Ask the expert: Change to rate of bank holiday pay

This week the experts, Adam Partington and Esther Smith advise on how to change a rate of pay.

The question: Change to rate of bank holiday pay

I am thinking of reducing the premium we pay to staff for working on a bank holiday from double time to time and a half. We have a strong business case for needing to reduce our cost base. It will also mean cutting those who have lieu time for bank holidays to 50% lieu time. This rate of pay and lieu time is defined in the contract of employment and therefore it's a change to contractual terms and conditions.

My proposed process is to consult with employee forum representatives on behalf of all staff for a 30 day period and if no suitable alternatives are proposed, issue everyone with a new contract of employment providing 12 week’s notice of the change. We have just under 300 employees.

My questions are as follows:
- Is this the correct process to follow?
- What pitfalls could we come across?
- Will we need to meet with every individual employee to dismiss them from their old contract, or can this just be done in writing?
- What is the process if an employee refuses to accept the new contract?

 

Legal advice:

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