My Employment Rights

The EAT has held that a broad contractual right contained in a contract or handbook, which seeks to allow the employer to alter terms and conditions in line with business needs are permissible, provided that the changes are properly implemented and the employer acts in line with the implied duty to maintain trust and confidence.

These types of clauses are commonly included in contracts and policies and are intended to permit an employer to make changes to contractual terms, including rates of pay and hours of work, without the need for the express consent of employees. There is therefore much debate as to how much freedom the employer actually has when exercising them. 

On the facts of this case, Asda were found to have acted properly in harmonising terms and conditions of employment for a small proportion of staff who refused to agree to a new pay structure.