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Consultation to alter contractual terms including pay policy

Posted in Employment Advice

What was the goal:
To change employees' contracts as the current incremental pay scales were too expensive.
What was the context:
Our client came to us seeking help in changing their salary review policy. Our client could not afford the salary increases that had been promised in their salary policy and there was real concern that, if it remained in its current state, the organisation would have to make people redundant.
What were the options:
We provided options for the salary review process including changing to CPI, RPI and market related salary review scales. We proposed an all employee award scheme and a recognition award scheme in addition to the annual salary review
What did we do:
  • We reviewed the current salary policy to fully understand the contractual entitlement and the current pay scale incremental promises
  • We compared each employee’s current salary against external market data, taking into account their roles, the industry type and size and the organisation’s location
  • As the organisation had a relatively small number of employees, we proposed changes to the salary review process which were suitable to the organisation’s size as well as came up with new reward initiatives
  • We provided help and advice about how to change employees’ contracts of employment which included a presentation document for the CEO, consultation meeting proformas, consultation timetable and we wrote a new reward policy.
What was the outcome:
We obtained Board approval for our recommended changes to the reward package. The organisation consulted with employees about the changes to reward, taking into account their views. The organisation is no longer worried that employees may seek breach of contract claims as they could not afford the previous salary policy promises.
What did the client say:
Our client found it helpful that we took them through the stages of change; and that we provided documentation/reports and presentations well in advance of the required internal meetings.