Hours of Trouble: The Risks of Overlooking Contract Variations

A recent Employment Tribunal case, Mr J Letch v ATP Access Platforms Limited, highlights the importance of maintaining clear documentation for changes to employment terms. A text message agreement to a reduction in working hours led to a dispute which concluded in successful claims for unfair dismissal, breach of contract, and unauthorised deductions from wages.

Background

The claimant, Mr J Letch, was employed by ATP Access Platforms Limited from July 2020 until his resignation in April 2024. His employment contract stipulated a five-day work week, but in October 2023, an agreement with the Operations Director, Mr Duxbury, allegedly reduced his weekly working days to four while maintaining his salary.

Legal Requirements

Changes to an employee's contractual terms must be properly communicated and clearly documented. Additionally, the Acas Code of Practice on Disciplinary and Grievance Procedures confirms the importance of responding to grievances appropriately.

Tribunal Proceedings

The Tribunal examined whether Mr Letch's contract had been varied to reflect his reduced working hours. Evidence showed that Mr Duxbury had agreed to the change, but failed to communicate this to Mr Richards, the company's owner. Following a text message from Mr Duxbury, Mr Letch worked four days a week for a number of months, with no reduction in salary.

However, in February 2024, he received a warning letter which stated there had been no agreement to vary his contract, and unauthorised absence would result in salary deductions and disciplinary proceedings. Mr Letch raised an Appeal and Grievance, but received no acknowledgment. Subsequent salary deductions, and a Data Subject Access Request revealing discussions about replacing him, led to his resignation in April 2024.

Outcome

The Tribunal concluded that Mr Duxbury had reached an agreement with the claimant to change his working hours while maintaining the same pay. As Mr Duxbury had the authority to vary employees’ contracts, the new agreement was binding on the company. The Tribunal found that Mr Letch had been constructively dismissed due to the respondent's failure to honour the agreed contract variation and the subsequent salary deductions. The Tribunal ruled in favour of Mr Letch, citing breaches of contract, including the failure to pay him in full and the breach of the implied term of mutual trust and confidence.

Takeaways for Employers

This case serves as a valuable reminder for employers to ensure any variations to employment contracts are clearly documented. Maintaining open communication is important and any grievances should be addressed with a prompt and fair approach.

Bright Contracts offers a wide range of employment resources, including a Grievance Policy aligned with Acas guidance. Please visit our website or contact a member of our team to find out more about the support we can offer you.