Page 10 - PA_Enterprise_February-March_2021
P. 10
PA Enterprise
How to deal with contracts
affected by Covid
What should employers do when handling contractual changes such as
short-term layoffs and flexible working requests?
Covid-19 has resulted in a number of contractual The government guidance on contracts in
issues being raised, many of which would have general is that businesses should act responsibly,
been entirely unforeseeable a year ago. It is act fairly, support the response to Covid-19 and
likely that the employer’s business may have protect jobs and the economy. But how does this
changed, whether that be down to the type, apply to employment contracts?
amount or scope of work that is required to be The first step when making any contractual
done. It would therefore follow that contractual changes will always be to communicate. It
amendments may need to be made, particularly is imperative that employees are consulted
in respect of job description, place of work and before any changes are made, and consent
potentially hours of work. should ideally be sought. Decisions should also
be recorded in writing where possible. This is
essential to ensure the business is protected in
the case of any potential employment tribunal
claims.
In light of the uncertainty the pandemic offers,
employers may be unsure as to when their
business will pick up and whether it will dip
once again. Organisations may want to consider,
therefore, whether it would be sensible to include
short-term layoff provisions, which allow you to
release employees temporarily in the absence
of workflow. Employers should note two points
here however: first, short-term layoff should only
be used when it is expressly provided for in the
contract; and second, whether the employee can
be furloughed under the job retention scheme .
Alternatively, for those businesses that are able to
keep their employees on, they may be faced with
a situation where some staff request for the place
of work in their contract to be amended from the
office to their home, or request flexible working,
as per their statutory right. Employers are not
obliged to accept these requests, but they are
PA Enterprise is published by
10 February/March 2021
