Beware of Breaching Unwritten Contracts
Companies looking to cut costs and avoid layoffs can sometimes risk a serious backlash from staff. I’ve seen firms implement pay freezes, introduce flexible work practices, and make big alterations to their pension plans. The more radical are even talking about lending staff to competitors. These types of change can be difficult to put in place. Firms have to plan carefully and consider how any change may affect compliance with the law. Changes like these often breach contractual terms and conditions of employment or agreements made with trade unions. Consequently they need careful thought, communication and often consultation and collaboration with staff to enable successful implementation. There have been some notable exceptions of management failure, such as British Airways’ very public…
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