Contract Variation - Changing Terms And Conditions

The recent Employment Appeal Tribunal (EAT) decision in the case of Mr Morgan v Network Europe Group gives useful guidance for any employer considering making a variation in their terms and conditions of employment, or any employee who may be facing such a variation.

Mr Morgan's original employment handbook and contract made no provision for payment during lay-off. After being employed for three years under these terms, he was given a new handbook which included provisions for lay-off without pay (other than statutory guaranteed pay).

The handbook contained the standard wording, "this [...] together with your contract of employment, sets out your main terms and conditions of employment". Mr Morgan signed the handbook, which acknowledged that he had read it.

In the original tribunal case, the tribunal determined that the claimant was bound...