Case study - updating employment contracts and bonus scheme

Background

A business in the construction industry which manufactures heavy plant asked us to review and update its contracts of employment, and also to consider drafting a new bonus policy. The challenge was that we had to respect the rights of current employees and also build in some flexibility for our client, particularly with respect to new starters.

Client objectives

The client realised their contracts had not been reviewed for over fifteen years. They also wanted to make their bonus scheme more flexible so that it could be withdrawn or changed on shorter notice. Up to our involvement, the bonus scheme had not been changed at all, and there was no indication in the scheme rules that it could be amended, or withdrawn. The client wanted us to change this, and also advise them on how this could be communicated to their employees, without causing bad feeling.

Support we provided to our clients

Our team worked with the company Secretary to create a wholly new general employment contract – this had certain elements which the Secretary could adapt in each case, and it was not suitable for senior executives, however we will be working with the company to draft these types of Agreement in due course. After consulting with the business, we were able to update the bonus scheme rules and these changes were explained to the employees at a ”Town Hall” meeting. The changes were accepted by the employees without the need for a formal consultation, and the new improved bonus scheme rules will be included in every new starter’s welcome pack.