As a consequence of the downturn in the economic climate many employers, for the first time, have had to make tough decisions as to whether they make staff redundant or think of some other means of reducing overheads.  One of the solutions has been to agree with staff to reduce working hours and to provide flexible working.  If the changes are mainly temporary, employers may be quite happy to rely upon the verbal agreement reached between itself and staff but is it really enough to protect you, or will it be better if you confirm the agreement in writing?

The difficulty is that relying solely on a verbal agreement is risky: if there is a disagreement later, it will be one person’s word against the other.  For example it could be suggested by an employee that they had been informed a reduction of hours would be for a limited period only.  Alternatively, an employee could argue that they were pressured into the agreement and feared being made redundant if they refused.  This could allow them to bring a constructive dismissal claim.

Simon Thomas, partner specialising in employment law comments:

“There are practical reasons for putting your temporary arrangements in writing.  This is particularly relevant where several employees have agreed to some form of flexible working such as reduced hours.  If you don’t set out the terms in writing you could waste a lot of time trying to remember what arrangement was agreed for each one and the absence of a written agreement increases the risk of an employee successfully arguing that a more advantageous arrangement had been agreed.

You do not need a lengthy written agreement or go about amending all your contracts.  Instead, record the key changes in writing, give two copies to the employee which they should sign, returning one copy to you.

Most employment claims that we deal with involve arguments as to who said what to whom and for that reason, recording such changes in writing is a failsafe way of protecting your position.”