Contractual notice period changes are more than just a line in a contract — they can have serious legal and practical implications for your business. Whether you’re adjusting notice terms for new hires or updating existing contracts, it’s vital to get it right. At EBS Law, we work with employers every day to ensure that notice period changes are legally compliant, fair, and enforceable. In this article, we’ll explain when and how notice periods can be changed, and what employers must do to avoid costly disputes.
Understanding Contractual Notice Period Changes
What Is a Contractual Notice Period?
The contractual notice period is the amount of notice an employer or employee must give to end the employment relationship. While UK law sets statutory minimums, many contracts include longer periods. These terms must be clearly stated in writing, typically in the employee’s contract of employment. Changing these notice periods — whether extending or reducing them — can affect employment rights, payment obligations, and business planning. That’s why it’s essential to approach contractual notice period changes with legal clarity.
When Might You Need to Change Contractual Notice Periods?
There are several reasons an employer might want to change notice periods. You may be updating your policies across the board, adjusting to business needs, or responding to employee requests. Common situations include:
- Introducing longer notice periods for senior staff to protect business continuity
- Reducing notice periods during restructuring or cost-saving exercises
- Aligning notice periods across departments for consistency
- Correcting inconsistencies between contracts and staff handbooks
Whatever the reason, any change must be agreed with the employee and confirmed in writing.
Legal Considerations for Changing Notice Periods
Contractual notice periods form part of the employee’s terms and conditions, which means they cannot usually be changed unilaterally. You must follow a fair process and seek written agreement. Even if your contract contains a flexibility clause, you’ll still need to consult with employees and ensure that any change is reasonable. Failure to do so could lead to claims for breach of contract, constructive dismissal, or unfair dismissal — all of which could result in tribunal claims and reputational damage.
Steps to Contractual Notice Period Changes
To change contractual notice periods lawfully, you should follow a structured process. This ensures you meet your legal obligations and maintain good employee relations. Key steps include:
- Reviewing current employment contracts and any existing flexibility clauses
- Preparing a clear, written explanation of the proposed change and business reasons
- Consulting with affected employees individually or collectively
- Obtaining written agreement to the change
- Issuing updated contracts or written statements confirming the new terms
Where agreement can’t be reached, legal advice is essential before proceeding. In some cases, employers may need to terminate and re-engage staff — a risky move that must be handled carefully.
Risks of Making Changes Incorrectly
Altering notice periods without proper process can backfire. If employees feel their rights have been violated, they may resign and bring claims against your business. You could also face issues with payment in lieu of notice (PILON), garden leave, and the enforceability of restrictive covenants if the new notice periods are unclear or unfair. Even minor changes, when mishandled, can lead to mistrust, low morale, and tribunal action. That’s why getting expert guidance is crucial.
If you would like free advice, John Bloor and the team are here to help. Call John today on 01625 874400 or email enquiries@ebslaw.co.uk for tailored support.
Best Practices for Employers
Changing contractual terms is not something to take lightly. Employers should ensure that all communication around contractual notice period changes is transparent, fair, and well-documented. Here are some best practices we recommend at EBS Law:
- Give employees reasonable time to consider proposed changes
- Consult in good faith and listen to employee concerns
- Apply changes consistently to avoid discrimination claims
- Keep signed copies of all updated contracts or addendums
By taking a thoughtful, legally sound approach, you’ll reduce the risk of conflict and build trust with your team.
How EBS Law Can Help
At EBS Law, we specialise in employment contracts and can help you make contractual notice period changes smoothly and legally. We’ll review your existing contracts, draft compliant new clauses, and guide you through any consultation or negotiation required. Whether you’re planning company-wide updates or handling a sensitive change with a senior employee, we provide practical, employer-focused advice that protects your business.
Contact John Bloor today for expert support at EBS Law. We’re here to ensure your business stays protected every step of the way. Call 01625 874400 or email enquiries@ebslaw.co.uk.
Further Reading from EBS Law
- Changing Employment Contracts for Employers
- Employment Law Advice for Employers
- Employment Tribunal Representation
For official guidance on employment contracts and notice periods, visit GOV.UK: https://www.gov.uk/notice-periods-resignation-dismissal.