Lost annual leave days due to policy reform

[Cra]

I started my job in December 2021.

There are 8 pay bands; 1-5 and 6-8. 1-5 are admin, reception, cleaners etc. 6-8 are managers, deputies and the directors. I am band 6.

When I started, I had 35 days leave, including bank holidays. This is written in my contract. Bands 1-5 had 32.

From January 2023, my company has brought in a new policy; all staff have 32 days upon appointment. Extra days can be earned upon long service; 3 completed years by 31st December earns 1 extra day the following year and those completing 5 full years would earn an extra 2; a total of 3 additional leave days.

However, all staff in bands 6-8 who have been there less than 3 years have had their leave reduced to 32 days, and those with less than 5 years have 33.

Surely I still should have 35, as that is what it says in my contract? And this policy should only be applicable to new employees.

Is there anyone who works in HR who could advise? I asked ours and they've said they can do it as they've changed the policy!

Thanks in advance

@Cra HR professional here.

This may be a change via a collective agreement/buy out of T & Cs, possibly tied to a pay award or other changes. Do you have a recognised Trade Union who negotiates changes with management?

Thanks @Premiumbondbaby

No, no Trade Union. We have just been told that's the policy and that's that.

@Cra talk to ACAS. https://www.acas.org.uk/changing-an-employment-contract also advise them there is no TU and I assume no staff network/employee representation.

Whilst they can change the policy for new joiners, anyone promoted in the future etc. to make changes that remove a contractual entitlement they need to follow a proper process, which includes consultation. The size of the workforce is relevant to the process https://www.acas.org.uk/informing-and-consulting-about-workplace-matters

Making a change unilaterally like this is a breach of contract. Ideally get advice from ACAS and then jointly with affected colleagues raise a grievance for breach of contract, failure to consult etc.

In your position I would be looking to work with other colleagues and look to use mediation to resolve this, including either joining a union or setting up a staff network so there is a team to lead on future consultations.

Ultimately an employer can use the unethical nuclear option of dismissal and rehire on new contracts. This relies on employees needing their jobs and so not being prepared to walk away and claim constructive dismissal. Any claim that goes to ET will take years and during that time most employees need an income.

Thank you @Premiumbondbaby that's really helpful. There's only a few of us in these position as most people in the higher bands have been there a long time, the decision was brought as part of a retention drive by the directors.

@Cra in that case I would definitely try to get everyone impacted to write a joint letter asking that the policy is not applied retrospectively. Point out the small number of staff impacted and that it is counter productive as the contractual change reducing your leave and overall benefits package is acting as a de-motivator. Ask what consultation process they followed and if they have done an equality impact assessment - age may be a factor if only newer staff are impacted.

FYI - pay and reward strategy is about Attracting, Retaining and Motivating staff.