Material changes to your terms of employment: What does it mean for you?
Material changes to terms of employment often comes up when, for example, employees are required to change their place of work. Read on to find out when a change is considered material and what it means for you.
Get a brief overview of material changes to your terms of employment and the possible consequences for you.
Please note that - as a member of Finansforbundet i Danske Bank - you are always welcome to seek help and advice from our legal advisers. We encourage you to do so if any of the situations described below apply to you.
What is a material change?
A material change to your terms of employment is a change that is so significant that you can choose not to accept it and instead consider yourself being made redundant, with the terms and conditions that this entails in relation to salary and compensation.
Examples of material changes may include a reduction in salary, loss of managerial responsibilities, certain changes to working hours or job responsibilities, and a change of workplace. Here, we focus specifically on a change of workplace.
Material or non-material?
If you have been informed that your workplace will be relocated, this may constitute either a material or a non-material change to your terms of employment.
A change that is not legally considered material may still feel significant and have a major impact on your daily life.
However, this article focuses on changes that are legally considered material due to increased commuting time and any resulting increase in travel expenses.
If your journey from your home to your new workplace increases by more than 45 minutes each way compared with your current commute, the relocation may constitute a material change to your terms of employment.
Example: If your current commute from home to your workplace takes 15 minutes, your commute to your new workplace would need to exceed 60 minutes before it can be assessed whether the relocation constitutes a material change to your terms of employment.
If the change is non-material, you must be given “reasonable notice” of the relocation, for example a couple of weeks.
You must then start working at the new workplace. You will not receive an individual letter notifying you of the change, but you will subsequently receive confirmation of your new workplace in your HR folder.
If the change is material, you have two options:
1)
You accept the change because you want to remain in your job.
In this case, the relocation can take place with “reasonable notice”, typically a couple of weeks.
From the time your workplace is relocated until the end of your individual notice period (maximum six months), you may claim compensation in the form of either reduced working hours or payment for additional working time corresponding to your increased commuting time, reimbursement of any additional travel expenses, or both.
2)
You do not accept the change and choose to consider yourself being made redundant.
Rejecting a material change to your terms of employment does not make the change itself go away. It means that your employment will end when your individual notice period expires.
Until the physical relocation takes place, you must continue working as usual form your workplace. Once the relocation takes place, you are not required to move to the new workplace for the remainder of your notice period unless otherwise agreed.
As described above, compensation or other arrangements may be agreed for the remainder of your notice period, including working from home.
Garden leave is also one possible option. However, garden leave is not granted automatically, and you cannot simply stop attending work without consequences if no agreement has been made.
Always contact our legal advisers if you find yourself in this situation.
Because the consequences of rejecting a notified change can be significant, we strongly encourage you to contact our legal advisers for an individual assessment of your situation.
If you have any questions, please contact us at fidbjura@finansforbundet.dk or +45 45 14 01 11.