Employers often assume that changing an employee’s hours or days of work is a straightforward operational decision. In reality, it is one of the most common areas where well intentioned employers inadvertently expose themselves to risk. Even where changes seem reasonable or minor, altering working arrangements without following the correct process can undermine trust and lead to disputes.
In New Zealand, an employee’s hours and days of work are contractual terms. This means they cannot be changed unilaterally, even if the business has genuine operational reasons for doing so. The starting point is always the employment agreement. If hours or days are specified, they form part of the employee’s agreed terms and conditions and any variation generally requires the employee’s consent.
Some employment agreements include variation or flexibility clauses, but these are often misunderstood. A clause that allows an employer to make changes for business reasons does not give a blank cheque. Employers are still required to act reasonably, consult with the employee, and genuinely consider their feedback before any change is made. Flexibility clauses are not a substitute for good faith.
Consultation is a critical part of the process. This means explaining the proposed change, the reasons for it, and how it may impact the employee. The employee must be given a genuine opportunity to ask questions, raise concerns, and suggest alternatives. Importantly, consultation is not simply notifying the employee of a decision that has already been made.
There are circumstances where changes to hours or days of work may be reasonable, such as changes in customer demand, operational efficiency, or business restructuring. However, even where the business rationale is sound, the process followed will be closely scrutinised if the change is challenged. What matters is not just why the change was proposed, but how it was handled.
Employers should also be cautious about making informal or temporary changes that quietly become permanent. A short term arrangement put in place to “help out” can, over time, create an implied variation to the agreement. Clear communication and documentation are essential to avoid misunderstandings later.
If an employee does not agree to a proposed change, employers should pause and seek advice before taking further steps. Forcing a change can amount to a breach of contract or, in some cases, constructive dismissal. Often there are alternative solutions that can be explored through proper discussion, negotiation, or role design.
Changes to working hours or days are not uncommon, but they must be handled carefully. Taking the time to review the employment agreement, consult properly, and document the outcome protects both the business and the employment relationship.
At proHR, we regularly assist employers with proposed changes to hours, days, and working arrangements. Getting the process right from the outset reduces risk, preserves goodwill, and ensures decisions are both lawful and fair.
