Contract Variation

I have worked for the same UK company for seven years and held a contract where the redundancy package is for 3months notice. The company recieve funding from the UK government and recently have been informed that next year they will recieve at least 15% less than this year.I along with 8 other members of staff on similar contracts have been asked if we would reduce our notice period to 1month. I am obiously unhappy about this and am considering refusing to reduce this voluntarily. Is my Employer entitled to reduce my notice period without my consent? I have read that it
is possible if the employee does not agree that they can to dismiss(?) and rehire on the new contract terms - is that correct? What would you expect my Employer to do in this circumstances and what is the process they'd go through to make this variation of contract and is there anyway I can stop this/ get compensation for their actions?

You are correct - the employer can enforce contractual changes. To do so they must consult (which they are doing) and attempt to get agreement. If you then refuse then they serve you your notice (I presume you mean that your notice is three months - not just notice of redundanct) and offer you a new contract with continuous service intact from the end of the original contract. You sign it or you resign (refusing to sign is a resignation). The third option is to "work under protest" but to do this you would need to lodge a tribunal claim for unfair dismissal (if you don't the term has changed anyway, and you are teated as though you have accepted it). Truthfully, I would say that you would almost certainly loose such a claim. The employer cannot pay what they do not have, and the funding cuts would be a genuine business justifcation for making the change. An employment tribunal would almost certainly take that view. I am afraid that you may have little choice but to agree - one way or another.

I'd also suggest that the writing is on the wall for redundancies coming, although I am sure you have already fugured that out. So you may want to start looking, necause as things stand, three months notice is no great benefit to anyone if there is unemployment at the end of it. It just staves off the inevitable, it can't change it. So if there is a chance to jump ship, it may be wise to do so.