If the employee agrees to a permanent reduction in hours and their full-time employment ends, they will need to enter into a new contract which sets out the agreed weekly hours. This also means the normal rules for ending employment apply, including giving notice and the employee being paid out any accrued entitlements.
To note, generally employees can’t be forced to reduce their hours without the employer ending their full-time position and re-engaging them as a part time employee. If an employer does this, the usual protections from unfair and unlawful termination apply … read more >>