Can an Employer Change the Terms of a Contract of Employment?

As an employee, it is crucial to understand your employment contract and the rights you hold under it. One of the significant concerns employees have is whether their employer can change the terms of their contract of employment. The answer is yes, but with certain limitations.

Employment Contract

An employment contract is a legal agreement between the employer and employee, which outlines the terms and conditions of employment. This contract provides security and protection to both parties and sets out the expectations of the employer and employee. For instance, the employer may outline the job description, working hours, salary, benefits, termination, and confidentiality clauses in the employment contract.

Can an Employer Change the Terms of the Contract?

An employer can change the terms of an employment contract, but they must follow the correct legal procedures. The changes must be reasonable and not disadvantageous to the employee. An employer cannot make changes to the contract without the employee`s consent, except in specific circumstances.

If the employer wants to make changes to the employment contract, they must give the employee reasonable notice and provide a written statement outlining the changes. The employee should receive enough time to consider the changes and may seek legal advice if necessary.

If the changes proposed by the employer are significant, the employee may choose not to accept the new terms and may resign from their position. In this case, the employee may have grounds to make a claim for constructive dismissal.

When Can an Employer Change the Terms of the Contract Without the Employee`s Consent?

There are specific circumstances where an employer may change the terms of an employment contract without the employee`s consent. These circumstances include:

1. Where the change is necessary for the employer to comply with a legal obligation. For instance, if the employer must adhere to new health and safety legislation.

2. Where changes are necessary due to business restructuring. For instance, if the employer must relocate the business to a new location, they may need to make amendments to the employee`s contract.

3. Where there is a collective agreement between the employer and employee representatives. For instance, the employer may negotiate new terms with a trade union.

Conclusion

Employment contracts protect both the employer and employee and set out the expectations of both parties. An employer may change the terms of the contract but must follow the correct legal procedures and provide reasonable notice to the employee. If the changes proposed by the employer are significant, the employee may choose not to accept them and may resign from their position.