Your employment contract sets out important terms governing your relationship with your employer. These may include your salary, working hours, place of work, responsibilities and other benefits.
But what happens if your employer suddenly tells you that one of those terms is changing?
Perhaps you are being asked to work different hours, accept a reduction in pay, work from another location or take on significantly different responsibilities.
Employees can sometimes feel that they have little choice but to accept whatever their employer proposes. However, changing contractual terms is not always straightforward.
Can my employer change my contract without my agreement?
As a starting point, contractual terms generally cannot simply be changed by one party without the agreement of the other.
An employer may therefore discuss a proposed change with you and seek your agreement.
However, the precise position will depend on your contract and the circumstances surrounding the proposed change.
Some employment contracts contain flexibility or variation clauses that allow an employer to make certain changes. The existence of such a clause does not necessarily mean an employer has an unrestricted right to make any change it wishes.
The wording of the contract and the nature and extent of the proposed change will be important.
What kinds of changes might an employer propose?
Contractual changes can arise for many reasons.
A business may be restructuring, reducing costs, relocating or changing how employees work.
An employer might propose changes to:
- working hours or shift patterns;
- salary or other contractual payments;
- place of work;
- job duties and responsibilities;
- benefits; or
- other contractual arrangements.
Some changes may be relatively minor. Others can have a significant impact on an employee’s finances, family responsibilities or ability to continue in the role.
Do I have to agree?
You do not necessarily have to agree simply because your employer has proposed a change.
Before responding, make sure you understand exactly what is being proposed and why.
Ask when the change is intended to take effect and whether it is temporary or permanent.
It can also be helpful to ask your employer to confirm the proposed changes in writing.
This gives you an opportunity to consider the implications rather than feeling pressured to make an immediate decision.
What if I continue working after the change?
Employees should be cautious about simply continuing to work under changed terms without raising an objection.
Depending on the circumstances, continuing to work may potentially be relied upon as evidence that a change has been accepted.
If you disagree with a contractual change, it is therefore important to consider how and when you communicate that objection.
Obtaining advice early can help you understand how best to protect your position.
What if my employer reduces my pay?
A proposed reduction in salary is understandably a major concern.
Your employer should not simply assume that you have agreed to receive less money.
Depending on the circumstances, an unauthorised reduction could potentially raise contractual and employment law issues.
Before agreeing to a reduction, understand whether it is temporary or permanent, why it is being proposed and whether there are alternatives.
What if the change affects my working hours?
Changes to working hours can have significant practical consequences.
You may have childcare responsibilities, caring commitments or another arrangement that depends upon your existing working pattern.
If a proposed change creates particular difficulties, explain these to your employer as part of the consultation process.
There may be circumstances where other legal considerations are relevant depending on why the proposed change affects you.
What happens if I refuse?
This will depend heavily on the circumstances.
An employer may decide not to proceed with the proposed change, negotiate an alternative or explore other options.
In some situations, employers may consider terminating existing contracts and offering continued employment on new terms. This can create significant legal risks and should not be treated as a straightforward way of changing contractual arrangements.
If your employer has told you that your employment could end if you do not accept new terms, you should consider obtaining legal advice promptly.
Don’t resign without taking advice
If you believe your employer has seriously breached your employment contract, you may feel that resignation is your only option.
Resigning in response to an alleged contractual breach can have significant legal and financial consequences.
Before taking such a step, it is sensible to obtain advice about your circumstances and the options available.
How Penerley can help
Changes to an employment contract can affect your income, working life and future employment.
Understanding your contractual position before agreeing, refusing or resigning can be extremely important.
Penerley can advise employees on contractual changes, workplace disputes, dismissal and other employment matters.
If your employer is proposing changes to your contract and you are unsure whether you have to accept them, contact Penerley to discuss your position before making a decision.
