Employment contracts are not always fixed forever. Employers may sometimes want to change working hours, pay, duties, location, benefits or other terms because the business is restructuring or changing how it operates. But that does not automatically mean an employer can simply rewrite an employee’s contract.
If you are asking can my employer change my contract without my agreement?, the answer depends on what your contract says, the change being proposed and how the employer handles the process.
Does an employer normally need agreement to change a contract?
In many situations, contractual terms should be changed by agreement between the employer and employee. A sensible process usually involves explaining the proposed change, giving the employee enough information to understand it, listening to concerns and genuinely consulting before a final decision is made.
If agreement is reached, significant changes to the main terms of employment should normally be confirmed in writing.
What terms might an employer want to change?
Contract change disputes can arise over a wide range of issues, including:
- salary or bonus arrangements;
- working hours or shift patterns;
- place of work;
- job title, duties or responsibilities;
- commission structures;
- holiday entitlement;
- sick pay or other contractual benefits;
- notice periods;
- remote or hybrid working arrangements.
Some changes may appear small but can have a significant effect on an employee’s income, childcare, travel or other responsibilities.
What is a flexibility clause?
Some employment contracts contain a flexibility or variation clause. This may give an employer a limited right to change a particular term in certain circumstances.
A flexibility clause is not necessarily a blank cheque. The wording matters, and employers should use such clauses reasonably. A change may still be open to challenge if it goes beyond what the clause actually allows, is introduced without reasonable notice or creates other legal problems such as discrimination.
For example, a clause allowing an employer to change an employee’s place of work may not make every possible relocation reasonable.
What if I do not agree to the change?
If you do not agree, it is usually important to make your position clear rather than ignoring the proposal. Depending on the circumstances, you might:
- explain why the change causes difficulty;
- suggest an alternative arrangement;
- ask for more information about why the change is needed;
- state that you do not agree to the contractual variation;
- raise a formal grievance where appropriate;
- take legal advice before deciding whether to continue working under the new terms.
Simply continuing to work after a change is introduced can sometimes create arguments about whether the employee has accepted the new terms by their conduct. The position can be legally complex, so getting advice early can be important.
Can an employer impose a change anyway?
An employer may sometimes announce that it intends to impose a contractual change even though agreement has not been reached. Doing so can expose the employer to legal risk, including potential breach of contract issues.
An employee’s options will depend on the seriousness of the change and the circumstances. Possible issues can include working under protest, breach of contract, unlawful deductions from wages or, in serious cases, constructive dismissal. Constructive dismissal is a complex area and resigning can carry significant risk, so legal advice should usually be taken before making that decision.
What is dismissal and re-engagement?
If agreement cannot be reached, an employer may in some cases consider ending the existing contract and offering continued employment on new terms. This is commonly called dismissal and re-engagement or “fire and rehire”.
Current Acas guidance says this should only be considered as a last resort after reasonable attempts have been made to reach agreement through meaningful consultation.
Ending the existing contract is still a dismissal. Depending on the employee’s qualifying service and the facts, questions can arise about whether there was a fair reason, whether a fair process was followed, notice, consultation and potential unfair dismissal.
Where an employer is proposing to dismiss 20 or more employees at one establishment within the relevant period, collective consultation obligations may also arise.
Can an employer reduce my pay without agreement?
A reduction in contractual pay is a significant change. If an employer simply pays less than the employee is contractually entitled to receive, this may raise issues including breach of contract and unlawful deduction from wages.
The exact position depends on the contractual documents and whether a valid change has been agreed or lawfully introduced.
Can an employer change my working hours?
Working hours can sometimes be changed by agreement or under a valid contractual clause, but the employer should consider the wording of the contract, reasonableness, notice and the effect on the employee.
There can also be discrimination issues. For example, a proposed change to hours may have a particular impact on an employee because of disability, sex, religion or another protected characteristic.
What should I do if my contract is being changed?
Before agreeing to a significant change, consider getting a copy of your current contract and any relevant policies. Keep written records of the proposal, consultation meetings and any objections you have raised.
If you are being asked to sign a new contract quickly, you do not have to make a decision without understanding what is changing. Our employment contract review service can help you compare the old and new terms and understand the possible consequences.
Could I have an unfair dismissal claim?
If an employer dismisses an employee because they will not accept new terms, the dismissal may potentially be challenged. Whether a claim is available depends on issues such as qualifying service, the employer’s reason, consultation and procedure.
There are strict time limits for many Employment Tribunal claims. If employment has ended or dismissal is being proposed, it is sensible to take advice promptly. You can also read about our unfair dismissal advice.
Employment solicitors in Cheltenham
Pembridge Solicitors advises employees and employers in Cheltenham, Gloucester, Tewkesbury, Stroud and across England and Wales on contract changes, disputes, dismissals and settlement agreements.
If your employer is proposing new terms and you are unsure what they mean for you, contact our employment law team.
This article is general information only and does not constitute legal advice. Employment law and tribunal procedure can change, and the correct approach depends on the specific contract and circumstances.
