Is It Legal to Change a Contract of Employment

Over the course of your career, especially if you stay with an organization for a period of time, your contract or terms of employment are subject to change. Typically, you will receive salary increases and, for example, your contract may change to reflect the different responsibilities you take on or a promotion. You can also request a change that your employer can accept. If everyone is willing to change the contract, it can simply be recorded in writing in a change statement. A modification of the employment contract may not be allowed in certain cases. For example, if the contract contains a clause prohibiting changes, you and your employer cannot change it. As the California Supreme Court has held, «the mere existence of an employment relationship does not create a legally protectable expectation that employment will continue or terminate only under certain conditions, unless the parties have actually agreed to such terms.» (Guz v. Bechtel Nat`l Corp. (2000) 24 Cal.4th 317, 355.) You may consider this course of action even if there is no explicit contractual basis for doing so, even if there must be a legitimate and reasonable business reason for the change, for example where there are special operational or economic circumstances that require restructuring or relocation. The basis of your employment relationship is usually defined in an employment contract. Some important information about your conditions is required by law, such as work obligations, salary, working hours, and vacation. We recommend that you always check your current contract first. If you don`t have a copy of your contract, ask your employer.

One of the most common problems in dealing with a contract amendment proposal is the lack of communication between the parties. In particular, the absence of any explanation, discussion or consultation on the part of the employer may lead to differences of opinion and discord and, in extreme cases, irreparable damage to the employment relationship. In addition, changes in schedule and obligation made in retaliation for employees exercising their labour rights – such as filing a workers` compensation claim, taking FMLA leave, filing a complaint of pay or discrimination, reporting, etc. – would violate workers` protection under these laws. And it is certain that changes made on the basis of unlawful discrimination (i.e. only women will have their hours reduced or their authority reduced) would be illegal. If your employer wants to reduce your compensation, it`s worth seeking expert advice early on to get a clear idea of your options and next steps, employers need to follow the right process when making changes to your contract – for example, if enough employees are affected by the proposed changes. Consultation may be necessary. Employers and employees must follow a number of procedures when making changes to an employment contract. We are facing an unprecedented time for the nation to respond to COVID-19. In the coming months, relations between employees and employers will evolve rapidly. Swathes of the workforce have been put on hold, while others are changing their responsibilities to meet current needs.

Some employees continue to work remotely, while others lose their jobs altogether. In these uncertain times, it`s important to know what`s legal and what`s not, and what your rights are as an employee before and after termination. Changes can be agreed directly between you and your employer or through a «collective agreement» between your employer and a union. This may be permitted by your contract even if you are not a member of a union. Most employment relationships are at will, meaning that the employer or employee has the right to terminate the relationship at any time, for any reason or no reason, with or without notice. Private sector employers adopt this doctrine as standard business practice. If you have an employment contract or agreement, it usually means that your employment relationship is not at will. The existence of an employment contract also indicates that your employer cannot make unilateral changes to a mutually agreed contract.

Provide a written statement of a contract change After receiving an agreement for a contract amendment, you must provide each affected employee with a written statement of those changes. While it is not necessary to document all changes to the contract, you must provide written notice of any changes related to the employee`s most important terms and conditions, such as hours of work or place of work, within one month. Your employer does not have the right to simply introduce any change he wants. If your employer is trying to make a change that you don`t agree with (e.g. to downgrade or reduce your salary), inform them immediately. Submit your objections in writing, ask for the reasons for the change and explain why you disagree. That said, if you go ahead with a proposed change in the hope that an employee will bow to pressure and remain silent about it, you may face very costly litigation, not to mention serious criticism from the court. The more employees you fire in this way, the greater your potential liability. Agreeing together on treaty changes in this way can not only help avoid possible disagreements and disputes, but also often lead to more harmonious cooperation.

Check your contract to see if your employer has the opportunity to reduce your working hours. It would be in the normal hours of work section of the document, and there might have been some flexibility in your terms to allow for quiet periods in the business or in anticipation of an economic downturn. There may also be «withdrawal conditions» in your contract. There may be clauses in your contract that give your employer the right to make reasonable changes without your consent, for example: If a collective agreement makes a change to the employment contract, the change applies to you even if you are not a member of the union or staff association. Employees can also request to change the terms of their contract. If a union is recognized, negotiations to change the terms of the collective agreement should be conducted through collective bargaining. Below, we see when a contract change can be made and how this process should be managed, including common risks and pitfalls, as well as the notification obligations required before a change. Changing an employee`s employment contract is generally not possible without their consent.

Even if the employment contract contains some form of flexibility or amending clause, you can only make use of this type of contractual provision if it is reasonable and you have sufficiently informed the employee. Depending on the nature of the change and when you need the change operationally, this can be as far as a «90-day contract change» or even a change with immediate effect. If there is a strong business reason for the change and your employer has properly consulted with you and looked for alternatives, it may be difficult to win your claim. If you have an employment contract, it is unlikely that your employer will be able to make changes without at least notifying you in advance before the change takes effect. Best practices suggest negotiating contract changes in such a way that both parties are aware of the changes and accept them.