Your employer has changed your contract, do you have to accept it?
Contract changes are a common source of workplace disputes. High‑profile examples such as changes affecting junior doctors show how contentious they can be. Employers can change contract terms in some circumstances, but not always and not without limits. Your rights depend on what your contract says, how significant the change is and how you respond.
Whether your employer can change your contract without your agreement depends on two things:
- Whether your contract includes a variation clause
- Whether the change is reasonable and lawful
What If There’s No Contractual Right to Change Terms?
If your employer changes your hours, duties, or other terms without your consent and there is no clause allowing this, you must act quickly.
Why timing matters
If you simply start working under the new terms without objecting, you may be treated as having accepted the change. At that point, you’re stuck with it.
What to do
- Write to your employer stating clearly that you do not agree to the change
- Stay professional and non‑confrontational
- Explain your reasons
- Continue working your original hours/terms
Your employer may then:
- Offer a compromise
- Offer additional pay
- Withdraw the change
- Or insist on it
If they insist and you refuse, they would have to dismiss you and if you have two years’ service, that could amount to unfair dismissal.
What If the Contract Does Allow Changes?
Some contracts include variation clauses giving the employer discretion to change certain terms.
However, even with such a clause:
- Employers cannot make extreme or unreasonable changes
- Employers must not breach the implied term of trust and confidence
Example
If your employer cuts your salary from £40,000 to £20,000 while expecting the same hours, that is likely a breach of trust and confidence, even if the contract appears to allow changes.
Your options would then be:
- Refuse the change and wait to be dismissed (potentially unfair dismissal)
- Resign and claim Constructive Dismissal
What Is Constructive Dismissal?
Constructive Dismissal occurs when:
- Your employer doesn’t fire you
- But their actions make your position untenable
- And the relationship of trust and confidence has broken down
In this situation, you must resign immediately and bring a claim for unfair dismissal, but only if you have 24 months’ service.
When Can Employers Justify Major Changes?
If an employer can prove that the business cannot survive without the changes, they may be able to:
- Consult staff
- Dismiss employees who refuse the new terms
- Re‑engage them on the new terms
- Or, in some cases, make redundancies
Employees with less than two years’ service have fewer protections and may have to accept the change or risk dismissal.
Practical Advice: How to Handle Contract Changes
As with any workplace conflict, negotiation is usually the best approach.
- Try to find common ground
- Explain your concerns calmly
- Explore compromises
- Consider whether the change is temporary or permanent
- Keep communication professional
As Churchill famously said, “Jaw‑jaw is better than war‑war.” A workable compromise is almost always better than a legal battle, especially when you still have to work together afterwards.