Navigating Changes in Employment Contracts: What You Need to Know
Navigating the complex process of employment contracts can be challenging, especially when it involves changes to your job role. If you’re faced with a change in your employment contract, or you just want more knowledge on the subject, here’s what you need to know.
What is an Employment Contract?
An employment contract is a legally binding agreement between an employer and employee that outlines the rights and responsibilities of each party. Whilst usually written down and agreed to, it can also be agreed verbally or through conduct. This is when an employer and employees’ actions show there’s an agreement even though it’s not been written down or discussed.
Employment contracts are important because they provide clear expectations and outline job roles, responsibilities, and working conditions which can help prevent misunderstandings between employers and employees. Contracts specify details like compensation and benefits, salary, bonuses, perks, pensions, and rights.
Can My Employer Change My Contract?
When it comes to your employment contract, neither you nor your employer can make changes without each other’s agreement. Any changes should be made following a negotiation or agreement.
If your employer changes your contract without an agreement, your employer might impose the change and inform you the change will take effect from a certain date. If this happens, your employer must explain the reason for the change, and put the change in writing.
If this happens, you can choose whether you want to accept the change or not.
Do I Need a New Contract if My Job Changes?
Whether you need a new contract or not depends on the nature of the changes. For minor changes like a shift in duties that still remain within the scope of your original role, a new contract may not be necessary. However, major changes like a completely new job role, department, or responsibilities within the business, a new contract, or an amendment to the current contract, may be needed.
Other reasons you may need a new contract for your job include:
- Changes in terms and conditions
- Change in salary
- Change in working hours
- Change in job title or responsibilities
- Legal changes like company policies or statutory changes
When a contract changes, both parties must agree to the terms.
Do I Have to Sign a New Job Contract?
If changes have been agreed to your job role, you don’t have to sign a new contract for these changes to take effect. However, these changes must be detailed in writing by your employer, for example in a letter or email. This helps to make sure every party is clear about the agreed changes so there is less chance of someone misinterpreting them.
When the changes have been put in writing, you and your employer should check it’s accurate for what’s been agreed and discuss any questions or concerns.
When receiving the letter or email detailing the change in contract, you should make sure the following details are outlined:
- The change in question
- Why the change has been introduced
- What the change entails
- When it will take effect and how
- How long it will last if applicable
- Who you should speak to for any concerns
- What’s expected of you
Can I Refuse to Sign a New Job Contract?
It can often be difficult to reach an agreement on a contract change, especially if the changes are complex. Negotiations can take a lot of time and energy, and disagreements may arise, but these disagreements can often lead to new solutions that could benefit everyone.
However, sometimes an agreement can’t be reached, and you may want to refuse the new contract. You are within your rights to refuse the new contract and your employer usually cannot force you to accept it, unless your current contract states otherwise.
If you refuse your new contract, you need to let your employer know. If you start to work under the new terms and conditions, your employer can take this as your agreement to the change in contract.
Do You Need Help Navigating a Contract Change?
At 365 Employment, we have a team of experts who can provide comprehensive guidance on navigating employment contract changes. We offer personalised advice on your rights, negotiating contract terms, and addressing any concerns or questions you have. Get in touch with us now for assistance.
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