Varying An Employment Agreement

One way or another, as is the case with the amendments made by agreement, where the amendment is made in the exclusive interest of the employer, the employer should offer some benefit in exchange for the proposed amendment. It also increases the chances of reaching an agreement. It can be difficult. On the one hand, the law recognizes as a general proposal the prerogative of an employer to manage or organize its business. On the other hand, it is not an absolute right and the terms of the worker`s employment contract should not be overlooked. If the employer is unable to reach agreement on a contract modification, its last resort is to properly terminate the contract and propose a new contract with revised terms to begin at the end of the old contract. This article examines the situation in which the employment contract states, as usual: “This agreement can be amended by written agreement between the employer and the employee”, the proposed amendment is more than negligible and does not benefit the employee. Sometimes employers “buy” an agreement by offering other benefits or a one-time payment in return. Labour MP Siobhain McDonagh has proposed that thousands of M-S employees lose their jobs in the run-up to Christmas if they refuse a wage deal. Employees who have not agreed to new conditions would terminate their employment contracts and propose re-employment under new conditions as part of an attempt to implement changes in wages and pensions.

Many employers write flexibility in their employment contracts from the outset to give themselves the power to make changes at a later date without having to reach an agreement. How to change the terms of existing employment contracts The problem is that you cannot simply issue new employment contracts with different commercial terms for existing employees. It is illegal to unilaterally make changes to the terms of employment of an existing employee, so the trick is to get your employee`s consent. If a worker`s employment may be at risk, if the change does not take place, workers should also have the opportunity to have a support person or a representative with them when they give their opinion. Employers must begin a consultation process to reach an agreement. Employers who, without their consent, make changes to workers` contracts violate the contract. The employer must retain copies of an individual agreement and proposed agreements that were provided during negotiations for an amendment. Employers are entitled to additional conditions in their employment contracts with new workers, provided they have an individual employment contract. It does not matter that new employees have different business terms than existing employees.

The Employment Relations Act 2000, section 65 (2), defines the necessary content of an employment contract, but also provides for section 65, paragraph 1, point b), which the agreement may contain the conditions that employers and workers deem appropriate. If an agreement can be reached, the new agreement should be written down and staff should be invited to sign the agreement. If it is a reduction in wages or benefits or a trade restriction, the employer should give the worker some “reflection” when the worker gives up something to ensure that the new agreement is binding. The worker should receive a letter with the new employment contract and indicate when it will come into effect. An employment contract must at least contain the following clauses: if the proposed amendment relates to an explicit clause in the worker`s employment contract (z.B working time) and the agreement stipulates that any change will be made by mutual agreement, it will be more difficult for an employer to unilaterally make an amendment, in particular a substantial change. Provided that the proposed contract amendment is not covered by a flexibility clause, the employer must obtain an agreement.

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