Can my employer change my contract of employment?

A contract of employment is a legal agreement between the employer and the employee. Its terms cannot lawfully be changed or varied by the employer without agreement from the employee (either individually or through a recognised trade union).

Where a trade union is recognised, negotiations to change contract terms should be through collective bargaining.

Your employer owes an implied contractual duty to explain clearly the effect of any change, for example a change to wages or working hours.

Your employer should meet with affected employees, or the union where one is recognised, and explain their case for making the proposed change. Employees must be given time to consider the proposal as well as to suggest alternative ways of achieving the same result (for example if cost-saving is the aim, different cost-saving ideas).

Where the change involves removing a benefit, an employment tribunal is more likely to think your employer has acted fairly if it has offered something in return for the change, such as financial compensation, and given enough advance notice before the change takes effect.

An employee can decide to accept a change, and many terms of the contract are, of course, varied from time to time by mutual consent. For example, it is quite usual for pay to be varied (usually increased) on an annual basis.

A change to the contract must not leave an employee unable to perform the contract – for example, requiring an employee to relocate at extremely short notice with no payment of expenses.

The way your employer implements any contract change must not breach their duty not to behave in a way that damages mutual trust and confidence, or the implied duty of good faith.

Where changes are made to your contract, employers must give you written notification of the change within four weeks.

An unauthorised, one-sided variation will be a breach of the contract of employment, and the fact that the employer has given you notice of the change will not make it lawful. However, if you put up with the change without protesting, there is a good chance that you will be viewed as having implicitly accepted the change, losing your right to object to it.

You should consider regularly registering your opposition to the change (e.g. every month) and pursuing a claim in the employment tribunal for, say, unlawful deduction from wages.

In practice, a collective approach to this sort of dispute is often best, either via a group tribunal claim supported by your trade union, through protest and threatened industrial action, or by a combination of different approaches.

Sometimes, a change is so fundamental that it goes to the heart of the contract. A resignation in response to this kind of change could be a 'constructive dismissal'. However, resigning is clearly a very high-risk option, and usually only advisable when you already have another job to go to.

Note: This content is provided as general background information and should not be taken as legal advice or financial advice for your particular situation. Make sure to get individual advice on your case from your union, a source on our free help page or an independent financial advisor before taking any action.