Changing an employment contract
Getting agreement
Usually, the employer and employee both need to agree to any contract changes. But an employee can insist on a change if they have a legal right to it; e.g. not working on a Sunday.
As an employer, you must get an employee’s agreement if you want to make changes to their contract.
You should:
Making changes
Once employers have agreed on changes with their staff, they need to:
Collective agreements
Employers must write to their staff to let them know about any changes to collective agreements with trade unions or staff associations.
These changes might affect the terms of employees’ written statements, including pay and working hours, whether or not they’re a member of the union or staff association.
Flexibility clauses
Flexibility clauses are terms in a contract that give employers the right to change some conditions of employment, eg relocation.
Employers can only use flexibility clauses to make reasonable changes. For example; An employer couldn’t use a flexibility clause to insist on an employee moving to another country to work with 1 week’s notice!
Changes of employer
If someone starts working for a different employer, they’ll normally have to be given a new written statement within 2 months.
However, if the name of a business changes or there’s a new employer but no other changes in terms and conditions, the employer doesn’t need to issue a new written statement. They still need to write to their staff about the changes within a month.
Disciplinary measures
Sometimes changes to an employee’s terms and conditions, like a demotion, can happen as a result of a disciplinary measure.
Employers should make sure the staff handbook or intranet site contains information about how this could happen in the section dealing with disciplinary procedures. (See more on
Dealing with problems
Problems can arise if:
Solving disputes
Employers and their staff should try to solve disputes about contract changes things by talking informally or through mediation.
Employers (and employees) can also get FREE advice from Acas (Advisory, Conciliation and Arbitration Service).
Acas Helpline
Telephone: 0300 123 1100
Monday to Friday, 8am to 8pm
Saturday, 9am to 1pm
If the problem can’t be solved, employers or employees may have the right to take legal action. It’s important to get advice first because legal action can be expensive. Employee trade union members may be able to get legal advice from their union.
Making a change without agreement
If an employer makes a change to a contract without getting agreement (including by using flexibility clauses unreasonably), employees may:
If an employee disagrees with new terms and conditions but doesn’t say or do anything, this may count as agreeing to the changes.
Re-employment on new terms and conditions
Employers may, as a last resort, end a contract and re-employ someone on new terms and conditions.
Employers who are dismissing employees must follow the legally required:
Breach of contract claims
If an employee claims breach of contract and they can’t solve things informally with their employer, they may be able to take their case to a civil court or an employment tribunal (or an industrial tribunal in Northern Ireland).
Their employer may be able to make a counter-claim.
Claims and counter-claims can only go to a tribunal if they:
Time limits
Usually, employees must make a claim to a tribunal within 3 months of ending their employment. The employer gets 6 weeks from receiving a copy of the claim to decide whether to make a counter-claim.
Compensation limits
If the tribunal agrees with the employee’s claim, they may award compensation. This can only be for financial loss (eg non-payment of wages), up to a maximum of £25,000.
Read about dismissing staff and staff disciplinary procedures...
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Getting agreement
Usually, the employer and employee both need to agree to any contract changes. But an employee can insist on a change if they have a legal right to it; e.g. not working on a Sunday.
As an employer, you must get an employee’s agreement if you want to make changes to their contract.
You should:
- consult or negotiate with employees or their representatives (eg from a trade union or staff association)
- explain the reasons for changes
- listen to alternative ideas from employees
Making changes
Once employers have agreed on changes with their staff, they need to:
- update the terms of their employees’ ‘written statement’ of employment conditions
- write to their employees within a month to tell them exactly what has changed
Collective agreements
Employers must write to their staff to let them know about any changes to collective agreements with trade unions or staff associations.
These changes might affect the terms of employees’ written statements, including pay and working hours, whether or not they’re a member of the union or staff association.
Flexibility clauses
Flexibility clauses are terms in a contract that give employers the right to change some conditions of employment, eg relocation.
Employers can only use flexibility clauses to make reasonable changes. For example; An employer couldn’t use a flexibility clause to insist on an employee moving to another country to work with 1 week’s notice!
Changes of employer
If someone starts working for a different employer, they’ll normally have to be given a new written statement within 2 months.
However, if the name of a business changes or there’s a new employer but no other changes in terms and conditions, the employer doesn’t need to issue a new written statement. They still need to write to their staff about the changes within a month.
Disciplinary measures
Sometimes changes to an employee’s terms and conditions, like a demotion, can happen as a result of a disciplinary measure.
Employers should make sure the staff handbook or intranet site contains information about how this could happen in the section dealing with disciplinary procedures. (See more on
Dealing with problems
Problems can arise if:
- an employer tries to change a contract without agreement, or re-employs someone on new terms and conditions
- there is a breach of contract where one of the terms in a contract is broken (eg an employer doesn’t pay agreed wages or employees don’t work agreed hours)
Solving disputes
Employers and their staff should try to solve disputes about contract changes things by talking informally or through mediation.
Employers (and employees) can also get FREE advice from Acas (Advisory, Conciliation and Arbitration Service).
Acas Helpline
Telephone: 0300 123 1100
Monday to Friday, 8am to 8pm
Saturday, 9am to 1pm
If the problem can’t be solved, employers or employees may have the right to take legal action. It’s important to get advice first because legal action can be expensive. Employee trade union members may be able to get legal advice from their union.
Making a change without agreement
If an employer makes a change to a contract without getting agreement (including by using flexibility clauses unreasonably), employees may:
- have the right to refuse to work under the new conditions
- say that they’re working any new terms under protest, and are treating the change as a breach of contract
- resign and claim constructive dismissal
- be able to take a case to an employment tribunal (known as an Industrial Tribunal in Northern Ireland.)
If an employee disagrees with new terms and conditions but doesn’t say or do anything, this may count as agreeing to the changes.
Re-employment on new terms and conditions
Employers may, as a last resort, end a contract and re-employ someone on new terms and conditions.
Employers who are dismissing employees must follow the legally required:
- redundancy procedure in England, Wales and Scotland
- statutory minimum dismissal in Northern Ireland
- breach of contract
- unfair dismissal
Breach of contract claims
If an employee claims breach of contract and they can’t solve things informally with their employer, they may be able to take their case to a civil court or an employment tribunal (or an industrial tribunal in Northern Ireland).
Their employer may be able to make a counter-claim.
Claims and counter-claims can only go to a tribunal if they:
- are related to an employment contract issue
- still haven’t been solved when the employee ends their employment
Time limits
Usually, employees must make a claim to a tribunal within 3 months of ending their employment. The employer gets 6 weeks from receiving a copy of the claim to decide whether to make a counter-claim.
Compensation limits
If the tribunal agrees with the employee’s claim, they may award compensation. This can only be for financial loss (eg non-payment of wages), up to a maximum of £25,000.
Read about dismissing staff and staff disciplinary procedures...
<<Back to Employment Contracts & Statement of Particulars
<<Back to Employing Staff
<<Back To Grow
