Can My Employer Change My Employment Contract?
Updated: Oct 10
Can my employer change my employment contract? It is a common worry. A change in working hours, pay or duties can be unsettling. This guide explains when an employer can change your contract, when they need your agreement and how to protect yourself.
Work with an employment lawyer if you want advice on your own contract and your employment rights.
What is an employment contract?
Your employment contract is a legal agreement between you and your employer. It sets out the terms and conditions of your job, including:
your salary or wages
working hours and conditions
job duties
benefits, such as holiday entitlement
Once you and your employer agree these terms, neither side can change them without the other's consent. The government explains the basics of employment contracts on GOV.UK.
The written statement
Employers must give workers a written statement of the main terms of the job. If a term changes, the employer should tell you in writing within a month. Keep this document safe, because it is useful evidence if there is a dispute.
Why do employers change contracts?
Employers may want a contract change for many reasons, such as:
responding to market conditions, for example reducing pay in a downturn
adjusting roles because of restructuring
changing shift patterns to meet business needs
Some changes are reasonable. Others may feel unfair or cause hardship.
Can my employer change my employment contract without my agreement?
In most cases, no. Your employer cannot lawfully change your contract without your consent. If they impose new terms without agreement, it may amount to:
A breach of contract, which lets you take legal action.
Constructive dismissal, if the change is so serious that you feel forced to resign. See our guide to constructive dismissal claims.
When a flexibility clause may allow a change
Some contracts include a flexibility clause, also called a variation clause. It lets the employer make certain changes, such as moving your place of work within a set area. These clauses do not give unlimited power. The employer must use them reasonably and in good faith.
Changes you agree to
You may agree to a change, in words or by your actions. If you keep working under new terms without objecting, an employer may later argue that you accepted them. If you do not agree, say so in writing and say you are working under protest.
Steps to take if your employer proposes changes
1. Understand the proposed change
Ask for the proposed change in writing so that it is clear.
Think about how it affects you. Will your pay or benefits fall? Are your hours longer? Are your duties changing?
2. Check your contract
Read your contract to see what it says about changes.
Look for any flexibility clause. Remember it cannot be used unfairly.
3. Speak to your employer
If you are unhappy, ask for a meeting to discuss your concerns.
Ask why the change is needed and whether there are alternatives.
4. Negotiate or raise concerns
Suggest a compromise that works for both sides. For example, if hours are to be cut, propose a temporary cut instead of a permanent one.
If pay cuts are planned, ask about other benefits that offset the loss.
Keep your communication professional and focused on solutions.
5. Get advice
A trade union representative, if you are a member.
An employment lawyer for legal advice.
ACAS for free guidance in the UK.
Flexible working requests
Sometimes the change comes from you. You can ask your employer for flexible working, for example a change to your hours or your place of work. A flexible working request is a formal way to ask for new terms. Your employer must deal with it reasonably and can refuse only on certain business grounds. Read the current rules on GOV.UK flexible working.
What if you do not agree?
If you refuse the changes, your employer has limited options:
Agreement. Your employer may negotiate and reach a compromise.
Fire and rehire. In extreme cases, an employer may end your contract and offer a new one on the new terms. This is risky for them, because it may lead to a claim for unfair dismissal. There is now a statutory code of practice on this, and the law is changing, so check the current position.
No change. The employer may decide to leave the contract as it is.
Consultation, unions and large-scale changes
If an employer plans a big change that affects many staff, there may be duties to consult. Where a trade union is recognised, the employer may need to consult the union. Rules on collective consultation apply when a certain number of dismissals are proposed. Ask your union or an adviser what applies to you.
Making changes in some circumstances
There are some circumstances where an employer can make changes without a fresh agreement. For example, a contract may allow it, or a change may be a small matter of detail. A change may also follow from the law, such as a rise in the national minimum wage. When an employer wants a change that goes beyond what the contract allows, they need your agreement.
Pay and hours
Pay and hours are core terms. Cutting either is a serious step. An employer who wants to reduce pay or change hours should explain why, consult you and put the proposed changes in writing. You can then decide whether to agree.
Place of work and mobility clauses
Some contracts include a mobility clause that allows the employer to move you within a stated area. If you have no such clause, a move to a distant place of work may need your agreement. Read how the clause is worded, because the details matter.
Job duties
Employers can usually ask for reasonable changes to how you do your job. A big change in role, status or level of responsibility is different. It may need your consent.
Transfers and redundancy
If your business is sold, the TUPE rules can protect your terms and conditions. An employer generally cannot use a transfer as the reason to reduce them. If the employer says your job is at risk of redundancy, different rules apply. Ask what process they will follow and keep notes of every meeting.
If your employer imposes the change anyway
Sometimes the employer simply makes the change and expects you to accept it. You have options, and the right one depends on your situation. You can:
object in writing and say you do not accept the new terms
carry on working under protest while you take advice
raise a formal grievance
in a serious case, resign and claim constructive dismissal
Before you resign, take advice. A claim for constructive dismissal can be hard to prove, and you usually need to act quickly. You may also need a minimum period of service to claim unfair dismissal. An adviser can tell you where you stand.
Putting a change in writing
If you do agree to a change, make sure it is written down. The new terms should say what is changing, from what date and whether the change is temporary. A signed, clear record protects both sides and shows what you agreed.
Protecting yourself
Keep records: save emails, letters and notes of meetings about the proposed change.
Do not feel pressured: take time to review the change before you decide.
Know your rights: employers must consult and act fairly. Sudden or drastic changes without consultation are not acceptable.
Time limits for claims
If you want to bring a claim, strict time limits apply. Most employment tribunal claims must start within three months, less one day, of the problem. You also usually need to contact ACAS for early conciliation first. Speak to an adviser as soon as you can. See our guide to employment tribunal claim steps.
Conclusion
A contract change can be hard to deal with, but knowing your rights helps. Review the proposed change carefully, talk openly with your employer and get advice if needed.
By staying informed, you can protect your interests while keeping a good relationship with your employer.
Frequently asked questions
Can my employer reduce my pay without my agreement?
No. Employers must get your consent before reducing your pay, or they risk breaching your contract.
What if my employer says they will dismiss me if I do not agree?
This could be grounds for an unfair dismissal claim. Speak to an employment lawyer straight away.
Do I have to sign a new contract if I do not agree with the changes?
No, you are not required to sign a new contract. But talk to your employer about your concerns before you decide.
