Changes to terms and conditions

Contractual terms between an employer and an employee are essentially an agreement between the two parties and any changes to those terms must also be agreed by both parties. Sometimes an employer decides to change those terms and, when the employee doesn’t agree, tries to impose the new terms unilaterally (without agreement).

There are three ways in which an employer’s unilateral variation of contract amounts to a dismissal:

fire and rehire: the employer gives notice to end the employment contract and at the same time offers a new contract on less favourable terms;

deemed dismissal: the employer introduces significantly different terms without giving notice to end the contract and expects the employee to carry on working under the new terms;

constructive dismissal: the employer introduces new terms in a way that breaches trust and confidence and the employee resigns as a result.