Introduction

A contract of employment is an agreement between two parties – the employer and the employee. This means that any change to the employment contract must be agreed by both parties.

Employment contracts can be changed lawfully:

• if both parties agree;

• if the employment contract expressly permits the employer to make changes; and

• through collective bargaining.

If an employer insists on changing terms without agreement, this is a unilateral variation of the contract, and the employee may have a claim for breach of contract, or for unlawful deduction of wages (section 13 ERA 96).

The special position where contracts are changed as a result of a TUPE transfer is looked at in Chapter 8.