What if the employer gives notice to end the contract and imposes new terms?

An increasing number of employers are imposing unilateral contract change by giving notice to end the employment contract, while simultaneously offering replacement contract terms that contain the desired change.

An employer who ends an existing employment contract and offers new terms is not in breach of contract as long as full legal notice of termination is given (Kerry Foods v Lynch [2005] IRLR 680). This is because by giving notice to end the contract, the employer is complying with the contract rather than breaking it.

However, it is still a dismissal and employees with at least two years’ service will be able to claim unfair dismissal. For more information see pages 295-297.