Unfavourable contract terms PDF Print E-mail
Category: Employees Area

It is always best to draw up a contract of employment rather than to do this verbally; as this will prevent any disputes arising from what was said or not said when the employee was taken on.  Also, written contracts should be worded clearly to avoid ambiguity or misinterpretation.  The document should be signed and dated by both parties; this contract should be given to the employee, but a copy kept on file for your own reference.

The nature of work is constantly evolving.  Your original job may now be completely different form the position you occupied when you began employment.  You may have risen through the ranks or the company itself has completely changed focus and operates in a different way necessitating that you do likewise. From the point of view of the employer these terms and conditions may have become obsolete or do not fulfil the objectives of the business.   The current recession has tested even the most robust business model resulting in more and more employers seeking to sweat their assets requiring the employees adapt to these adverse and changing trading conditions.

A well drafted contract of employment will normally entitle the employer to change the terms and conditions of the contract. The courts however, have ruled that this right to change the terms (however well intentioned) cannot be exercised unfettered.   The correct approach, from an employer’s point of view, is to consult with the affected employees, outline the reason for change and seek from them their informed consent to any fundamental change to the contract.  Changes involving minor alterations will not require consent. The courts and tribunals have always permitted this managerial prerogative.

Once you consent to these changes there should be no controversy but if changes are foisted upon you without your agreement and, more importantly, if these changes are fundamental or radical in nature to the terms you operated under previously then this will result in conflict.  An employer who proceeds without consultative or consensual agreement to unilaterally change the terms and conditions of an employee leaves themselves exposed to a claim for constructive dismissal and/ or breach of contract, or in the case of a collective agreement arrangement; strike action.

If there are changes to your contract which you are not in agreement with we can review your contract and advise you if there is a potential breach of contract and what relief can be availed of.

 

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