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Changing and Terminating an Employment Contract



Express & Implied Terms

The above terms are all expressly agreed and are classed as ‘express’ terms. However, employment contracts also contain ‘implied’ terms which are:

- to maintain trust and confidence through co-operation

- to act in good faith towards each other

- to take reasonable care to ensure health & safety in the workplace


Statutory Rights

All employees are entitled to statutory rights and must be honoured by the employer. Such rights include equal pay, notice periods, maternity/paternity leave, flexible working, and redundancy pay.

You can read up on these areas by visiting our Business Law Portal:

Changing the Employment Contract

An employer must get consent from the employee if they wish to change the employment contract. If the employee agrees, a new contract can be formed (verbal or written). This is common for, say, a change in job description, hours of work, and pay – such changes may or may not be in favour of the employee.

If an employer changes an employee’s contract without prior consent, the employer can be land themselves in deep trouble with an employment tribunal. However, in some cases, if the employer can justify (legally and fairly) the reason why they have changed the employee’s contract, they can escape legal action.

The original contract may have a section detailing on what grounds the contract can be changed. It may state that both parties must agree, or it may state that the employer has exclusive rights to change the contract. However, employees are still liable to take action if they disagree with any changes that have a significant effect.

Dismissing an employee for failing to accept new changes can be grounds for unfair dismissal.

Terminating the Employment Contract

An employment contract can be terminated legally if the employer or employee gives the appropriate notice. If the contract is being terminated due to misconduct of the employee, the employer must be sure that they have followed the correct dismissal procedure.

Employers must also be aware that they are terminating the contract on legal grounds otherwise they can be faced with legal action for unfair dismissal.

If an employee terminates the contract without the appropriate notice, the employer has a right to claim damages against the employee.

For more details visit our Sacking, Dismissal & Redundancy article:

Consult Legal Advice

Employment is a legislation minefield and you should use this article as a guide only. Like all legal decisions, it is best to consult professional legal advice to avoid making mistakes that you cannot take back.

FREE Employment Contract

To view a working example of an employment contract:

 

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Visit our Business Law Portal for articles on a range of employment, business & internet law.




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