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All employees have an employment contract with their employer, although it might not
be in writing. If you don’t have a written employment contract, your contract would have
automatically been created when you started to work for your employer.
• verbally agreed
• in a written contract, or similar document
• in an employee handbook or on a company notice board
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• in an offer letter from your employer
• required by law, for example, your employer must pay you at least the minimum wage
• in collective agreements (see below)
• implied terms (see below)
If there's anything in your contract that you're unsure about, or which is confusing, ask your employer to
explain it to you.
It should be made clear what is a legally binding part of your contract and what is not. The legal parts of a
contract are known as 'terms'.
If either you or your employer breaks a term of the contract, the other is entitled to sue for breach of
contract.
Collective agreements
Employers sometimes make agreements with a trade union or staff association. These are know as
'collective agreements'. Your contract should make it clear which agreements apply to you and who can
negotiate on your behalf. These agreements can apply to you even if you're not a member of the trade
union or staff association.
• how seriously it has been treated (has the employer acted like they have a choice?)
• how clear it is (has the employer treated the matter differently each time?)
• how long it has been in place
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What or who can change a contract of employment?
Either you or your employer might want to change your employment contract. However, neither you or your
employer can change your employment contract without each other's agreement. Changes should normally
be made after negotiation and agreement.
If a collective agreement makes a change to employment contracts, the change will still apply to you even
if you are not a member of the trade union or staff association.
An employer's need
An employer sometimes needs to make changes to working practice because of economic circumstances.
The business may need to be reorganised, moved to a new location, or there may need to be changes
because of new laws or regulations. Things that might change include:
• rates of pay
• working time (for example, longer or shorter hours, different days)
• your duties and responsibilities
• the duties and responsibilities of your immediate boss
• the location of where you work
Your employer might need to make a change to correct a mistake in drawing up the contract. Depending on
the situation, it might be in your best interests to allow the mistake to be corrected.
In some circumstances, action like a demotion or a pay cut might be authorised as a disciplinary measure.
Employees' need
Employees might also ask to change the terms of their contract. For example, you might want:
• better pay (you don’t have an automatic right to a pay rise, unless it’s in your contract)
• improved working conditions
• more holiday
• different working hours
• to work flexible hours
• to work part-time
Flexibility clauses
Your employment contract may include 'flexibility clauses'. These give your employer the right to change
certain conditions (for example, shift patterns) or there may be a 'mobility clause', allowing changes to your
job location.
A flexibility clause that is vaguely worded - for example, 'the employer reserves the right to change terms
from time to time' - cannot be used to bring in completely unreasonable changes. This is because there's an
'implied term of mutual trust and confidence' in all contracts that requires the employer not to act
completely unreasonably. There is more information about implied terms in the 'Employment contract terms
article'.
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Do changes have to be in writing?
Agreed changes don't necessarily have to be in writing. However if they alter the terms in your 'written
statement of employment particulars', your employer must give you another written statement showing
what has changed within a month of the change.
Changes can be agreed directly between you and your employer, or through a 'collective agreement'
between your employer and a trade union. This might be allowed by your contract even if you're not a union
member.
• your employer’s name changes without any change to who your employer is (for example if the
company is renamed)
• your employer changes, but your job continues unaffected (such as during protected business
transfers, also known as TUPE)
In these circumstances, you are entitled to be given individual written notice of the change at your
employer’s earliest opportunity. This must be no later than one month from the date of the change.
Breach of contract
Both employers and employees can be in breach of a contract of employment - so it's
important to know what this is and what you should do if either you or your employer
breaches your contract.
Mediation
Before taking legal action, you could try other ways of resolving the dispute if your employer agrees. For
example, you might try mediation through Acas (or the Labour Relations Agency if you work in Northern
Ireland).
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Legal action
If you can't sort out the problem with your employer, you can decide to take legal action. Think carefully
before taking any legal action against your employer. Ask yourself what you want to achieve and how much
it will cost.
Remember that you'll only get compensation (called 'damages') if you can prove real financial loss (for
example, if your employer doesn't pay your wages) - there's no compensation for distress or hurt feelings.
Also remember that taking legal action might prompt your employer to take out a counter-claim against you
if they feel they have one.
If you are a member of a trade union, it would be a good idea to speak with them before taking any legal
action, as some unions provide a legal advice service for their members. Otherwise, you could talk to a
solicitor, or discuss your case with an Acas advisor.
Employment Tribunal
If you do decide to take legal action, it can either be through an Employment Tribunal (Industrial Tribunal in
Northern Ireland) or through a civil court.
To make a breach of contract claim through an Employment Tribunal, your employment must have ended.
There are restrictions on the types of claim that can be made (for example, you cannot make a personal
injury claim through the Employment Tribunal).
Employment Tribunals are cheaper and often quicker than the civil courts.
Civil courts
To make a claim while you are still employed you will normally go through the small claims track of the
county court or other civil court.
The time limit for making your claim to a civil court is longer than the time limit for complaining to an
Employment Tribunal. The award that a civil court could make is unlimited.
Is it breach of contract to withdraw a job offer, or to turn it down, after it has been accepted?
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Yes. The contract is made as soon as you accept the offer, and both sides are bound by the terms until the
contract is terminated.