Change of employment terms

What it means

A change in working conditions is an amendment to the content of the employment relationship: the agreed type of work, place of work, start date, pay terms or working hours. These terms form part of the employment contract, so the employer cannot change them unilaterally.

Under the Labour Code, the content of an employment contract is changed by written agreement between employer and employee. The employer informs the employee of changes not requiring agreement, such as amendments to internal rules that affect them. Changing essential terms without the employee’s consent is invalid.

The exception is transfer to other work in cases listed by law. The employer must or may transfer an employee, for instance on health grounds based on a medical opinion, during pregnancy where the work is hazardous, or during downtime. Rules on pay and information still apply.

How it works in practice

For changes such as a pay rise, a new position, moving to part-time or introducing home working, we prepare a written amendment to the employment contract for clients. Both parties sign it and the employee receives a copy. Payroll is updated only on that basis.

If the employee does not agree and the employer needs the change for organisational reasons, such as abolishing a position, the only route may be dismissal for redundancy with an offer of other work. The procedure must meet the statutory conditions, including the duty to offer alternative work and severance pay.

When changing base pay, minimum pay entitlements and the internal pay policy must be respected. When changing working hours, for example from full-time to part-time, holiday entitlement and pay change proportionally.

What to watch out for

The most common mistake is changing terms only verbally or by email. In a dispute it is then hard to prove what was agreed, and the original contract terms apply. Every material change should have a written amendment.

A de facto change without a formal amendment is also risky, for example when an employee works for a long time at a different place or in a different role than stated in the contract. In a labour inspection or after an accident, this can cause problems with liability and pay entitlements.