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How to change the terms of existing employment contracts

A guide explaining how employers can lawfully change the terms of existing employment contracts, including consultation, agreement, dismissal and re‑engagement, and discrimination risks.

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By Nick Robertson | Brightmine editor: Susie Munro

Employers may wish to change employees’ terms and conditions of employment for a number of reasons. For example, it might be necessary to reduce levels of benefits if the organisation is facing financial difficulty, or to change employees’ duties in the context of a restructure or to reflect developments in the employer’s business.

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  • The reasons for the change
  • Timing considerations
  • Code of practice on dismissal and re-engagement
  • The risk of discrimination
  • TUPE considerations
  • Can the employer make the change unilaterally?
  • Operating a contractual clause that authorises the change
  • Obtaining express agreement to the change
    • Collective bargaining
    • Communication and individual consultation
  • Implementing the variation with consent
  • Dismissal and re-engagement
    • Collective consultation
    • Individual consultation on dismissal
    • Implementing dismissal and re-engagement
    • Reform of rules on dismissal and re-engagement – January 2027

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Latest updates

Updated to reflect that the maximum protective award for failure to consult collectively doubles from 6 April 2026, under the Employment Rights Act 2025. The collective consultation duty can apply when an employer proposes to dismiss and re-engage employees to change their contract terms.

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About the author

Nick Robertson

Nick Robertson is a partner and head of employment in London at global law firm Mayer Brown.

About the author

Susie Munro, Senior legal editor at Brightmine

Susie Munro
Senior Legal Editor, Brightmine

Susie has over 20 years’ experience as a solicitor, writer and legal editor. She is responsible for the Brightmine How to guides and FAQs and also works on the Employment law cases.

Susie joined the Brightmine editorial team in 2009 having previously worked for Age Concern England, where she advised on and wrote about age discrimination and mandatory retirement.

After obtaining an LLB in law from Sussex University, then completing the Legal Practice Course at Bournemouth University, Susie qualified as a solicitor in 2004. She specialised in employment law, working in private practice for a firm in Birmingham.

Connect with Susie on LinkedIn.

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