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Variation of contracts

A guide explaining when and how employment contract terms can be changed, including agreement, consultation, dismissal and re‑engagement, and legal risks for employers.

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By Sue Johnstone | Updating author: Lilia Dangi

Neither party has an automatic right to change contract terms, even when they are out of date or inconvenient.

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  • No implied power to change the terms
  • Discretionary and flexible terms
  • Machinery to change the terms
    • After consultation
    • After notice
    • A right to make any reasonable change
    • Incorporating collective agreements
    • Incorporating handbooks and schemes
    • Duty to reject
    • Mutual trust and confidence
  • The agreement of the parties
  • The effect of imposing new terms
    • Damages for breach
    • Repudiation
    • Unfair constructive dismissal
    • A claim for unpaid wages
  • Redundancy
  • Dismissal and re-engagement
    • Breach of contract
    • Unfair dismissal
    • Redundancy consultation
  • Transfers of undertakings
  • Future developments

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Latest updates

Updated to reflect the Government’s consultation on its proposals relating to fire and rehire practices.

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About the author

Sue Johnstone

Sue Johnstone is a freelance trainer and writer on employment law.

Sue is an experienced writer on all aspects of employment law. She specialised for many years in discrimination law and equality practice and was editor of Equal Opportunities Review from 2002 to 2017.

She has many years’ experience as a university lecturer on employment law, and is a freelance tutor on CIPD employment law courses.

Sue’s experience of employment law in practice includes more than 25 years sitting as an employment tribunal member.

About the author

Lilia Dangi
Legal Editor, Brightmine

Lilia joined the Employment Law and Compliance team as a Legal Editor in March 2025.

Lilia has over 10 years’ experience in HR, with a strong background in employment law, compliance, and governance. She has worked across major organisations including Deloitte, Santander, and Unilever, advising on complex employee relations matters, immigration and change management.

Lilia also brings experience as a CIPD tutor, delivering modules on employment law and workforce planning. She holds a Law degree, a Law Masters in Corporate Governance, and is a certified Company Secretary and CIPD Associate.

Connect with Lilia on LinkedIn.

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