As an employer sometimes you need to fundamentally change an employee’s conditions of working that detrimentally affect an employee. This can include changing reducing hours of work required or reducing compensation provided. If fundamental changes are required a new employment contract should be created or an addendum added to the already existing employment contract.
When an addendum or new contract is created though it has been enforced by the court recently in Matijczakv Homewood Health Inc., 2021 BCSC that consideration must be given to the employee when changes are detrimental to the employee. This is due to the fact that the court has found that detrimental changes can reflect an unequal bargaining power between the employer and employee. If consideration is not provided or sufficient enough the new contract or amendment can be found unenforceable.
Additionally, consideration implies that the fundamental change has been mutually agreed upon between the employer and employee. Without consideration an employee potentially could bring a claim against the employer for constructive dismissal if the fundamental changes were never agreed to. As an employer it is important to carefully consider making any fundamental changes to an employee’s conditions of employment. Feel free to contact Avery Law Office if you are requiring advice regarding this matter.
