Fundamental Changes Require Consideration

by | May 4, 2023 | Employment Law

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.

This this information is not intended to be a substitute for legal advice. Individuals should consult with their personal legal professional regarding the information provided herein.

<a href="" target="_self">Anne-Marie Mizzi</a>

Anne-Marie Mizzi

Anne-Marie started her legal career at our Summerland office May 2021. She is be a recent Juris Doctorate graduate from Thompson Rivers University. While at Thompson Rivers University she participated in the Law Rugby Club and Access to Justice Club. She earned her Bachelor of Arts Degree in Political Science from Saint Francis Xavier University in 2018. While at Saint Francis Xavier University she was the vice president of the Political Science Society and was a member of the Model United Nations team. Wherever she goes she likes to be involved in the community and looks forward to participating in what Summerland has to offer. She is also an animal lover having a cat of her own!