A contract of employment or an employment contract is a legally enforceable agreement between an employer/labour union and an employee. You can agree to a contract either verbally or in writing. Read this blog to know more.
A contract outlines both sides’ rights, responsibilities, obligations and duties. Changing the contract might result in strikes, discrimination and even legal claims. Before learning the ways in which the Employment Law Contract Changes can affect you. Let’s learn the proper meaning in depth.
What is an contract of employment?
A contract of employment or an employment contract is a legally enforceable agreement between an employer/labour union and an employee. You can agree to a contract either verbally or in writing. A contract outlines both sides’ rights, responsibilities, obligations and duties.
What are Employment Law Contract Changes?
A legal agreement exists when an employee and employer sign an employment contract. Even small changes cannot be made to it by an employer without the consent of the employee or even the employee’s union.
Your employment contract may need to be changed at some point by either your employer or you. Your employment contract, however, cannot be changed without the consent of both you and your employer. Any contract amendments require the consent of both the employer and the employee, or in some cases, a trade union or other employee representatives.
Normally, changes ought to be made with negotiation and agreement. There are three main factors by which you can make changes to your employment contracts, i.e.,
Agreement between you and your employer
Negotiation between the trade union and your employer
Through a modification of long-standing custom and practice.
What Are the Reasons for Changing an Employment Contract?
In the case of Employers
Economic conditions may force employers to make adjustments. Due to new rules or regulations, the company may need to be reorganised, relocated, or undergo other adjustments. Among the things that could alter are:
- Rates of pay,
- Change in working hours, such as longer/shorter hours or different days
- the obligations of your immediate supervisor
- Location of your work and its surroundings
It’s possible that your employer needs to alter the contract to fix an error that was made when it was written. It can be in your best interests to let the error be fixed, depending on the circumstances.
In the case of Employees
It’s also possible for workers to request contract amendments. You could desire:
- better pay (unless it is stipulated in your contract, you do not have an inherent right to a pay increase)
- Better working conditions
- more holidays
- various working hours, flexible hours, and part-time employment
- Work-life balance and flexible scheduling
- vacation incentives
- Working part-time
What to Do if You Want to Change Your Employment Contract?
If you need to amend something in your contract, talk to your boss and explain why.
You cannot insist on modifications unless they are protected by a legal right, such as choosing not to work on Sundays. You might well be able to apply for flexible working rights and adjust your hours.
What to Do if Your Employer Wants to Change Your Contract?
If your employer wants to modify your contract, they should speak with you or your representative (such as a trade union official), give their justifications, and consider other options.
Changes may be negotiated directly between you and your company or via a “collective agreement” between your employer and a trade union. If you’re not a union member, your contract may still permit this. If your employer wants to modify your contract, they should speak with you or your representative (such as a trade union official), give their justifications, and consider other options.
How Do the Employment Law Contract Changes Affect You?
An organisation may get tense when contracts are changed. Risks that could arise if changes are poorly managed include:
- Negatively affecting coworkers
- Legal claims, such as those involving contract breaches or constructive dismissals
- A decline in commitment and performance if workers oppose the changes or believe they were not given a chance to weigh in on important decisions
- Elevated stress levels or absence
- Illegal discrimination, such as when adjustments are made that only affect a certain group of employees but disfavour others who possess a particular “protected trait.”
- Reputational harm to an organisation or brand makes it difficult to recruit new personnel.
- Valuable people depart an organisation if you propose a change they do not support or agree to.
- If there is a union, there may be strikes or other forms of industrial action.
If you think you might need to suggest a contract adjustment, how you go about doing so will likely depend on:
- The number of affected workers or employees
- if your company is affiliated with a recognised trade union or other
- standardised procedures for employee consultation
Whenever making modifications to terms and conditions outlined in a “collective agreement” with a recognised trade union, you are required by law to first speak with the union. For more information related to the creation of employment agreements, get in touch with the experts of Vakilsearch today.
- Should Contracts Of Employment Be Legal In India?
- Difference Between an Employment agreement and an Employment Contract
- Rules of Contract of Employment in India