Employment Contracts, Notice and Changing Terms

What is an employment contract?

An employment contract is the agreement between an employer and an employee. It sets out the rights, responsibilities and conditions that apply to the job. A contract can exist as soon as a job offer is accepted, even if the employee has not signed a formal written document.

Your contractual terms may be found in several places, including:

• A signed employment contract or offer letter.
• Your written statement of employment particulars.
• A staff handbook or workplace policy, where its provisions form part of the contract.
• A collective agreement negotiated with a recognised trade union.
• Terms agreed verbally or implied by law, established workplace practice or what is necessary to make the agreement work.

Not every handbook rule or workplace policy is automatically a contractual term. Whether a particular provision is legally binding depends on the wording, the documents and the circumstances.

What should your written employment information include?

Employers must provide a written statement of employment particulars containing specified information. The principal statement is generally due on the first day of employment, with certain additional particulars provided in a wider statement within two months.

Key information includes:

• Your job title or a description of your work.
• Your start date and, where relevant, the date continuous employment began.
• Your pay rate and how often you are paid.
• Your normal hours, working days and whether they can vary.
• Your holiday entitlement and holiday-pay arrangements.
• Your workplace or the arrangements for working at different locations.
• Your notice period and any applicable probationary period.
• Information about sick pay, other paid leave, pensions and relevant procedures, as required.

A written statement is not necessarily the whole contract. It is evidence of key employment terms, but other documents and legally implied terms may also matter. Read the official GOV.UK guidance on written statements.

Can your employer change your contract without your agreement?

Usually, an employer cannot simply impose a change to an agreed contractual term. Changes normally require agreement between the employer and employee, although the position depends on the contract, the type of term and any applicable legal rights.

Common proposed changes include:

• Reducing salary, commission or other contractual pay.
• Changing working hours, shifts or days of work.
• Moving the workplace or requiring relocation.
• Changing job duties, responsibilities or reporting lines.
• Reducing contractual holiday or benefits.
• Changing notice requirements or other termination terms.

An employer may have some flexibility under a valid contractual clause. However, the wording and scope of that clause matter. A broad statement that the employer can change terms does not automatically authorise any change, regardless of its impact or reasonableness.

What if your contract has a flexibility clause?

A flexibility clause may permit specific changes, such as adjusting shifts or changing a work location in defined circumstances. Check exactly what it covers, whether any conditions apply and how much notice must be given.

Even where a clause exists, an employer should exercise it fairly and reasonably. Relevant considerations may include the wording of the clause, the extent of the change, the employee’s circumstances and whether consultation is appropriate. A clause should not be assumed to give an employer unlimited power.

How should a proposed contract change be handled?

Employers should explain the proposed change, why it is being considered and how it may affect employees. Consultation can help identify concerns, alternatives and practical difficulties before a decision is made.

If your employer proposes a change, consider these steps:

1. Ask for the proposal in writing. Identify exactly which terms would change and when the change is intended to start.
2. Compare the proposal with your current terms. Review your contract, written statement, offer letter and relevant policies.
3. Ask for the reason. Understand the business or operational explanation and whether alternatives are available.
4. Explain your concerns. Set out the practical or financial effect and suggest alternatives if appropriate.
5. Check whether the change has been agreed. Do not assume silence or continued work will always resolve the legal position.
6. Keep records. Save the original contract, proposed changes, meeting notes and related correspondence.

Where changes are agreed and affect the written statement, the employer generally must provide an updated statement or written notification within one month. There may be separate rules for certain arrangements, including collective agreements.

For further guidance, see GOV.UK: changing an employment contract and Acas: changes to employment contracts.

What if your employer has already changed your terms?

If a change has already been introduced, do not assume that it is automatically valid or automatically unlawful. The answer may depend on whether you agreed, whether the contract permitted the change, how the employer introduced it and what you did afterwards.

Start by identifying the exact term that changed and gathering the documents that show the original arrangement and the new one. Then consider raising the issue with your manager or HR in writing.

Depending on the circumstances, possible issues may include:

• A disagreement about whether a contractual variation was agreed.
• A potential breach of contract.
• A reduction in pay that may raise an unlawful-deduction issue.
• Discrimination or another statutory-rights issue, if the change affects a protected right or is connected with unlawful treatment.
• A wider workplace dispute that may require a grievance or another formal process.

These are possible routes, not automatic outcomes. Different claims have different legal tests and time limits. If the change affects pay, working location, hours or job security, obtain advice before taking a step that could affect your position.

What notice period must you give when resigning?

If you resign, the notice period in your contract will usually determine how much notice you must give. Your employer cannot generally require you to give less notice than the contract requires unless the parties agree otherwise. The statutory minimum notice an employee must give is normally one week after at least one month of employment, but a contract may require longer notice.

Check your contract for:

• The required length of notice.
• How notice must be given, such as by email or letter.
• Who must receive the notice.
• Whether any special provisions apply during probation.
• Whether the contract provides for payment in lieu of notice or garden leave.

Unless your employer agrees to release you earlier or another legal basis applies, leaving before your contractual notice period ends could create a dispute about breach of contract. The consequences depend on the contract and circumstances.

What notice must your employer give to dismiss you?

An employee may be entitled to contractual notice or statutory minimum notice, depending on the circumstances. An employer generally must provide whichever applicable entitlement is more favourable to the employee, subject to the relevant rules and any lawful exception.

For employees who have worked continuously for at least one month, the statutory minimum notice an employer must give is generally:

These are general statutory minimums, not a substitute for checking the contract. A contract may provide longer notice. Different rules may apply in particular situations, including some cases involving gross misconduct, fixed-term contracts and other forms of termination.

Read the current GOV.UK guidance on giving notice and check the relevant legislation if the notice entitlement is disputed.

What happens if you are dismissed without the correct notice?

If an employer ends your employment without providing the notice you are entitled to, you may have a claim for wrongful dismissal or breach of contract, depending on the facts and the legal route available. A payment in lieu of notice may be lawful if the contract allows it or the parties agree to it.

Wrongful dismissal is a contractual issue. It is different from unfair dismissal, which concerns whether the dismissal was fair under employment law and whether the relevant qualifying conditions and exceptions apply. A person may have one issue, both issues or neither, depending on the circumstances.

Keep the dismissal letter, contract, payslips, notice correspondence and any calculation of the final pay. If the employer says no notice is due, check the contractual wording and the legal basis for that position.

Can you resign without working your full notice?

You can ask your employer to agree to a shorter notice period or an earlier leaving date. If the employer agrees, confirm the arrangement in writing, including the final working day and any pay or holiday arrangements.

If your employer does not agree, leaving early may be a breach of contract unless there is another legal basis for doing so. Do not assume that a difficult working relationship or a disagreement about changes automatically removes your notice obligation.

If you believe your employer has seriously breached the contract and you are considering resigning in response, take advice before acting. In some circumstances, a resignation may be relied on as part of a constructive dismissal claim, but the legal requirements are specific and the outcome is not guaranteed. Resigning first and investigating the position later can create significant risks.

What is garden leave or payment in lieu of notice?

Garden leave is an arrangement where an employee remains employed during their notice period but is instructed not to attend work or carry out some or all normal duties. Pay and benefits usually continue in accordance with the contract and applicable rules.

Payment in lieu of notice (PILON) means the employment ends without the employee working some or all of the notice period, with a payment made instead. Whether an employer can require PILON depends on the contract and circumstances.

Check the wording carefully. The contract may address pay, benefits, holiday, restrictions on working for another employer and when employment formally ends. Tax treatment can also depend on the payment and the circumstances.

Do different rules apply to fixed-term contracts?

A fixed-term contract normally ends on the date or event specified in the agreement. Whether it can be ended early depends on the contract and the relevant legal rules.

If the contract permits early termination, the notice provisions should be checked. If it does not, ending the contract early may raise a breach-of-contract issue unless another legal basis applies. Employees on fixed-term contracts may also have rights relating to notice, dismissal, redundancy and less favourable treatment, depending on the circumstances.

See GOV.UK guidance on renewing or ending a fixed-term contract.

What if you are asked to sign a new contract?

Read the proposed contract against your existing terms before signing. Pay particular attention to changes in salary, hours, location, duties, benefits, notice, restrictive covenants, probation and any clause allowing future variations.

Ask for time to review the document and raise any unclear or unfavourable provisions. If the new contract is intended to replace an existing agreement, check whether it changes your continuity of employment or affects accrued rights. A change of document does not necessarily mean every existing right disappears, but the wording and circumstances matter.

Do not sign solely because you have been told that the change is routine. If you are unsure about the effect, obtain advice before accepting it.

What evidence should you keep in a contract or notice dispute?

Organise the relevant documents so that you can establish what was agreed, what changed and when. Useful evidence may include:

• Your original contract, offer letter and written statement.
• Any revised contract or proposed variation.
• Emails or messages discussing the change or notice period.
• Staff handbook provisions or policies referred to in the contract.
• Pay records, payslips, commission statements and holiday records.
• Resignation or dismissal letters and proof of when notice was given.
• Meeting notes, grievance correspondence and any written response from the employer.
• A timeline of the key events, decisions and conversations.

Keep copies securely and avoid removing confidential business information or other people’s personal data without authority. If the dispute concerns verbal terms, make a dated note of what was said, who was present and any later conduct that may help establish the agreement.

Common mistakes to avoid

• Assuming everything must be in one signed document. Employment terms can arise from different sources.
• Assuming your employer can change anything. A flexibility clause has to be read in context and does not necessarily permit every proposed change.
• Ignoring a new contract or variation letter. It may change important rights and obligations.
• Resigning before checking the consequences. Leaving without the required notice or resigning in response to a breach can have legal consequences.
• Confusing wrongful and unfair dismissal. They involve different legal questions and requirements.
• Relying on a verbal promise without making a record. Verbal agreements can matter, but proving their terms may be more difficult.
• Waiting too long to raise a dispute. Some employment claims have strict deadlines, and internal discussions do not necessarily pause them.

Examples of common contract problems

Example 1: A sudden reduction in hours. An employee is told their weekly hours will be reduced immediately. They should check whether the contract allows the change, ask for the proposal and reason in writing, and clarify whether they have agreed to the variation.

Example 2: A longer notice period in a new contract. An employee receives a revised contract with a longer notice period. Before signing, they should compare the old and new wording and ask when the change would take effect and whether it applies to existing employees.

Example 3: Resigning for a new job. An employee wants to leave earlier than the notice period in their contract. They can request an agreed early release, but should not assume that handing in a resignation automatically cancels the remaining notice obligation.

Example 4: Dismissal with no notice pay. An employee is dismissed and told they will receive no notice payment. They should check the contract, the reason for dismissal and any applicable notice exception before deciding whether the payment is owed.

These are illustrative situations, not real client cases. The correct legal position depends on the documents, facts and applicable law.

Frequently asked questions

Does an employment contract have to be signed?

No. An employment contract can exist when a job offer is accepted, even if there is no signed written contract. The terms may be contained in several documents, agreed verbally or implied by law. Employers still have duties to provide the required written statement of employment particulars.

Can my employer change my working hours without asking me?

Usually, a contractual change requires agreement unless the contract or applicable law permits it. A flexibility clause may allow certain changes, but its wording, scope and use matter. Check the contract and seek advice if the change is disputed.

How much notice do I have to give when resigning?

Your contract normally sets the notice period. The statutory minimum notice an employee must give is generally one week after at least one month of employment, but your contract may require more. Check the wording before giving notice.

How much notice must my employer give?

For employees with at least one month of continuous employment, the statutory minimum is generally one week, increasing by one week for each complete year of service from two years, up to a maximum of 12 weeks. Your contract may provide longer notice, and exceptions can apply.

Can I leave my job before my notice period ends?

You can ask your employer to agree to an earlier leaving date. If they do not agree, leaving early may breach your contract unless another legal basis applies. Check the terms and consequences before deciding.

What happens if my employer changes my contract without agreement?

The legal effect depends on the original contract, any flexibility clause, the circumstances and whether you agreed to the change. You may wish to raise the issue in writing, keep records and obtain advice about potential contractual or statutory claims.

Can I refuse to sign a new employment contract?

You can raise concerns and ask for clarification before signing. However, refusing a proposed change may lead to a workplace dispute, and the employer’s options depend on the circumstances and applicable law. Obtain advice if the proposed terms materially affect your rights.

What is the difference between wrongful dismissal and unfair dismissal?

Wrongful dismissal usually concerns a breach of the employment contract, such as failure to provide the required notice or notice pay. Unfair dismissal concerns whether the employer’s dismissal was fair under employment law and whether the legal requirements for a claim are met.

Does a written statement count as my entire contract?

Not necessarily. A written statement records required particulars, but the contract may also include other documents, agreed verbal terms, collective provisions and implied terms. The full set of relevant terms must be considered.