Can Employers Change Your Contract Without Your Consent? Let's Discuss Salary Cuts and Perks Adjustments

Can an Employment Contract Be Changed Unilaterally?

Can an employment contract be subsequently changed by the employer unilaterally to the disadvantage of the employee, such as reducing their salary or perks? Also, if the company does so, does it need to obtain the acceptance of the employee? If yes, then why don't we take their consent when giving an increment to the employee?

Dear Shraddha, the first thing I would say is that the contract between employees and employers works in many ways for both parties, and neither of them can breach it without mutual understanding or consent. Neither the employer can make changes without prior consent from the employee, nor can the employee breach the employment letter. If one party does breach the contract, they have to compensate for this. They cannot change it without your consent. If they make changes to your contract without your consent, you can sue them to honor it.

Understanding Contract Amendments

But tell me something, what does your contract letter say about amendments or changes to the contract? Does the contract state that it is subject to changes and amendments by the principal/employer? If the contract is subject to changes or if there is a clause that favors your employer, they may be able to make such changes without notice. However, at the same time, you probably have the ability to reject or accept these changes.

Therefore, you also have to be wary of the clauses in your contract that allow your employer to make a lot of changes to your agreement at their whim. To understand them, you must go through your employment contract again.

Regards