Changing an Employment Contract in Canada: What You Need to Know

Employment contracts are an essential part of the hiring process in Canada. They lay out the terms and conditions of employment, including job duties, salary, benefits, and more. Sometimes, however, circumstances change, and employers may need to modify the terms of an employee`s contract. In this article, we`ll explore what you need to know about changing an employment contract in Canada.

When can an employment contract be changed?

The answer to this question is not straightforward. Whether or not an employment contract can be changed depends on several factors, such as the terms of the contract, the nature of the changes, and whether or not the employee agrees to the changes.

In general, employers can make changes to an employment contract if they have a valid reason to do so. For example, if the company is restructuring, they may need to modify the job duties of some employees. Similarly, if the employee`s role has evolved over time, the employer may need to adjust the contract to reflect their new responsibilities.

It`s essential to note, however, that employers cannot make changes to an employment contract unilaterally. That is, they cannot simply impose new terms on the employee without their agreement. Instead, both parties must agree to any modifications.

How to change an employment contract

If you want to change an employment contract in Canada, there are a few key steps to follow. They include:

1. Review the current contract: Before making any changes, review the employee`s current contract to ensure you understand the terms and conditions.

2. Discuss the proposed changes: Sit down with the employee and discuss the proposed changes. Explain why the changes are necessary and give them an opportunity to ask questions.

3. Draft a new contract: If the employee agrees to the changes, draft a new contract that reflects the agreed-upon modifications.

4. Obtain the employee`s signature: The employee must sign the new contract to indicate their agreement to the changes. This signature makes the new agreement legally binding.

5. Keep a copy of the original and new contracts: Keep a copy of both the original contract and the new agreement on file. This documentation is essential if any legal issues arise in the future.

Final thoughts

Changing an employment contract in Canada must be done with care and attention to detail. Employers cannot make unilateral changes, and both parties must agree to any modifications. By following the steps outlined in this article, you can modify an employment contract while ensuring all parties are informed and protected.