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Modifying employment agreements | Part 1

Regular employment law applies to all employment relationships – regardless of the circumstances that we find ourselves in. This includes anything that has been agreed to in an employment agreement.

Employers and employees may be considering a variety of changes including a reduction in hours and/or remuneration. These changes require good faith and following a process, including consulting with employees and their representatives, providing time to respond to proposals and then considering the employees comments. In the current situation, there may be circumstances where consultation on changes can be truncated if the employer genuinely needs to make rapid adjustments to cope with their circumstances due to COVID-19, but truncated processes must still occur in good faith, and provide opportunity for employees to seek advice.

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