Vary the terms of a contract where there is a term authorising the variation

Key points

  • An employer that wishes to vary employees' contractual terms and conditions should check the contracts to see if there is a clause that authorises the variation.
  • Even where there is a variation clause, the employer should exercise caution in relying on it and should ensure that the clause covers the specific change that it proposes to make.
  • The employer must take steps to ensure that it does not act unreasonably in exercising the clause.

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