Can my employer make changes to my employment contract without my agreement?

In Plain English

Generally, your employer can't unilaterally change your employment contract, especially if it negatively impacts you. However, there are some exceptions.

  • Enterprise Agreements: If you're covered by an enterprise agreement, it can be varied with the agreement of the employer and employees, and approval from the Fair Work Commission (FWC). The Fair Work Act 2009 outlines specific procedures for varying these agreements, including correcting errors or adding new employers.
  • Changes by Agreement: You and your employer can always agree to change the terms of your contract. If you do, your employer must provide you with written notice of the changes within 30 days, as stated in the National Consumer Credit Protection Act 2009.
  • Hardship: If you're facing financial hardship, you can notify your employer, and they may consider changes to your contract.
  • Major Workplace Change: If your employer introduces a major change to the workplace, they are obligated to consult with you about the change and its impact, as per the Fair Work Regulations 2009 and the Fair Work (Model Terms) Determination 2025.

Detailed Explanation

The ability of an employer to unilaterally change an employment contract is limited and depends on several factors, including the existence of an enterprise agreement, the nature of the proposed change, and relevant legislation.

  • Enterprise Agreements: The Fair Work Act 2009 provides mechanisms for varying enterprise agreements. Section 207 outlines how employers and employees can jointly vary an agreement, requiring approval from the FWC for the variation to take effect. Section 218A allows the FWC to vary an agreement to correct errors or irregularities, either on its own initiative or upon application by employers, employees, or employee organizations.
  • Changes by Agreement: The National Consumer Credit Protection Act 2009 addresses changes to credit contracts, mortgages, or guarantees. Section 71(1) stipulates that if parties agree to change the terms, the credit provider must provide written notice of the changes within 30 days.
  • Hardship: Section 72 of the National Consumer Credit Protection Act 2009 allows a debtor facing hardship to notify the credit provider, potentially leading to changes in the contract.
  • Major Workplace Change: The Fair Work Regulations 2009 and the Fair Work (Model Terms) Determination 2025 detail consultation requirements for major workplace changes. Schedule 2 of the Fair Work (Model Terms) Determination 2025 outlines the consultation process, including notifying employees, providing relevant information, and genuinely considering their views. This applies to changes in production, program, organization, structure, or technology that are likely to have a significant effect on employees.
  • Employee Choice: The Fair Work Legislation Amendment (Closing Loopholes No. 2) Act 2024 includes provisions related to employee choice regarding full-time or part-time employment. Sections 66M and 66MA outline dispute resolution processes if disagreements arise.
  • Flexible Working Arrangements: The Fair Work Legislation Amendment (Secure Jobs, Better Pay) Act 2022 amends the Fair Work Act 2009 regarding requests for flexible working arrangements. Section 65 outlines the process for employees to request changes to their working arrangements and the grounds on which an employer can refuse such a request.

It's important to remember that employers can't use these changes to avoid their obligations or undermine employee rights. The Fair Work Legislation Amendment (Closing Loopholes No. 2) Act 2024 explicitly prohibits employers from reducing hours, changing work patterns, or terminating employment to avoid obligations under Division 4.