Danger Ahead: Beware of Changes to Employment Agreements
To appreciate the dangers of varying employment terms, we must start with the foundations of contract law. First, a contract requires that each party receive a benefit (consideration). Second, if the parties agree to a variation of contract, but consideration is not received by both parties, Courts will consider the new contract an “unenforceable unilateral variation”. Third, it is not normally considered a benefit to tell your employee “if you agree to this, you get to keep your job.” That is a benefit your employee was already entitled to under the original terms of employment, and therefore, does not constitute “fresh” consideration.