N
The Global Insight

Can an employer change your basic salary?

Author

Christopher Ramos

Updated on March 21, 2026

This means that a pay cut can only be unilaterally applied across a workforce if each staff member agrees to it. If an employer tries to reduce the pay of an employee without having first obtained their agreement, the employee will be entitled to take action as outlined below.

Can my employer change my contract and reduce my pay?

Can a company legally reduce my pay? Your employer cannot reduce your pay without your consent. If your employer asks for your consent to reduce your pay – and you do not accept – they may opt to terminate your contract on notice. Your notice is set out in your contract.

What happens if your company changes your contract?

Your employer might dismiss you if you don’t agree. If they do, you might be able to claim unfair dismissal or redundancy. If your employer changes your contract by dismissing you and then offering you a new job with new terms, you should talk to an adviser to find out what you can do about this.

Can my employer reduce my contracted salary?

Generally, an employer cannot unilaterally reduce an employee’s rate of pay without the agreement of the employee.

Can I be forced to sign a new employment contract?

If you want to make a change to your contract, speak to your employer and explain why. You can’t insist on making changes unless they’re covered by a legal right, for example, opting out of Sunday working or the 48-hour week. You might be able to apply to change your hours under flexible working rights.

What happens if you change your contract of employment?

Changes to your contract of employment. Introduction. Changes to your contract of employment can occur due either to a change in the law or by agreement between your employer and yourself. Under contract law, neither you nor your employer can unilaterally decide to change the contract and both must consent to any changes in its terms.

Can a company unilaterally change the terms of employment?

Under contract law, neither you nor your employer can unilaterally decide to change the contract and both must consent to any changes in its terms. The procedures for how your employer should inform you of any changes to your terms and conditions are set out in the Terms of Employment (Information) Acts 1994-2014.

When does an employer need to give you notice of a change?

Where changes are made to your contract, employers must give you written notification of the change within four weeks. An unauthorised, one-sided variation is likely to be a breach of the contract of employment, and the fact that the employer has given you notice of the change will not make it lawful.

Can a company change my hours without my consent?

There may be clauses in your contract which gives your employer the right to make reasonable changes without your consent, for instance: A general ‘ variation clause ’ might allow your employer to make some changes to your terms A ‘ flexibility clause ’ might allow your employer to change your hours