Changing contracts tricky, but possible

Employers are free to make significant changes to the terms of employment contracts as long as enough notice is given
By Rich Appiah
|Canadian Employment Law Today

Employers who want to bring existing employment agreements in line with updated corporate standards often face a delicate challenge, particularly when proposed amendments will fundamentally alter contractual guarantees of significant value to employees. When an employer imposes these types of changes, it runs the risk the employee will resign and sue for constructive dismissal. The resulting litigation can be time-consuming, distracting and costly, especially when the employer is found liable for the former employee’s damages.

Employers can take guidance, however, from the recent decision in

Wronko v. Western Inventory Service Ltd.