Contract variations are part and parcel of business relationships. Agreements evolve, requirements change. It’s important to be aware of how to vary a contract in order to facilitate these changes.
How Can You Vary A Contract?
You are able to vary a contract just like they are formed, be it verbally, in writing or by conduct. The first thing to check is whether your contract has a variation process included. If it does, that process should be followed. If that process is not followed case law has shown that it is highly likely the variation would still be legally valid.
Agreement or Deed?
If you need to vary an agreement, the next stage is to decide whether the variation should be in the form of an agreement or a deed. In order to answer this there needs to be an assessment of whether there is to be any ‘consideration’. But what is ‘consideration’? (more…)
Holiday Pay Cases – Employer’s Liability
The recent case of Fulton and others v Scotland from the Employment Appeals Tribunal which will have a big impact on Employers when they are assessing possible liability. This judgement handed down confirmed that a break of 3 months breaks the chain in a series of deductions.
What does this mean?
If you have been underpaying employees on consecutive occasions when they have taken holiday, the employee can bring a claim stating each such occasion is linked and demand the employer repays all the amounts underpaid. This recent judgement means that if there is a break of 3 months or more from one holiday underpayment to another,then the chain will be broken and the employer will not be liable for such historic underpayment claims.