Receiving a new employment contract — particularly one that cuts pay, removes benefits, or changes working hours — is stressful. The key point: you do not have to sign it. But the consequences of refusing depend on how your employer responds.
What Can — and Cannot — Be Changed Without Your Consent
Employment contracts can contain two types of terms:
| Term type | Can employer change without consent? |
|---|---|
| Contractual terms (written in contract) | No — requires agreement or dismissal and re-engagement |
| Implied or common law terms | No — fundamental terms are protected |
| Policies and procedures (non-contractual) | Generally yes, with reasonable notice |
Typical changes employers try to impose include: pay cuts, changed hours, revised location or role, removal of benefits (enhanced sick pay, bonus schemes), or changed holiday entitlement. All of these require your consent if they are contractual.
Your Options When Presented with a New Contract
- Accept and sign — if the changes are acceptable or the business rationale is compelling
- Negotiate — propose modifications; employers often have flexibility on details
- Object in writing and continue working — preserves your position but requires prompt written protest
- Refuse — employer must then decide whether to accept the refusal or pursue dismissal
Working Under Protest
If you continue working but do not agree to the new terms:
- Send a written message (email is fine) stating: “I am continuing to work under my existing contractual terms. I do not accept the proposed variation to my contract dated [date].”
- Keep a copy
- This prevents implied acceptance
Do this within a short time of the changes being imposed — waiting several months before objecting weakens your position considerably.
Fire and Rehire: What It Is and When It Applies
If you refuse and the employer wants to impose the change, the legal route is:
- Give you notice to terminate your existing contract
- Immediately offer re-employment on the new terms
This is ‘fire and rehire’ or dismissal and re-engagement. Since 2024, employers must:
- Follow the ACAS Code of Practice on dismissal and re-engagement
- Consult genuinely before using this as a threat
- Show the change was genuinely necessary for business reasons
If handled wrongly, the dismissal may be unfair — giving you a tribunal claim.
Negotiating the New Contract
Before accepting or refusing, consider negotiating. Employers typically have some flexibility:
- Ask what is driving the change — understanding the business reason may reveal room for compromise (e.g. if it’s cost-cutting, are there other ways to achieve savings?)
- Request transitional protection — if the new terms reduce your pay or benefits, request a protected period before the new terms fully kick in
- Propose alternatives — suggest alternatives that meet the employer’s need without removing your protections (e.g. flexible working instead of remote working removal)
- Get the terms in writing — any agreed variations should be documented in writing, signed by both parties
If the employer imposes the new contract anyway: Working under the new terms without explicitly objecting may be treated as acceptance. Write to HR stating you are working under protest and have not accepted the new contract. This preserves any future claim while keeping you in employment.
Employers can dismiss and re-engage on new terms (known as “fire and rehire”) — but this is a last resort and attracts significant reputational and legal scrutiny. The government introduced a new statutory Code of Practice on Fire and Rehire in 2024.