Can My Employer Change My Employment Conditions?

A common complaint Mathews Walker clients have relates to their employer changing their employment terms and conditions. This might be their pay, hours, work location, details about their role, their agreed benefits or other significant aspects of their job. While it is sometimes OK for an employer to make changes, it does depend on what is included in your employment contract, how big the change is, and whether the employer follows fair and legal steps.

In New Zealand, employment is governed by law, primarily the Employment Relations Act 2000 plus your individual employment agreement or contract. Any change to your conditions must respect both.

Your employment agreement should set out your key terms including pay, duties, hours, location and benefits. That agreement is a contract. Your employer cannot unilaterally change fundamental terms unless your contract already gives them a lawful and reasonable right to do so. Even then, they must act fairly and reasonably. In other words: your employer can propose changes, but you generally must agree to them for the change to take effect.

If your employer forces changes without your agreement, that could amount to a personal grievance or even constructive dismissal if the change is so serious you feel you have no choice but to leave.

How does that apply to individual conditions and entitlements?

Pay / Salary

Your base wage or salary is a fundamental term. Employers cannot cut your pay without your consent.  If an employer tries to reduce your salary without negotiation and agreement, that’s a breach of contract and may give you cause for a personal grievance.  

If you agree to the change by signing an amended agreement, then the new pay may operate from the agreed date. But you should carefully negotiate and document the change. 

If your pay is structured with bonuses, commission or allowances, those parts may have more flexibility than your wage or salary, depending on what is says in your contract. But even then, changes must be handled fairly.

Hours of Work

Changing your working hours including how many hours you work, when you work and/or your roster or shifts, is one of the most frequent points of dispute. If your employment agreement states your hours or includes guaranteed minimum hours, your employer can’t change that without your agreement. If your contract gives the employer the ability to vary your hours, the employer still must use that right fairly and reasonably.  

So, if your employer decides to reduce your hours, or change start or finish times, that is not automatically legal. They must consult, explain their reasons for the proposed change, allow you to respond, and act in good faith. In some cases, employers may propose reducing hours as an alternative to redundancy, but they must follow the usual process for restructuring.

Location of Work / Relocation

Changing your place of work such as relocating your position to another city, or requiring more travel,can also be a big change. If your employment contract doesn’t explicitly allow relocation or require travel, your employer must propose and justify the change and give you the opportunity to discuss.

Whether relocation or new travel requirements are “reasonable” can depend on how far the relocation is, what additional travel costs might be, how frequent or for how long travel is required, and whether you have family or personal constraints. If the changes to travel or location cause you significant disadvantage you may choose to refuse or negotiate new terms. Your employer can propose a change, but must show business reasons, consult, and make the change reasonable for you.

Flexible Working Arrangements (Hours / Days / Place)

Flexibility working conditions have become increasingly common including working from home, job sharing, compressed weeks and other flexible arrangements. New Zealand employment law gives you the right to request flexible working including change of hours, days, or place of work. Your employer must consider your request in good faith, respond in writing within one month, and only decline for valid business reasons which they must provide in writing. The employer is not required to approve your request if it genuinely doesn’t work for the business. But they must show they considered it fairly.

Requests may be permanent, for a period, or on a trial basis.  If the flexible working arrangements are included in your contract, they cannot be changed without your agreement, unless the contract allows for a variation.  

Use of Work Car / Vehicle / Travel Allowances

If your job includes a work car, travel, mileage allowances or a vehicle benefit, those conditions may be included in your employment agreement. If your employer then wants to remove or reduce that benefit, they will need your agreement to change these terms.

Reporting Lines / Structure / Title Changes

Employers sometimes reorganise their structure or make changes within reporting lines and positions requirements.  You might be shifted to report to a different manager or your title might change.  These kinds of changes are less likely to be considered fundamental if your job remains broadly the same. They can still cause problems if done without consultation or if they materially worsen your position.

If your job duties, responsibilities, or status change significantly, it may amount to a major variation. A mere title change without real effect is less serious, but still should be consulted.  Shifting reporting lines is common in restructures but it should be part of a fair process where impacts and feedback are considered.  If your role changes substantially such as new tasks being added far beyond your original role, budget, authority or status, you may have a case that the change is unfair.

Position Description / Duties

Over time, many roles evolve slightly with new tasks and extra duties. Your employer can ask you to perform tasks that are reasonably within the scope of your role. But if the employer expects you to take on a whole new set of responsibilities that may be considered a substantial change.

If changes to duties are moderate and matched by pay or status adjustments, and the process is fair, this is often acceptable. But if the changes are large or abrupt and you are disadvantaged, it may be unjustified.

Other Benefits (Bonuses, Health Insurance, Perks, Leave)

Benefits such as bonuses, health cover, insurance, perks, extra leave or allowances, are also part of your employment terms. If an employer wants to remove or reduce these, that is a change to your conditions. They should propose it, consult you, and get your agreement.

Bonus schemes are especially sensitive. If a bonus is discretionary, the employer may have more leeway but if it’s part of your contract, then removing it is a change is a change to your conditions. Similar logic applies to leave entitlements or allowances. Removal or reduction has to be consistent with your contract.

What Does the Employer Need to Do if they want to change your conditions?

It’s not enough for your employer just to propose a change to your conditions, they must follow a fair process and respect good faith. New Zealand employment law requires:

1. A Genuine business reason. The employer should have a legitimate rationale, such as cost pressures, restructuring or operational needs, for the change.

2. Consultation and discussion. The employer should inform affected employees, share information, listen to feedback, allow counter-proposals, and discuss impacts before proceeding with the change.

3. Transparency. The employer should clearly explain why, how, the proposed timing, and alternative options.

4. Fair notice. The employer should give you enough time to think, seek legal advice, and respond.

5. Consideration for your situation. The employer should consider personal affects of changes such as commuting times, family commitments and other potential impacts on employees.

6. Documentation of changes. Any proposed variation should be in writing and then formally added as an amendment to the employment agreement.

   
   

If an employer fails to follow a fair process, even a reasonable change might be deemed unjustified, opening the door to a personal grievance.

What should you do if your conditions are being changed?

If your employer proposes a change you’re unhappy with:

• Ask for full details in writing. What are they proposing, for what reason, when and how will it affect you.

• Ask for time to think about it, get advice, work out impacts and decide if it works for you.

• Propose alternatives or compromises to what is being suggested.

• Ask for any change into writing as an amendment to your employment contract.

• If your employer forces change or does it without your agreement or fair process, consider raising a personal grievance for unjustified disadvantage. In extreme cases, you might consider resigning and claiming constructive dismissal if the change is so severe you are left no choice.

• Seek advice from an expert, such as an employment advocate to ensure that the changes are fair and reasonable.

• Act quickly. Don’t just let changes slide or agree to things that are not in your best interest.

Frequently Asked Questions

Can my employer reduce my pay? No.  Your pay is a key term of your contract. Unless you agree to the change (by signing a variation), an employer cannot lawfully reduce your salary. Doing so without agreement may entitle you to a personal grievance.

Can my employer change my hours without my consent? Only if your contract gives them that power (a flexibility clause) and they use it reasonably. Otherwise, they must consult and get your agreement.

What about flexible working? Can I ask for it? Yes. Under NZ law, you can request a change in your hours, days or place of work at any time. Your employer must consider the request in good faith and respond in writing within a month. They should only decline for valid business reasons.

Can they change my job location (relocate me)? They can propose a relocation, but it must be reasonable considering commuting, costs, impact. If the change is substantial and your contract doesn’t allow it, you can refuse or negotiate.

Can they change my title or reporting lines? Yes.  Often they can so long as it's reasonable and consulted. But if your role’s duties or status are significantly changed or worsened, you may challenge it.

If I refuse a change, can they fire me? Not lawfully, unless they follow a fair process.

What if they remove perks (car, allowances, bonus)? Those are contractual benefits. Removing or reducing them is a change of terms, so they need to negotiate and get agreement from you, unless the contract specifically gives them power to vary.

Employers can, and often do, seek to change employee conditions. But they can’t simply do it however they like. Changes must respect your contract, be proposed in good faith, be reasonable, and should be agreed in writing.  If your employer is trying to change your conditions without your agreement, pause. Ask for the rationale, ask for the impact, discuss and negotiate. If in doubt, get help from an advocate to ensure any changes are fair and reasonable. Get in touch today for a free consultation. MathewsWalker.co.nz | 0800 612 355

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