Written Contracts

HRManager

If employees have a written contract, signed by both employee and boss, can this be changed at will? For example, recently our employer cut everyone's salary and had each person sign a new contract. If they want to cut our salary again and change benefits or anything, can they just rewrite and make people sign? If people refuse to sign, can they be terminated?

Margaret Morford

For a contract to be binding there must be offer, acceptance and consideration. Consideration is a fancy legal word for the agreeing party (in your case, the employee) gets something for signing. If the employment contract is signed when the employee begins work, the consideration is a new job, salary and benefits. If it's signed during the tenure of employment, usually the employee is paid something or given something (bigger bonus potential, etc.)to make the contract binding. I'm not sure that continued employement would constitute adequate consideration. It really depends on what state you are in and what the courts have ruled is adequate consideration to make an employment contact binding. You probably need some legal advice. You might also publish your state on the Forum to see if one of the attorneys will respond as to what is adequate consideration for a binding employment contract in your state.

Margaret Morford
theHRedge
615-371-8200
[email]mmorford@mleesmith.com[/email]
[url]http://www.thehredge.net[/url]

HRManager

thanks Margaret - we are located in Minnesota.