It has generally been accepted that an employer is permitted to change unilaterally a term or condition of employment, including compensation and benefits, by providing reasonable notice of the change to affected employees. However, in a recent decision, the Court of Appeal of Ontario held that, where an employee does not consent to changes to his/her terms of employment, an employer can make unilateral changes only if it precedes them with reasonable notice of termination and offers re-employment to the employee on the new terms.

type Labour & Employment Pension Alert - May 2008 - Unilateral Amendments To Employment Contracts: The Court Of Appeal Clarifies The Law