If a job or function is fundamentally changed, then a termination pending a change of contract is necessary.
What is a termination pending a change of contract?
A termination pending a change of contract is a termination of the employment contract combined with an offer of reemployment under a changed contract that enters into effect following the expiration of the notice period of the old contract.
Who makes the termination pending a change of contract?
As a rule, this type of termination is made by the employer.
What happens after the termination?
Your employee can choose to accept the new contract and keep the position or to leave the company upon the expiration of the notice period.
That’s why there are two scenarios:
- Your employee accepts the amended contract without reservation and the employment relationship continues under the new conditions.
- Your employee rejects the new employment conditions. In this case, the termination pending a change of contract actually results in the termination of the employment relationship, i.e. the current employment contract ends upon the expiration of the notice period.
Do certain formal requirements have to be complied with?
The termination pending a change of contract does not need to fulfill any formal requirements (i.e. it can also be made orally), except if the employment contract expressly requires it be done in writing. The termination is then only valid if it is made in writing. Your employee can always ask for a reason for the change. Important: For the termination pending a change of contract, you must adhere to the ordinary notice period.
Our template can help you if you need to terminate an employment contract pending a change in contract.
These legal tips may also interest you:
- Releasing an employee from work
- Regular termination by the employer
- Termination without notice by the employer