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ARTICLE · 28 JULY 2013

When does altering an employment contract amount to repudiation?

Varying an employee's duties and responsibilities could have the effect of repudiating the employment contract.

AustraliaEmployment and HR

Key Points:

Varying an employee's duties and responsibilities may have the effect of repudiating the employment contract.

To what extent can you vary an employee's duties and responsibilities before you have signalled that you no longer intend to be bound by the employment contract? Justice Sackar's recent decision in Paul Fishlock v The Campaign Palace Pty Limited [2013] NSWSC 531 is a useful reminder of the relevant principles.

Fishlock's employment contract

In 2003, Paul Fishlock commenced employment with The Campaign Palace as Chairman/Executive Creative Director (a title used interchangeably with Chairman/National Executive Creative Director).

In September 2010, there was a vacancy for the Sydney Creative Director, who had reported to Fishlock. The Campaign Palace management considered Reed Collins, but he was only interested in joining the firm if he could be the creative lead nationally.

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