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ARTICLE · 04 OCTOBER 2021

Amending Employment Agreements: Don't Forget Consideration

In the recent decision of Matijczack v. Homewood Health Inc., 2021 BCSC 1658 (Homewood Health), the BC Supreme Court confirmed that employers must provide consideration

CanadaEmployment and HR

In the recent decision of Matijczack v. Homewood Health Inc., 2021 BCSC 1658 (Homewood Health), the BC Supreme Court confirmed that employers must provide consideration to make amendments to existing employment agreements enforceable.

Following a 2018 decision from the BC Court of Appeal (Rosas v. Toca, 2018 BCCA 191), the law relating to consideration for contractual amendments has been in flux. The Homewood Health decision makes it clear that consideration is required in the employment context:

"The requirement of consideration to support an amended agreement is especially important in the employment context, where there is an inequality of bargaining power, and particularly in the circumstances of an amendment to an existing contract, where the employee is more vulnerable, due to being dependent on the pay from their continued employment."

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