Danger Ahead: Beware Of Changes To Employment Agreements

To appreciate the dangers of varying employment terms, we must start with the foundations of contract law.  First, a contract requires that each party receive a benefit (consideration). Second, if the parties agree to a variation of contract, but consideration is not received by both parties, Courts will consider the new contract an "unenforceable unilateral variation".  Third, it is not normally considered a benefit to tell your employee "if you agree to this, you get to keep your job."  That is a benefit your employee was already entitled to under the original terms of employment, and therefore, does not constitute "fresh" consideration.

What happens if both parties do not receive a benefit?