Contract terminated and forced to go self employed

An employer who wishes to introduce a change in the terms and conditions of employees can terminate the existing contract with due notice as they have done here and offer new terms and conditions to include the proposed variation (in this case the salon would not issue an employment contract as they have indicated that services will be provided on a self-employed basis and for 15 hours per week rather than 30 so this is more likely to be a contract for services).

There will be no breach of contract in these circumstances, although the termination will be a dismissal and as such could give rise to an unfair dismissal claim, but as the employee has less than two years service, this will not be an option for her.  In summary, the employer’s actions are legal.

*Samantha Tanney assisted with this answer.

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