In New Zealand, an employer’s ability to change an employee’s hours, role or work location is subject to specific legal requirements and constraints. The definitive answer almost always begins with your employment agreement. This forms the legally binding foundation of your relationship with your employer, setting out the terms and conditions of your employment. When questions arise regarding these terms, your employment agreement will be the primary source of answers. 

 For example, if your employer has unilaterally changed your hours, look to the terms in your contract:  

  • Does it say how many hours you must work?  
  • Does it state a minimum or maximum number of hours each week? 
  • Does it state that the employer can change those hours? 
  • Does it require a certain amount of notice to be given before the hours are changed? 

 Neither the employer nor the employee can change the fundamental terms of a signed employment agreement without consent from the other party. This principle is a cornerstone of contract law and reinforced by the good faith obligations in the Employment Relations Act 2000 (the Act).  

Changes to hours of work

As stated, employers cannot unilaterally change an employee’s hours of work unless the employment agreement explicitly allows for such changes. Even then, the employer must act reasonably and fairly, and any changes must be made in good faith.  

 The case of Kingi v Bay of Plenty District Health Board illustrates this point. The Employment Relations Authority considered that the Multi Employer Collective Agreement, which required 8 weeks’ notice and agreement before implementing changes to hours of work requirements, meant that merely providing notice was insufficient. An agreement between the employer and employees was also necessary before any changes could be implemented.  

Changes to role

Employers may alter duties and responsibilities within the scope of the employment agreement, provided the changes do not significantly or substantially alter the nature of the position.  

For example, in the case of Zhang v Health New Zealand – Te Whatu Ora [2023] NZERA 363, the ERA held that Te Whatu Ora failed to meet its obligations to discuss changes to Ms Zhang’s functions, duties, and responsibilities as required under cl. 2.3 of her individual employment agreement. The failure constituted an unjustified disadvantage under section 103(1)(b) of the Act.  

Changes to work location

Relocation of an employee’s work location must also comply with the terms of the employment agreement. If the agreement does not specify whether a location of change affects the terms and conditions of employment, factors such as commuting distance, usual travel arrangements, and personal circumstances must be considered to determine whether the change is reasonable.  

The Importance of Consultation 

Even when a change is being proposed, rather than imposed, an employer has a significant obligation to consult with employees about any changes in the workplace that may affect them. This is not merely a courtesy, it’s a fundamental aspect of the good faith provisions under the Act. Effective consultation means the employer must: 

  1. Provide relevant information: Employees must be given clear and comprehensive details about the proposed changes, the reasons behind them, and how they might be impacted. This information should be presented in a way that allows the employee to genuinely understand the situation. 
  2. Offer an opportunity to provide feedback: Employees must be given a reasonable amount of time to consider the proposed changes, ask questions, and offer their views, concerns, or alternative suggestions. This feedback must then be genuinely considered by the employer. 

This consultation process is highly important as it demonstrates respect for the employee’s perspective, fosters transparency, and can often lead to mutually agreeable solutions, thereby reducing the likelihood of disputes.  

A failure to consult adequately, particularly regarding significant changes, can be a breach of the good faith obligation and may give rise to a personal grievance. 

Unilateral Changes and Their Consequences 

As established, an employer generally cannot make unilateral changes to the fundamental terms of an employment agreement. Attempts to do so can be viewed as a breach of contract. For example, by forcing an employee into a new role with significantly different duties or reducing their hours without agreement. Such actions can lead to a personal grievance claim for disadvantages or even constructive dismissal, where the employee is effectively forced to resign due to the employer’s actions. 

While employment agreements may contain flexibility clauses that allow for minor operational adjustments (e.g., changes to reporting lines within a broad job description that do not fundamentally alter the role), these should not be interpreted as free range for significant unilateral alterations. Any changes must be consistent with the spirit and intent of the original agreement and respect the employer’s ongoing good faith obligations. 

 

The first step in getting support is to talk with a lawyer from Frontline Law about your situation and see what options we can offer you. Contact Frontline Law for a free initial consultation.

*The information in this blog post is general in nature and is not legal advice. If you need advice, you should contact us about your specific situation.