The issue of whether updated Contracts of Employment given to employees are binding or not has always been debatable and will depend partly on any variation clause within the contract and the updates themselves as to whether they are reasonable and fair.

However, employment law cases have highlighted this HR issue and the need to ensure that employees sign and return their Contracts of Employment.

In one such case, the employee started work in September 2000. In April 2003 he signed his first Contract of Employment with the company which didn’t contain any post-termination restrictive covenants. In April 2009, he was formally promoted. At the end of September 2009, five months after his promotion took effect, he was sent a new Contract of Employment which contained post-termination restrictive covenants. However, he didn’t sign or return the contract. The Court decided that in this case the employee’s acceptance of the new Contract of Employment was implied by the fact that he applied for private medical insurance (PMI) cover, only available to him under the terms of the new contract. Therefore, he was bound by the terms of the new contract from the date he applied for the PMI. Significantly though, had he not applied for the PMI, the Court may not have found that he was bound by the new contract, so the post-termination restrictions wouldn’t have counted.

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