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No
- Legally speaking, the answer is no. If all an employee does is sign that newly updated contract without anything more, that contract will not be enforceable or worth the paper it is written on. That is because for an employment contract to be enforceable there must have been fresh consideration given to the employee in exchange for signing it.
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Does a new employment contract have a value?
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Does a new employment contract need fresh consideration?
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When should new employees sign a contract?
Jun 26, 2019 · Transitioning existing employees to new contracts, whether they be in writing for the first time or new written contracts with proper drafting, is tricky. In order for a contract to be valid, “consideration” must be given to the employee in exchange for their agreement to the terms.
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The short answer: Signing an Employment Contract, or even an offer letter, can cost you tens of thousands of dollars (or more) and expose you to unwanted changes in your duties, compensation, and even location of work.
Mar 25, 2021 · What is ‘something of value’ to make an employment contract binding on an existing employee? Existing employees can sign and be bound by new, enforceable employment agreements, but only if they receive some concrete valuable benefit in return.
Aug 22, 2019 · Key Takeaways. The Court’s holding that a resignation breaks the chain of employment, even if it is rescinded prior to its effective date, is a favourable result for employers. Nonetheless, the need for fresh consideration will depend on the situation at hand.
Jun 17, 2024 · Consideration means something “new and of benefit”, beyond continued employment, that flows to the employee in exchange for their agreement to the new contract. The Courts will not enforce a new contract if it was signed under duress or under the threat of termination.
Jan 28, 2020 · This rule of fresh consideration is particularly relevant when it comes to termination clauses introduced into amended employment contracts. For example, an employer may require an existing employee to sign an employment contract that adds a restrictive termination clause.
Oct 7, 2024 · The law does not require that the new benefits be in the form of money, or that the economic value of the new benefits provided to the employee equal or exceed the economic cost of the new terms of the agreement.” Hum suggests several options that could provide value to employees without direct monetary compensation. "It could be anything.
