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Employment Law News

When can a contract be varied orally?

A court has held that a contract could be varied by an oral agreement between the parties, despite the earlier contract containing a clause to the effect that all subsequent variations must be in writing.

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Penalty clauses redefined

Many employment contracts and settlement agreements contain clauses suggesting dire consequences if they are breached. When relied upon, employees often argue that they are “penalty clauses” and therefore void. Faced with two contrasting cases on the nature of a penalty clause, the Supreme Court has provided a new test to identify those clauses which are unenforceable as penalties.

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