Latest in Employment Law>Articles>What is the legal position when a contract of employment states the incorrect salary?
What is the legal position when a contract of employment states the incorrect salary?
Published on: 03/10/2024
Issues Covered: Contracts of Employment
Article Authors The main content of this article was provided by the following authors.
Chris Fullerton
Chris Fullerton

What is the legal position when a contract of employment states the incorrect salary?

It is not clear whether the salary provided for in the contract is higher or lower than it ought to be. Whilst it is good practice to ensure that contracts are kept up to date, it is often the case that salary increases may be made without amending the contractual terms. This would likely be viewed as an implied change to the contract, especially if both parties accept the change and act accordingly. The increase would be legally binding based on conduct even though it has not been explicitly written into the contract.

The situation is potentially more complicated if the employment contract provides for a higher salary than the employer had intended to provide. Further information would be required as to the reason for the higher salary being included in the contract but, assuming this was simply a clerical error, it would be important for the employer to clarify the error in writing as soon as possible. If both parties can agree that the contract contains a salary mistake, they can mutually agree to amend the contract. It would be helpful to refer to any other document which may have contained the correct salary e.g. job offer, letter of offer etc. Specific legal advice should be sought if the employee has been receiving the mistaken amount.

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Disclaimer The information in this article is provided as part of Legal Island's Employment Law Hub. We regret we are not able to respond to requests for specific legal or HR queries and recommend that professional advice is obtained before relying on information supplied anywhere within this article. This article is correct at 03/10/2024