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.

Legal Island Training Resources for Your Staff

HR Toolkit | eLearning Course

Are you responsible for overseeing the implementation of training for all employees in your organisation?

Legal Island has created an HR Toolkit that aims to provide comprehensive training to assist HR professionals in supporting line managers and employees throughout the employee journey. The suite of courses will offer practical advice to assist you in updating your processes and procedures and help you understand your legal obligations.

Click here to view our HR toolkit.