Any change in a person's pay, whether increase or decrease, is a variation of a condition of the contract. It therefore requires the agreement of both employer and employee.

In practice, it is rare (though not unknown) for an employee to refuse a pay increase. The size of the increase may be in dispute, but the increase is not.

Under contract law, employees have no entitlement to pay increases at all. Like any other change in the contract of employment, the matter must be agreed by the employer and employee.

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