Terms and conditions templates toolkit

What are terms and conditions of employment?

Employees and employers must adhere to the terms within a contract until it ends (for example, by an employer or employee giving notice or an employee being dismissed) or until the terms are changed (usually by agreement between the employee and employer).

To change a contract usually requires agreement between both parties, or reasonable notice if agreement ultimately cannot be sought.

Terms and conditions templates are essential for managing a low-risk, compliant Terms and conditions process.

Common mistakes

Understand the common mistakes employers can make when managing this area of HR, helping you reduce risk, prevent unnecessary costs and ensure the process is handled fairly, consistently and correctly.

• Making changes without consultation – Assuming contractual terms can simply be changed because the business wants to introduce a new arrangement.
• Relying on informal agreement – Failing to document important changes to employment terms.
• Ignoring the original contract – Introducing changes without checking existing contractual wording and related obligations.
• Making inconsistent changes – Applying different terms to comparable employees without a clear reason.
• Overlooking knock-on effects – Changing one term without considering its impact on pay, hours, holidays or other arrangements.
• Failing to explain the reason – Communicating a contractual change without giving employees enough information to understand it.
• Assuming silence means agreement – Treating an employee's lack of response as automatic acceptance of a significant change.
• Failing to update records – Agreeing changes but leaving payroll, HR systems and contractual documents inconsistent.

What is a typical terms and conditions process workflow?

Here we show you which resources to use to effectively implement changes to an employee's contract, taking into account the different decisions and directions that are likely / possible.

Following this flowchart will ensure that you factor in all eventualities, follow legal / code of conduct or best practice processes, communicate effectively, and reduce the risk of things going wrong.

FAQs

What are terms and conditions of employment?

Terms and conditions set out the rights, responsibilities and arrangements governing the employment relationship. They can cover pay, hours, holiday, duties and benefits.

Can an employer change an employee's terms and conditions?

Sometimes, but the appropriate approach depends on the nature of the term, the contract and the circumstances. Employers should consider whether consultation or agreement is required.

Should changes to employment terms be confirmed in writing?

Yes. Material changes should be clearly documented and communicated, and employers must provide updated written particulars where required.

Can an employee refuse a contractual change?

An employee may not agree to a proposed contractual change. The consequences depend on the circumstances and proposed change.

Why is consultation important when changing terms?

Consultation allows employees to understand proposed changes and gives them an opportunity to raise questions or concerns.

Why use HRDocBox to support terms and conditions?

HRDocBox combines real-world HR experience, subject-matter expertise and commercial understanding to support effective terms and conditions management with practical, tried-and-tested resources. With instant access, editable documents, ongoing updates and 12 months' access, you get practical HR support when you need it.