Libraries
760+ HR templates
Everything your business needs to stay compliant
Policies, contracts, letters, guidance and HR support tools for UK employers.
View full libraryPolicies, contracts, letters, guidance and HR support tools for UK employers.
View full libraryThis Contract Variation Agreement Letter provides a clear written record of an agreed change to an employee's terms and conditions of employment. It confirms the variation, explains when it takes effect and identifies the existing contractual terms that remain unchanged.
Use this template to:
If you are changing employee terms and conditions, the toolkit brings together practical HR templates covering proposals, consultation, agreement, communication and documentation.
This template brings together the key information, sections and considerations you need to create a clear, comprehensive and professional HR document. Preview the document below.
Contract variation agreement letter for UK employers confirming agreed changes to employment terms, effective dates and continuing contractual conditions.[Sender name]
[Sender address]
[date]
[Recipient name]
[Recipient address]
Dear [Recipient first name],
Variation to your terms and conditions of employment
Further to our recent discussions, I am writing to confirm the agreed changes to your terms and conditions of employment.
Agreed variation
With effect from [Effective Date], the following change will apply to your employment:
| Existing contractual term: | [Existing Term] |
| Revised contractual term: | [Revised Term] |
| Effective date: | [Effective Date] |
| Duration: | Permanent / Temporary until [Date] |
Reason for the variation
The variation has been agreed for the following reason:
[Reason for Variation]
Effect of the change
From [Effective Date], your terms and conditions of employment will be amended as set out above.
[Where the variation is temporary: The variation will apply until [Date], after which your previous contractual terms will [automatically resume
You've seen 40% of how the Contract variation agreement letter template is structured. Get the complete editable template instantly and customise it for your organisation.
Changes to employment terms should be clearly documented so that both the employer and employee understand what has been agreed. This letter provides a practical written record of an agreed variation and can be used for changes such as job duties, working hours, place of work, pay, benefits or other contractual arrangements.
The letter identifies the existing term being changed and sets out the revised arrangement in clear language. This reduces the risk of uncertainty about what has actually been agreed and provides a useful record for the employee's personnel file.
The effective date should be clearly stated, together with whether the variation is permanent or temporary. Where a temporary variation is agreed, the letter should also explain its expected duration and what will happen when the temporary period ends.
Where appropriate, the letter can briefly explain why the variation has been agreed. This can be particularly useful where the change reflects a change in role, working arrangements, organisational requirements or an employee request.
Unless specifically changed by the agreement, the employee's other contractual terms continue to apply. The letter should make this clear and identify any existing agreement or written statement that continues to govern the employment relationship.
The employee should have an opportunity to review the proposed variation and raise any questions or concerns before confirming agreement. A signed acknowledgement can provide a useful record, although a signature is not necessarily required for an agreed contractual change to take effect.
Related HR resources and workflow
Explore the HR resources that may be relevant before and / or after using the Contract variation agreement letter, helping you understand the wider process, maintain appropriate documentation and follow a consistent approach.
Use this if you require a robust and practical Consultation meeting on proposed contract variation script.
The Changes to Terms and Conditions of Employment Letter is used to formally notify an employee of a proposed or agreed change to their employment terms.
Use these best practice actions, recommended timescales and process stages to understand when and how the Contract variation agreement letter should be used, helping ensure each step is handled consistently and appropriately documented.
Understand the common mistakes to avoid when using this HR template, helping you reduce risk, prevent unnecessary costs and ensure the process is handled correctly.
An employee does not necessarily have to sign a new contract for an agreed contractual change to take effect. However, obtaining written confirmation of the employee's agreement provides useful evidence of what was agreed and can help prevent later misunderstandings. https://www.acas.org.uk/changing-an-employment-contract/employer-responsibilities/if-employment-contract-changes-are-agreed
Where a change affects the employee's main terms of employment, the employer must put the change in writing within one month. In practice, it is preferable to document an agreed variation before the change takes effect wherever possible.
Yes. A variation can be temporary if this is agreed between the employer and employee. The agreement should clearly state the period of the temporary change and what will happen when it ends, such as a return to the previous contractual terms.
It depends on the circumstances and the wording of the existing contract. Some contracts contain clauses allowing particular changes in specified circumstances, but such clauses should be used reasonably. Employers should not assume that a general flexibility clause gives unrestricted authority to make any contractual change. https://www.acas.org.uk/changing-an-employment-contract/employer-responsibilities
An employer should not simply treat a proposed variation as agreed where the employee has not accepted it. The appropriate approach depends on the circumstances and may include further consultation, considering alternatives or seeking specialist advice. Dismissal and re-engagement carries specific legal requirements and should not be treated as a routine method of changing contractual terms. https://www.acas.org.uk/changing-an-employment-contract/employer-responsibilities https://www.gov.uk/government/publications/dismissal-and-re-engagement-code-of-practice
HRDocBox templates provide a practical starting point based on UK employment law, Acas guidance and established HR practice. AI can help adapt wording, but a ready-made HRDocBox agreement provides a structured framework for documenting an agreed variation clearly and consistently.
How this content is developed and reviewed
The Contract variation agreement letter template is developed using a practical HR methodology that considers current UK employment legislation, ACAS guidance, CIPD good practice and the real-world HR process it supports. Templates and supporting information are regularly reviewed and updated, with additional reviews triggered by significant changes to legislation, guidance or established HR practice, helping ensure each document remains practical, relevant and suitable for UK employers.
Darryl Horn, Chartered HR Director
Darryl is a Chartered HR professional with over 25 years' experience in senior HR and employee relations roles.
He has extensive practical experience of managing terms and conditions HR processes and founded hrdocbox to provide businesses with practical, professionally developed HR resources grounded in UK employment law and best practice.
HRDocBox has been creating practical UK HR documents since 2009.
"Darryl provides support and advice with excellent judgement, and has a strong understanding of people, policies and UK employment legislation."
"He is someone I trust; consistent, dependable, and committed to doing things properly."
Whether you employ 5 people or 50, hrdocbox gives you the structure, documents and expertise needed to manage employees professionally and legally.
Professionally written and fully compliant with UK employment law
Access a free contract template instantly - or save 10% on any document today.
Use this code at checkout for 10% off anything!
Includes instant download, updates, and full access to your HR templates.
