Contract variation agreement letter template2 min read
If you have reached an agreement with an employee regarding a variation to their contract / terms and conditions, issue this model letter template.
You should also issue a separate letter confirning the specific terms that are changing, such as salary, bonus, location of work etc.
What is a Contract variation agreement letter?
When an employer needs to make contractual modifications to an employee's terms and conditions, they should always do so after consulting and agreeing with the employee(s).
Employers might occasionally be justified in unilaterally modifying workers' terms and conditions by terminating their contracts and re-hiring them on new terms and conditions under extreme situations, when there are legitimate and compelling business demands and agreement cannot be achieved.
'Fire and rehire' procedures should be used only as a last resort if revisions to employment contracts are critical and voluntary agreement is not available.
What legal and best practice aspects should employers be aware of?
Here are some key UK employment legislation that employers must comply with when implementing a Contract variation agreement letter:
The Employment Rights Act 1996: This outlines the statutory rights that employees have with regard to changes to their employment contracts, including the right to be given notice of any proposed changes and the right to refuse changes if they are not agreed in writing. Employers must ensure that any proposed changes are in compliance with the provisions of this Act.
The Equality Act 2010: This prohibits discrimination on the grounds of age, gender, race, religion, disability, and other protected characteristics in relation to employment. Employers must ensure that any changes to employment contracts do not result in discriminatory treatment.
The National Minimum Wage Act 1998: This sets out the legal requirements for the payment of minimum wage rates to employees. Employers must ensure that any changes to employment contracts do not result in a breach of minimum wage requirements.
The Working Time Regulations 1998: This sets out the rules on maximum weekly working hours and rest breaks, which can impact the terms of employment contracts. Employers must ensure that any changes to employment contracts are compliant with these regulations.
Overall, employers must ensure that they are complying with all relevant employment legislation when implementing a Contract variation agreement letter, and that they are providing employees with clear information about any proposed changes to their employment contracts. Employers should also ensure that any proposed changes are fair, reasonable, and do not result in discriminatory treatment.
Contract variation agreement [Delete this line]
Dear [Recipient first name],
Further to my letter dated [date] and our discussions on [date], I write to confirm your agreement to the changes that [Company] has proposed.
I enclose two copies of the revised terms and conditions of your employment.
Please would you return one copy, duly signed and dated, to me no later than [insert date] to confirm your acceptance for our records.
Yours [faithfully | sincerely],
[Sender job title]
Contract variation proposal letter template
If you wish to vary an employee's contract / terms and conditions, issue this model letter template as a proposal of the variation, and to request a meeting to discuss.
Changes to terms and conditions of employment letter template
This document is used where the Company wishes to change certain terms and conditions of employment with agreement of the employee.
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