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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.
[Sender name]
[Sender address]
[date]
[Recipient name]
[Recipient address]
Dear [Recipient first name],
Further to my letter dated [date] and our discussions on [date], I write to confirm your agreement to
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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.
This Contract variation agreement letter template incorporates relevant UK laws and HR standards, including those listed below:
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.
Check which resources should be implemeted before and/or after the Contract variation agreement letter template, to understand the workflow.
Use this if you require a robust and practical Consultation meeting on proposed contract variation script.
This document is used where the Company wishes to change certain terms and conditions of employment with agreement of the employee.
Can I use the Contract variation agreement letter template in my small business?
Yes. The Contract variation agreement letter template is designed to be flexible and suitable for organisations of all sizes, including small businesses and charities. It follows UK employment law best practice, so even if you don't have an in-house HR team, you can confidently apply it.
Is the Contract variation agreement letter template compliant with 2026 UK employment law?
Absolutely. Like the Contract variation agreement letter template, all of our templates are drafted with the latest ACAS guidance and UK employment legislation in mind. We review and update them regularly, so you can be confident they remain compliant.
Can I customise the Contract variation agreement letter template for my organisation?
Yes, we highlight the areas of the Contract variation agreement letter template that you need to update with your own details, and where you need to make decisions to suit your situation. This saves you time and ensures that you meet best practice.
Do I get instant access to the Contract variation agreement letter template?
Yes. Once purchased, you'll be able to download the Contract variation agreement letter template instantly. Templates are provided in editable Word or Excel format so you can customise them easily, and in PDF format for easy sharing.
What if I need more help, not just a Contract variation agreement letter template?
If you're looking for broader support, we also offer toolkits and library bundles that include the Contract variation agreement letter template, along with other HR templates and policies for fully managing your situation. These may be more cost-effective if you need deeper advice.
Why should I use this Contract variation agreement letter template, and not AI to generate it?
The risk of using a free AI-generated template 'without review' includes your legal exposure, missing context, and no awareness of the wider process, whereas purchasing the Contract variation agreement letter template from us mitigates that risk.
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