Contract variation agreement letter template

Contract variation agreement letter template

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.

£7.90
Specifications
Access 12 months (includes updates)
Length 61 words · 1 page
Jurisdiction England, Wales and Scotland
Based on UK employment law, ACAS guidance
Last review 01/08/2026
Next review 01/02/2027
Delivery Instant download
Formats .doc · .txt · email

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Email
Template

[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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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.

The wider HR process

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.

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Consultation meeting on proposed contract variation script

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Contract variation agreement letter
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Changes to terms and conditions of employment letter

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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Compliance

UK employment law and best practice

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.

UK employment law guidance for Contract variation agreement letter template

Related Terms and conditions HR templates

Frequently Asked Questions

Can I use this in my small business?

Yes. This template has been designed for organisations of all sizes, including small businesses, charities and growing employers. It follows UK employment law best practice and can be adapted to suit your organisation.

Is it compliant with 2026 UK employment law?

Our templates are developed with UK employment legislation, Acas guidance and HR best practice in mind and are reviewed and updated as relevant requirements change. However, every employment situation is different, so the template should be adapted to the circumstances and checked against the employee's contract and your organisation's procedures before use.

Can I customise it for my organisation?

Yes, we highlight the areas of the document 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 it?

Yes. Once purchased, you'll be able to download it instantly. Templates are provided in editable format (such as .doc or .xls) so you can customise them easily, and in PDF format for easy sharing.

What if I need more help, not just this 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?

AI can produce a document quickly, but effective HR documentation needs to be more than well-written words. It needs to reflect relevant UK employment law, HR best practice, practical considerations and the circumstances in which it will be used. These resources have been professionally developed around that wider HR context, drawing on extensive practical experience, rather than simply generating a generic document from a prompt.

About the author

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 processes and founded hrdocbox to provide businesses with practical, professionally developed HR resources grounded in UK employment law and best practice.

Executive recommendation

"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."

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Ruth Brock Chief Executive Officer The Hygiene Bank
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