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View full libraryThis Contract Variation Agreement records an agreed change to an employee's terms and conditions following discussion and adjustment of the original proposal. It clearly sets out the original proposal, the adjustment agreed and the final contractual terms that will apply.
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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.
[Sender name]
[Sender address]
[date]
[Recipient name]
[Recipient address]
Dear [Recipient first name],
Contract Variation Agreement – Revised Proposal
Further to our discussions regarding the proposed change to your terms and conditions of employment, I am writing to confirm the revised arrangement that we have now agreed.
Original proposal
Our original proposal was to make the following change to your terms and conditions:
[Set out the original proposal clearly, including the relevant contractual term, proposed change, proposed effective date and whether the proposed change was intended to be temporary or permanent.]
Discussion and adjustment to the proposal
Following discussion, you raised the following points / proposed the following alternative arrangement:
[Summarise the employee's concerns, comments or alternative proposal where appropriate.]
We have considered these points and have agreed to adjust the original proposal as follows:
[Set out the adjustment agreed between the parties.]
Final agreed variation
The final variation to your terms and conditions of employment is therefore as follows:
| Existing contractual term: | [Existing Term] |
| Original proposed change: | [Original Proposal] |
| Adjustment agreed: | [Adjustment to Original Proposal] |
| Final agreed term: | [Final Revised Term] |
| Effective date: | [Effective Date] |
| Duration: | Permanent / Temporary |
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Contract variations do not always follow the employer's original proposal. An employee may raise concerns, suggest an alternative or negotiate a different arrangement, resulting in a revised proposal that both parties are willing to accept. This agreement provides a clear record of that process and confirms the final contractual terms that have been agreed.
The agreement records the substance of the original proposed change so there is a clear distinction between what was initially proposed and what was ultimately agreed. This is particularly useful where the final arrangement differs materially from the original proposal.
The document provides space to explain the adjustment made following discussion with the employee. This might involve a different working pattern, a reduced or phased change, a different implementation date, a temporary arrangement or another alternative that addresses the underlying business requirement.
The final contractual position should be stated clearly and independently of the earlier proposal. The employee should be able to understand exactly what their terms will be after the variation takes effect without having to interpret the negotiation history.
The agreement confirms when the revised terms will take effect and whether the arrangement is permanent or temporary. Where the variation is temporary, the document should explain what happens at the end of the agreed period.
The agreement should be retained alongside the existing contract and other employment records. Unless expressly changed, the employee's remaining contractual terms continue to apply. Relevant HR, payroll and other records should also be updated to reflect the final agreed arrangement.
Related HR resources and workflow
Explore the HR resources that may be relevant before and / or after using the Contract variation agreement (with adjustment to original proposal) letter, helping you understand the wider process, maintain appropriate documentation and follow a consistent approach.
Use these best practice actions, recommended timescales and process stages to understand when and how the Contract variation agreement (with adjustment to original proposal) 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.
Where the final agreement differs from the original proposal, recording the original proposal can provide a useful audit trail showing how the parties arrived at the final arrangement. The important point is that the final contractual terms should be stated clearly and should take precedence over the earlier proposal.
Yes, where the change requires agreement. The fact that an employee has discussed or suggested an alternative does not itself mean that the final variation has been accepted. The employer and employee should be clear about the final terms that have been agreed.
Yes. Contract variations can be negotiated, and the final arrangement may be different from both the employer's original proposal and the employee's initial alternative. The agreement should simply record the final terms that both parties have accepted.
No, not simply because it was proposed. A proposal is not the same as an agreed contractual term. Where the parties subsequently agree an adjusted arrangement, the final agreed terms should be clearly identified as the terms that will apply.
Employees do not necessarily have to sign a new contract for agreed changes to take effect. However, obtaining written acknowledgement is good practice because it creates clear evidence of what was agreed. The employee should have the opportunity to check the document and raise any questions or concerns.
HRDocBox templates provide a practical framework 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 way to document the original proposal, agreed adjustment and final contractual position.
How this content is developed and reviewed
The Contract variation agreement (with adjustment to original proposal) 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."
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