Change of Employment Contract - Sample Letter

blog-publish-date 31 July 2020

Ensure compliance when making a change to your employees’ terms & conditions with this change of contract letter template.

What is an employment contract amendment letter

It’s a legal document to ensure you have the employee’s consent to make a proposed change to their terms & conditions. In it, you’ll set out the change you want to make, and the impact this will have.

Do I need to use this template?

If there is a variation clause in the employee’s contract you may not have to issue a letter. However, it’s best practice to do so. Issuing a letter helps avoid confusion and allows the employee to prepare for the change.

If you don’t have a variation clause, you must issue a letter informing the employee of the change.

Can an employee use this template and when should you issue it?

No. An employee is able to request changes to their employment contract. This letter won’t help them do that.

They can request a change via letter or by speaking to their line manager. In cases where this results in a change, you must issue a letter confirming the change.

There are a number of scenarios in which you need to issue this letter. These include:

-      Pay changes

-      Changes to working hours

-      Changes to location of work

-      Change in duties or role

-      Changes to employee benefits

More than this, you should issue the letter for the purpose of:

-      Informing an employee that you’re planning on changing their employment terms

-      Gaining the employee’s approval of the changes

-      Advising the employee that a consultation meeting will take place if they don’t agree to the terms

What is included in this template?

This sample letter to amend the contract of employment covers:

-      The reason for making a change to the contract

-      Details of the change to terms that you’re going to make

-      Optional arrangements for consultation

It’s also important to note that this template is for use when you don’t have a variation clause.

How to use this template

Issuing this letter alone won’t be enough to protect you from constructive dismissal claims. You have to follow the right process to ensure compliance. Seeking the agreement of the employee is a significant part of that.

You must give reasonable notice too. A major change will require much more notice than a minor one. If you expect an employee to relocate to the other side of the country, they’ll need a few weeks at least.

A pay change, however, could take place within a week with no disruption. You can find out more about how much notice to give when changing an employment contract here[1] 

Communication is key throughout the process. If the employee knows the nature of the change and the timeframe, they’re less likely to have a grievance.

How Croner can help

A contract change may seem simple, but it can be fraught with risks. To ensure you don’t fall foul of them, you can seek the support of a Croner expert. We can help at all stages of the contract changing process, offering 24/7 advice.

If you’re looking to make a change, or are worried about how a current one is going, speak to an employment law adviser today on 01455 858 132

Download your sample letter

Your sample letter to change the terms and conditions of employment is free to download. All you need to do is input your details and the relevant change to terms & conditions.

REMEMBER: issuing this change of employment contract letter template alone will not ensure your compliance. To protect yourself from claims of constructive dismissal or discrimination, follow a fair process. If you need further direction, don’t hesitate to speak to a Croner expert by calling 01455 858 132