What is this variation of contract of employment letter template?
Do you need to vary the terms of an employee's contract? Look no further! This variation of contract of employment template can be used to communicate and formalise the changes to an employee's existing terms of employment. This letter is drafted from the perspective of the employer and ensures that the unaffected terms of the employee's contract remain the same.
What are the benefits of using this variation of contract of employment letter template?
If you're contemplating changes to an employment contract, it's important to communicate and document the changes to prevent uncertainty. Here are some key advantages to using Docue's variation of contract of employment letter template:
Legal compliance: If an employer is changing the "main terms" of an employee's contract, e.g. pay, place of work, working hours, holiday, etc. these changes must be provided in writing to the employee as soon as possible, no later than one month of the change. In some cases, such as for a pay rise, an e-mail may be sufficient, but an employer should always ensure any changes are compliant with employment laws and the terms of the employee's pre-existing contract. Using this template will not only help you ensure that changes are legally compliant, but it also shows the employee that their employer is serious about getting things right.
Avoiding disputes: Using this variation of the employment contract letter ensures everyone is on the same page, reducing uncertainties and potential disputes about the variations in future. Typically, both the employer and employee need to agree on any alterations to the employee's contract. Without a documented record of these changes, the likelihood of disputes increases, potentially causing conflicts between the employer and employee. Using a template establishes a clear understanding and agreement between both parties, fostering a harmonious working relationship
Written record of mutual agreement: It's always a good idea to obtain the employee's written agreement to the changes. This variation of the employment contract letter includes an optional signature request from the employee that ensures that you have the employee's consent to make the proposed change to their contract. If the contract is varied by way of mutual agreement, the employee's acceptance should be documented, and both parties should keep a copy for their records. Keeping a written record of the variations in Docue's storage vault will provide peace of mind for both parties as all documents can be easily accessed at the click of a button.
Why might an employer need to vary their employees' terms of employment?
Employers may find it necessary to modify the terms of employment for various reasons, such as ensuring alignment with evolving organisational needs, job promotions or to comply with new legislation. Here are some common scenarios:
Changes in the employee's role: As businesses grow, employees may take on new responsibilities or may relinquish certain aspects of their role, prompting adjustments to their contractual terms.
Employee promotion or pay rise: Recognising exceptional performance through promotions or salary increases may require corresponding changes to reflect this in the employee's terms of employment.
Operational requirements: Shifts in business operations, such as changes in location or working hours, may require contractual adaptations to accommodate these operational adjustments.
Company restructuring: During organisational restructuring, roles, responsibilities, and reporting lines may be redefined, which may require changes to employment contracts.
Financial constraints: Economic challenges may compel companies to make adjustments in remuneration, benefits, or working hours to navigate financial constraints responsibly.
Flexible working request: Accommodating an employee's request for flexible working arrangements may lead to alterations in the employment contract terms. For more information about flexible working requests and an employee's legal right to request, check out the government website.
Health and safety measures: In response to evolving health and safety regulations, employers may need to implement changes in working conditions, potentially affecting contractual terms.
Regulatory or legal changes: Employers must adapt to changes in laws and regulations, which may require amendments to affected terms of an employee's contract to ensure compliance.
There are a vast number of reasons as to why you may need to vary your employee's contract. Created by qualified lawyers, this variation of employment contract letter can address each of the above scenarios. Whether it is due to adapting to evolving roles, acknowledging promotions, aligning with operational shifts, or restructuring due to financial constraints, this template contains model wording that strikes the perfect balance between user-friendliness and practicality that business owners need when it comes to employment matters.
How can the terms of an employment contract be varied?
Just like any other agreement, there are two key methods:
As per the contract terms: Some changes can be made if permitted by the terms of the pre-existing contract - for this reason, it's always important to check the employment contract for any terms that allow you to vary the contract, or look for any clauses that already provide for the change to be made in a certain way (for example, the contract may state that a pay rise only requires a simple e-mail to vary the contract).
With everyone's agreement: Both the employer and employee can mutually agree on any changes to the employment contract.
For more guidance on changing an employee's terms of employment, check out the Acas website.
Does an employee have to agree to changes to their employment contract?
Some employment contracts may include a variation clause, also known as a "flexibility" clause. This allows an employer to make changes to the contract under specific circumstances at its discretion, such as relocating the employee's place of work. However, it's crucial to ensure the enforceability of this clause and to use it only for reasonable changes to the contract.
For example, an employer might have the right to amend the employee's contract to relocate them to a new office for operational reasons. Nonetheless, insisting on relocating to a different country with only 48 hours' notice may not be considered a reasonable change. From a legal standpoint, the safest approach to altering an employee's terms is to obtain the employee's written consent after a consultation to discuss the proposed changes.
If an employer uses a variation clause to implement an unreasonable change or fails to consult the affected employee, it could lead to breach of contract or constructive dismissal claims. Therefore, it's essential to carefully consider the legal implications before making any changes to an employee's terms of employment.
Consulting employees and representatives
When considering changes to employment contracts, it's crucial to engage in a thorough consultation process with all affected employees, workers, and relevant representatives. Before initiating the consultation, the employer should provide preliminary information about the proposed changes to help the affected individual fully prepare for the consultation and understand the changes.
For individual employees or workers: a direct consultation with the affected employees or workers is necessary unless there's a formal arrangement allowing representatives to negotiate changes.
If there's a recognised trade union: a collective agreement may require consultation regarding proposed changes affecting a specific group, known as the bargaining unit.
In summary, a genuine and thorough consultation is not only a legal requirement but also a strategic step to gain employee support, prevent conflicts, and navigate changes successfully.
For more information about consulting with an employee to discuss changes to their contract, check out the Acas guidance here.
Why use Docue?
Simple: Docue is easy to use and can help you create a top-quality variation of employment contract letter in minutes. The platform includes model terms designed by qualified lawyers to help you draft the letter yourself and tailor it to your needs. All you need to do is answer a series of questions, and Docue creates your variation of employment contract letter in real time.
Safe: Once you have created a variation of employment contract letter that is tailored to amend the employee's contract, you can send the contract to the employee for e-signing. After the letter is signed, you can store the agreement in Docue’s storage vault to ensure you always have quick and easy access to your documents in one place.
Transparent pricing: Our pricing is clear and cost-effective, we don’t believe in hidden costs buried in the fine print!
Tags: variation of employment contract, variation of contract of employment
