How can I change an employee's terms of employment?

Guide to how to approach a variation in contracts of employment. It needs to be done right or you may face employment tribunal claims.

There may be times when it is necessary to change the terms and conditions of an employee's employment contract. However, there are certain changes which are required by law to be put in writing and signed by the employee to demonstrate their consent to them. This is possible through a document referred to as a 'Statement of changes in terms of employment'. This document allows you to specify the changes to the terms of employment in writing and protect your business from a potential employment tribunal claim in the future.

Start your 'Statement of changes in terms of employment' now

In the 'Statement of changes in terms of employment' document you can alter the contractual terms outlined in the employee's original employment contract, such as hours worked, salary and holiday entitlement. Changes to the employee's job title and job description should also be specified in the document, as should any alterations to their hours of employment. Additionally, if the employee's place of work changes, this will need to be recorded.

Once complete, the employer must send the 'Statement of changes in terms of employment' to the employee no later than one month after the change(s). The employer should draft two copies of this document. The first statement, which is signed only by the employer, must be retained by the employee for his or her personal reference. The second statement must be signed by both the employer and employee and must be retained by the employer for future reference.