Contract Amendment Letter Template
Formally amend employment contract terms. ACAS-compliant templates for UK employers. Updated for 2025.
Important Legal Notice
Under UK employment law, you cannot unilaterally change an employee's contract without their agreement. Contract amendments require mutual consent or must follow a formal consultation process. Unauthorized changes can lead to constructive dismissal claims. Always seek employee consent before implementing changes.
When Do You Need a Contract Amendment Letter?
A contract amendment letter is used to formally document changes to an existing employment contract. According to ACAS guidelines, any changes to contractual terms must be agreed in writing and provided to the employee within one month.
Common reasons for contract amendments:
- Salary increase or pay structure changes
- Job title or role responsibility changes
- Working hours or pattern adjustments
- Change of work location
- Promotion or departmental transfer
- Variations to holiday entitlement
- Updated benefits or pension contributions
- Changes to notice periods
What Must Be Included in an Amendment Letter?
The Legal Process for Contract Changes
1Propose the Change
Issue a formal contract amendment letter clearly stating what will change and why. Include the effective date and explain any benefits to the employee where possible.
2Consultation Period
Give employees reasonable time to consider the changes (typically 7-14 days minimum). Offer a meeting to discuss concerns and be open to negotiation where appropriate.
3Obtain Written Agreement
The employee must sign and return the amendment letter to confirm acceptance. Keep this with their personnel file as proof of agreement. If they refuse, you may need to consider alternatives or formal consultation.
4Update Records
Once agreed, update your HR systems, payroll (if relevant), and provide the employee with a copy of the signed amendment for their records.
What If the Employee Refuses?
If an employee does not agree to the proposed changes, you have limited options under UK law:
Continue With Existing Terms
The safest option is to maintain the current contract. You cannot impose changes without consent.
Negotiate a Compromise
Discuss concerns and see if you can reach a middle ground that works for both parties.
Terminate and Re-engage (Last Resort)
End the current contract with proper notice and offer re-employment on new terms. This carries high legal risk and should only be considered with professional legal advice.
Warning: Imposing changes without consent or dismissing employees who refuse can result in unfair dismissal or breach of contract claims. Always seek professional HR or legal advice for complex situations.