{"id":177825,"date":"2022-10-27T19:09:15","date_gmt":"2022-10-27T18:09:15","guid":{"rendered":"https:\/\/legalvision.co.uk\/?p=177825"},"modified":"2022-10-31T22:42:33","modified_gmt":"2022-10-31T22:42:33","slug":"employment-contract-variation","status":"publish","type":"post","link":"https:\/\/legalvision.co.uk\/employment\/employment-contract-variation\/","title":{"rendered":"An Employer\u2019s Guide to Employment Contract Variation in England"},"content":{"rendered":"<p><span style=\"font-weight: 400\">An employment contract is a legally binding agreement between you and your employee. An employment contract will contain the terms agreed by both parties such as the employee\u2019s pay, start date, working hours and the parties\u2019 rights and responsibilities. Whilst your employment contracts need to be drafted when your employees begin their role with you, there may be times as their employment progresses that you need to vary the terms of their employment contracts. You therefore may wish to familiarise yourself with how to legally change the terms of a contract. This article will explain the legal mechanics behind employment contract variation and the implications of improperly amending an employment contract in England.\u00a0<\/span><\/p>\n<p>\u00a0<\/p>\n<h2><span style=\"font-weight: 400\">Context for Employment Contract Variation<\/span><\/h2>\n<p><span style=\"font-weight: 400\">There are many reasons you may need to make changes to your employment contracts. For example, you may need to:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">ensure that they reflect changes to the law;<\/span><\/li>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">accurately detail any changes to an employee&#8217;s role or responsibilities, such as hours of work, job duties or pay rate;<\/span><\/li>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">update organisational changes such as the place where your employee works; or<\/span><\/li>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">harmonise the terms of employment across the business following a reorganisation.<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400\">Ideally, the contract will have an effective variation clause. If so, you will have more flexibility when it comes to making any future amendments to the contract. But even if it does not, there are ways you can still vary the terms.\u00a0<\/span><\/p>\n<p>\u00a0<\/p>\n<h2><span style=\"font-weight: 400\">Making Changes<\/span><\/h2>\n<p><span style=\"font-weight: 400\">Even where there is a variation clause that gives you the right to make unilateral changes, this is not always the best option. Instead, the following steps are the safest way to change your employees\u2019 employment contracts.<\/span><\/p>\n<p>\u00a0<\/p>\n<h3><span style=\"font-weight: 400\">Proposing Changes<\/span><\/h3>\n<p><span style=\"font-weight: 400\">In all instances, you should alert any affected employees to any proposed contract amendments. How you go about this will depend on the circumstances. For example, if just one employee is affected, you will need to discuss the change with them to see if they are content. If many employees\u2019 contracts need to change, you may need to hold a panel or presentation.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400\">Generally, you should inform all affected employees of:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">the substance of the proposal;<\/span><\/li>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">the purpose behind the proposal;<\/span><\/li>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">the timeframe for making the change;<\/span><\/li>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">that they are an employee that stands to be affected; and<\/span><\/li>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">any alternatives to the proposal.\u00a0<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400\">Where affected employees are represented by a trade union, you should inform the representatives. If the change relates to any provision governed by a collective agreement, this creates an additional legal hurdle.\u00a0<\/span><\/p>\n<p>\u00a0<\/p>\n<h3><span style=\"font-weight: 400\">Consultations<\/span><\/h3>\n<p><span style=\"font-weight: 400\">In some instances, you may have a legal obligation to have a formal consultation with any affected employees. However, best practice dictates you should consult with any affected employees regardless of your legal obligations.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400\">A consultation allows you to listen to any concerns and hear your staff&#8217;s views on the proposed changes. Consultation helps you obtain support for the changes proposed to employment contracts.<\/span><\/p>\n<p><span style=\"font-weight: 400\">You will likely need to consult with any employee representatives, either separately or as part of the employee consultation.<\/span><\/p>\n<p>\u00a0<\/p>\n<h3><span style=\"font-weight: 400\">Undertaking Employee Contract Variations<\/span><\/h3>\n<p><span style=\"font-weight: 400\">If you have obtained consent from affected employees, all you need to do is amend the relevant terms. A solicitor can advise you on how to draft and implement any amendments to the contract. At the point the affected employees voluntarily sign the amended contract, the law treats the amendments as effective.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400\">Just because you obtain a signature from an employee does not make it effective. If they allege that you coerced them, the law may not recognise the amendment.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400\">If you have not obtained consent from one or more affected employees but the original contract contains a variation clause, you may be able to unilaterally amend the contract. Though practically, this may not be the best option. 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Changes to employment contracts can be risky and result in tensions in your business if not well managed.<\/span><\/p>\n<p><span style=\"font-weight: 400\">Some of the repercussions of varying your employment contracts are as follows:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">problems with working relationships;<\/span><\/li>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">low employee morale, productivity, well-being or health;<\/span><\/li>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">legal issues such as constructive dismissal claims or breach of contract claims;<\/span><\/li>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\"><a href=\"https:\/\/legalvision.co.uk\/employment\/employment-discrimination\/\">unlawful discrimination<\/a> if changes only affect employees with protected characteristics, such as women;<\/span><\/li>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">loss of valued staff;<\/span><\/li>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">damage to your reputation as an employer; and<\/span><\/li>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">industrial action.<\/span><\/li>\n<\/ul>\n<h2><span style=\"font-weight: 400\">Key Takeaways<\/span><\/h2>\n<p><span style=\"font-weight: 400\">As an employer, you may conclude it is necessary to amend one or more of your employee\u2019s contracts. If so, you should ensure you follow best practices to minimise your <a href=\"https:\/\/legalvision.co.uk\/employment\/reasons-employment-tribunal\/\">legal liability<\/a> and maintain healthy trade relations. When undertaking employment contract variation, you should first propose the changes to your staff and then consult with them. Ideally, you will obtain their consent, which may require concessions on your end, such as a pay rise or reduction in hours.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400\">If you need help understanding how to vary an employment contract in England, our<\/span> <a href=\"https:\/\/legalvision.co.uk\/employment-lawyers-lp\/\"><span style=\"font-weight: 400\">experienced employment lawyers<\/span><\/a><span style=\"font-weight: 400\"> can assist as part of our LegalVision membership. For a low monthly fee, you will have unlimited access to lawyers to answer your questions and draft and review your documents for a low monthly fee. So call us today on <a href=\"tel:+448081968584\" class=\"AVANSERnumber dynamic-number\">0808 196 8584<\/a> or visit our <\/span><a href=\"https:\/\/legalvision.co.uk\/membership\"><span style=\"font-weight: 400\">membership page<\/span><\/a><span style=\"font-weight: 400\">.<\/span><\/p>\n<p>\u00a0<\/p>\n<h2>Frequently Asked Questions<\/h2>\n\n\n<div class=\"schema-faq wp-block-yoast-faq-block\"><div class=\"schema-faq-section\" id=\"faq-question-1666893781580\"><strong class=\"schema-faq-question\"><strong>Why might an employer vary an employment contract?<\/strong><\/strong> <p class=\"schema-faq-answer\">You may decide to vary your employment contracts for several reasons, such as regulatory reform or changes to your business.<\/p> <\/div> <div class=\"schema-faq-section\" id=\"faq-question-1666893788004\"><strong class=\"schema-faq-question\"><strong>What might be the repercussions of varying employment contracts?<\/strong><\/strong> <p class=\"schema-faq-answer\">Where you do not obtain the consent of affected employees, you <a href=\"http:\/\/Five Top Tips for Avoiding an Employment Tribunal in England\">increase your legal liability<\/a> if making unilateral employment contract changes. You may likewise negatively influence trade relationships.<\/p> <\/div> <\/div>\n<div class=\"not-prose m-feedback-prompt\">\n    <!-- Thumbs up\/down bar -->\n    <div class=\"m-feedback-prompt__main\">\n        <div class=\"m-feedback-prompt__title\">Was this article helpful?<\/div>\n        <div>\n            <!--span class=\"m-feedback-prompt__button--text\">Thanks!<\/span-->\n            <button type=\"button\" class=\"m-feedback-prompt__button m-feedback-prompt__button--yes\"\n                    data-analytics-link=\"feedback-prompt:yes\" aria-label=\"Agree\">\n                <i class=\"fa-regular fa-thumbs-up fa-3x\"><\/i>\n            <\/button>\n            <button type=\"button\" class=\"m-feedback-prompt__button m-feedback-prompt__button--no\"\n                    data-analytics-link=\"feedback-prompt:no\" aria-label=\"Disagree\">\n                <i class=\"fa-regular fa-thumbs-down fa-3x\"><\/i>\n            <\/button>\n        <\/div>\n    <\/div>\n\n    <!-- Feedback form -->\n    <div class=\"m-feedback-prompt__form\">\n        <div class=\"m-feedback-prompt__form--thanks \">\n            <div>Thanks!<\/div>\n            <p>\n                We appreciate your feedback \u2013 your submission has been successfully received.            <\/p>\n        <\/div>\n        <form id=\"contact-form\" class=\"m-feedback-prompt__form--form\" action=\"\" method=\"post\">\n            <input type=\"hidden\" id=\"authenticity_token\" name=\"authenticity_token\" value=\"4d339a24e7\" \/><input type=\"hidden\" name=\"_wp_http_referer\" value=\"\/api\/wp\/v2\/posts\/177825\" \/>            <input value=\"https:\/\/legalvision.co.uk\/employment\/employment-contract-variation\/\" type=\"hidden\" name=\"currenturl\"\n                   id=\"currenturl\">\n            <input value=\"An Employer\u2019s Guide to Employment Contract Variation in England\" type=\"hidden\" name=\"currenttitle\"\n                   id=\"currenttitle\">\n            <label>\n                <!-- display on thumbs-up -->\n                <span class=\"m-feedback-prompt__feedback m-feedback-prompt__feedback--yes\">\n                    Can you tell us <span class=\"font-semibold\">why<\/span> you found it helpful?\n                <\/span>\n\n                <!-- display on thumbs-down -->\n                <span class=\"m-feedback-prompt__feedback m-feedback-prompt__feedback--no text-lg\">\n                    How can we better improve this article?\n                <\/span>\n                <textarea name=\"feedbackmessage\" id=\"feedbackmessage\" required><\/textarea>\n            <\/label>\n\n            <div class=\"m-feedback-prompt__form--error\" id=\"form-submit-error\"><\/div>\n            <button id=\"submit-contact-form-button\" type=\"submit\" name=\"commit\" class=\"m-feedback-prompt__form--submit\"\n                    data-analytics-link=\"feedback-prompt:submit\">\n                Submit            <\/button>\n        <\/form>\n    <\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>An employment contract is a legally binding agreement between you and your employee. An employment contract will contain the terms agreed by both parties such as the employee\u2019s pay, start date, working hours and the parties\u2019 rights and responsibilities. Whilst your employment contracts need to be drafted when your employees begin their role with you,<a href=\"https:\/\/legalvision.co.uk\/employment\/employment-contract-variation\/\">Continue reading <span class=\"sr-only\">&#8220;An Employer\u2019s Guide to Employment Contract Variation in England&#8221;<\/span><\/a><\/p>\n","protected":false},"author":13326,"featured_media":3233,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_relevanssi_hide_post":"","_relevanssi_hide_content":"","_relevanssi_pin_for_all":"","_relevanssi_pin_keywords":"","_relevanssi_unpin_keywords":"","_relevanssi_related_keywords":"","_relevanssi_related_include_ids":"","_relevanssi_related_exclude_ids":"","_relevanssi_related_no_append":"","_relevanssi_related_not_related":"","_relevanssi_related_posts":"175895,176595,172791,175605,1800,1816","_relevanssi_noindex_reason":"","editor_notices":[],"footnotes":""},"categories":[35],"tags":[408,1132,1152,1153],"class_list":["post-177825","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-employment","tag-employment-contracts","tag-medium-businesses","tag-employment-contract-variation","tag-changes-to-employment-contracts"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.1.1 - 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Prior to her freelance writing work, Clare worked for UK central government in policy and communication roles. She has also run her own businesses where she founded a magazine and was editor-in-chief. She is currently studying part-time towards a PhD predominantly in international public law. Qualifications: PhD, Human Rights Law (underway), University of Bedfordshire, Post graduate diploma, Law, Middlesex University.\",\"sameAs\":[\"https:\/\/www.linkedin.com\/in\/ms-clare-susannah-f-4a243545\/\"],\"url\":\"https:\/\/legalvision.co.uk\/author\/clarefarmer\/\"},{\"@type\":\"Question\",\"@id\":\"https:\/\/legalvision.co.uk\/employment\/employment-contract-variation\/#faq-question-1666893781580\",\"name\":\"Why might an employer vary an employment contract?\",\"acceptedAnswer\":{\"@type\":\"Answer\",\"text\":\"You may decide to vary your employment contracts for several reasons, such as regulatory reform or changes to your business.\",\"inLanguage\":\"en-GB\"},\"inLanguage\":\"en-GB\"},{\"@type\":\"Question\",\"@id\":\"https:\/\/legalvision.co.uk\/employment\/employment-contract-variation\/#faq-question-1666893788004\",\"name\":\"What might be the repercussions of varying employment contracts?\",\"acceptedAnswer\":{\"@type\":\"Answer\",\"text\":\"Where you do not obtain the consent of affected employees, you <a href=\\\"http:\/\/Five Top Tips for Avoiding an Employment Tribunal in England\\\">increase your legal liability<\/a> if making unilateral employment contract changes. 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