Change an employee's terms of employment

Before you think about altering any staff contracts, make sure you know exactly what is in the original. Every employee has a contract as soon as they start working for you, even if it has never been written down.

In addition, employees who work for you for a month or more must be given a written statement of main employment particulars within two months of joining. It is not itself a contract, but it can provide evidence of the contract's terms if there is a dispute. Read more on the written statement.

An employment contract typically includes various types of terms:

Express terms

These are terms explicitly agreed upon by both the employer and employee. They can be found in writing or verbally agreed upon. Examples include:

• Job title and description
• Pay rate
• Hours of work
• Holiday entitlement
• Notice periods

Implied terms

These are not written in the contract but are assumed to be part of it due to:

• Statutory rights (like minimum wage, working time regulations)
• Custom and practice within the workplace or industry
• Mutual trust and confidence between employer and employee
• The duty to provide a safe working environment

Incorporated terms

These might be included by reference from:

• Company handbooks or policies
• Terms that might be incorporated from collective bargaining agreements between recognised trade unions and employers

The Labour Relations Agency (LRA) provides guidance on these matters including a webinar recording on Variation of Contract. This webinar focuses on what the terms of an employment contract are and the law around how and when an employer can vary these terms, emphasising the importance of consultation and agreement with employees to avoid breaches of contract or claims of constructive dismissal.