How do I change employment contracts lawfully?
Start with the existing agreement
Read the original contract first to see whether it allows changes, what notice is required, and how changes must be documented. Some contracts say changes must be in writing and signed, while others allow changes with written notice. Local law can add rules, so the contract alone may not settle the question.
Changes that reduce pay, cut hours or alter core duties usually need the worker's agreement. Routine updates, such as a new policy, may be allowed with notice, but check local requirements before rolling them out.
- Check the amendment clause in the original contract
- Give written notice with the effective date
- Explain the reason for the change
- Get a signed amendment for pay or schedule changes
- Keep copies of the old and new terms on file
Document and communicate the change
Write the change as an amendment that names the original contract, lists exactly what changes, and states the effective date. Ask the worker to sign and date it, and keep a copy for your records. Avoid changing terms through verbal promises, since disputes often start there.
If a worker refuses a proposed change, do not apply it on your own. Discuss options, and consider professional advice if the change affects a large group of staff.
Common mistakes
- Changing pay or schedules verbally and assuming the worker accepted.
- Applying a change before the required notice period has passed.
- Updating one worker's terms but not documenting the change in your files.
