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Contract variation proposal letter

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Terms and conditions template toolkit:

If you wish to vary an employee's contract / terms and conditions, issue this model letter template as a proposal of the variation, and to request a meeting to discuss.

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5 mins
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What is a Contract variation proposal letter?

When an employer needs to make contractual modifications to an employee's terms and conditions, they should always do so after consulting and agreeing with the employee(s).

Employers might occasionally be justified in unilaterally modifying workers' terms and conditions by terminating their contracts and re-hiring them on new terms and conditions under extreme situations, when there are legitimate and compelling business demands and agreement cannot be achieved.

'Fire and rehire' procedures should be used only as a last resort if revisions to employment contracts are critical and voluntary agreement is not available.

Applicable legal jurisdictions
In which jurisdictions can this letter be used?
Great Britain & NI (United Kingdom), Worldwide

Contract variation proposal [Delete this line]

[Company name]

[Sender address]



[Recipient name]

[Recipient address]


Dear [Recipient first name],

Following the [group/department/team] meeting on [date], you will be aware that [Company] is proposing a change to your terms and conditions of employment.

The proposed variation is [describe the variation in detail, such as a reduction in salary, new working hours, or a change of workplace].

The rationale for the change is [provide arguments for the suggested modification].

We would like to meet with you individually to discuss the proposed change to your employment contract. We propose holding this meeting on [day], [time], and [location].

[name] will chair the meeting, and [name] will also be present. The meeting will be an opportunity to discuss.

  • The reasons why we feel that it is necessary to make the variation.
  • How it impacts on you as an individual;
  • The alternatives to making the variation.

If the time or date of the proposed meeting is not suitable for you, please contact me and I will endeavour to reschedule the meeting to suit all parties.

Yours [faithfully | sincerely],



[Sender name]

[Sender job title]

[Sender telephone]
[Sender email]

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Terms and conditions template toolkit:

In which communication or process sequence does this template belong?

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Contract variation proposal letter template
Next step
Dismissal and re-engagement proposal letter template

Our Dismissal and Re-Engagement Proposal Letter Template assists in proposing changes while complying with UK employment regulations.

Contract variation proposal letter
contract variation proposal letter