Changing an Employment Contract: When You Need a New Written Statement
Employment Rights Act 1996, Sections 1–4 · England, Wales & Scotland · Updated for 2026
Draft an updated statement
Once a change has been agreed, put the new terms in writing. This currently runs on our general Written Statement of Terms builder rather than a document mapped field-by-field to Section 4 of the Employment Rights Act 1996 — use the output as a draft to adapt, not a finished statement of change.
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Updates as you fill inChanging an employment contract is not something an employer can generally do by simply announcing it. Most terms in an employment contract, whether about pay, hours, job title or workplace, are only binding once both sides have agreed to them, and that principle doesn't disappear once the contract is signed. What changes is the process: once a change is agreed, the Employment Rights Act 1996 places a separate, statutory duty on the employer to notify the employee of that change in writing, on top of whatever contractual variation process was used to agree it. This page covers both halves: how changes can lawfully be made, and when a written statement of the change is legally required.
Can employment terms be changed?
Yes, but not unilaterally in most cases. An employment contract is a two-way agreement, so changing it usually needs the agreement of both employer and employee. There are three main routes:
Express agreement
The employer proposes the change, the employee agrees, usually in writing or by email. This is the safest route for both sides and the one most solicitors recommend.
Implied agreement through conduct
The employee keeps working under the new terms without objecting. This can amount to agreement over time, but it's a weaker basis than express consent and easy to dispute later, particularly if the employee didn't realise a term had changed.
A contractual flexibility clause
Some contracts include a clause allowing the employer to vary specific terms, such as workplace location within a defined area. These clauses are read narrowly by tribunals and courts, and using one outside its intended scope can itself be a breach of contract.
An employer that changes terms without agreement or a valid contractual basis risks a breach of contract claim, an unlawful deduction from wages claim if pay is affected, or a constructive dismissal claim if the employee resigns in response to a fundamental change. There's no situation in which an employer can lawfully change every kind of term freely — the process depends on what's being changed and what the contract already allows.
Which changes must be confirmed in writing?
Section 4 of the Employment Rights Act 1996 requires a written statement of the change whenever there's a change to any matter that would have had to be included in the original Section 1 written statement. In practice, that covers:
- Pay and how often it's paid
- Hours of work
- Holiday entitlement
- Place of work
- Job title or role description
- Notice periods, either side
- Sick pay terms
- Pension arrangements
- Collective agreements affecting the role
- Disciplinary and grievance procedures
This is a separate duty from getting the employee's agreement to the change itself. Getting consent makes the change contractually valid. Sending the written statement of change is what the law separately requires once the change has taken effect, agreed or not.
When must the employer notify the employee?
Common changes and how they're handled
| Change | Usually needs consent? | Written statement of change required? |
|---|---|---|
| Pay increase | No — rarely disputed, but still notify in writing | Yes |
| Pay cut | Yes | Yes |
| Reduced or increased hours | Yes | Yes |
| New workplace / relocation | Yes, unless a valid mobility clause applies | Yes |
| Job title change with same duties | Often treated as minor, but confirm in writing | Yes |
| New line manager, same role | No — not a Section 1 particular | No |
| Change to benefits, e.g. private healthcare | Depends whether contractual or discretionary | Only if it was a Section 1 particular |
| Longer notice period | Yes | Yes |
How to update a written statement
- 1Agree the change first. Confirm consent in writing where possible, even a short email reply saying "I agree" is enough to create a clear record.
- 2Set an effective date. The one-month notification clock runs from when the change takes effect, not from when it was agreed, so make the effective date explicit.
- 3Issue the written statement of change. This can be a short letter or amendment document referencing the original written statement and setting out only what's changed — it doesn't need to restate every particular.
- 4Keep both documents on file. The original statement and the record of changes together should reflect the employee's current terms — if changes stack up over several years, consider reissuing a full, consolidated statement.
Contract variation letter example
Employer compliance checklist
- ✓Confirm whether the change needs the employee's consent, and get it in writing.
- ✓Check the original contract for any flexibility or mobility clause before relying on one.
- ✓Set and record a clear effective date for the change.
- ✓Issue a written statement of the change within one month of that date.
- ✓Store the updated statement alongside the original, not as a replacement for it, unless reissuing in full.
- ✓For pay or hours cuts, consider consultation obligations, which can apply separately, especially where 20 or more employees are affected.
- ✓Don't treat "fire and rehire" as a first option — take advice before using it.
If you're an employee facing a proposed change
Read the proposal carefully and check it against your existing contract and written statement. Ask what happens if you don't agree, and get any verbal reassurances put in writing before you respond. You're not obliged to accept a change just because your employer has asked, though refusing a reasonable, well-justified change can sometimes lead to your employer proposing dismissal and re-engagement on the new terms, which carries risk for them as much as for you.
If a change has already happened and you were never sent a written statement of it, that's a breach of Section 4. It's rarely worth a standalone tribunal claim on its own, but it can be added to compensation if you have another claim, in the same way as a missing initial written statement. See our related guide on employers who don't provide a written statement at all for how that route works.
Frequently asked questions
Can my employer change my contract without asking me?
Not usually, and not for terms that were expressly agreed. Most changes need your consent, whether given in writing, verbally, or through your conduct — for example, continuing to work under new terms without objecting can sometimes count as agreement, though relying on silence alone is risky for an employer. A few contracts include an express clause letting the employer vary certain terms unilaterally, but even then the clause has to be used reasonably and for the purpose it was written for.
Does my employer have to update my written statement every time something changes?
Yes, for anything that falls within the list of particulars covered by sections 1 to 3 of the Employment Rights Act 1996 — pay, hours, job title, holiday, place of work, notice periods, sick pay, and a handful of others. The employer has one month from the date the change takes effect to give you a written statement of the change.
What if I don't agree to a proposed change?
You can refuse. Your employer then has a few options: leave your terms as they are, negotiate further, or in some cases end your contract and offer re-engagement on the new terms — sometimes called 'fire and rehire.' That route carries its own legal risks for the employer, including potential unfair dismissal claims, and is generally treated as a last resort rather than a routine tool.
Is a verbal agreement to change my contract legally binding?
A verbal agreement can be binding on the underlying contract terms, but it doesn't satisfy the separate statutory duty to notify the change in writing within one month under Section 4. Even where you've agreed a change verbally, get it confirmed in writing for your own records and to keep your employer compliant.
Can my employer cut my pay or hours without my agreement?
Cutting pay or hours is a change to a core term and normally needs your consent. Doing it without agreement can be a breach of contract, and depending on how you respond, could support a claim for unlawful deduction from wages or constructive dismissal. There are limited exceptions, such as a genuine, narrowly-drafted flexibility clause that was already part of your contract.
Related tools and guides
Sources
Methodology and editorial review
This page is checked against the current text of the Employment Rights Act 1996 on legislation.gov.uk, along with GOV.UK and ACAS guidance on contract variation. It doesn't cover collective bargaining or redundancy consultation requirements in detail — those involve additional statutory processes beyond the scope of a single written statement.
This is general information, not legal advice. Get advice from ACAS or a solicitor before making or responding to a significant contractual change, particularly one involving pay cuts, redundancy, or a large number of affected staff.
Last updated: July 2026.