Letter to Amend Employment Agreement
This Letter to Amend Employment Agreement can be sent to an employee to change their salary or other terms of their employment.
(0 reviews)
Last updated January 22, 2025
Under 10 minutes
Suitable for Australia
Written by
Edwin Montoya Zorrilla
Reviewed by
Damin Murdock
Document Overview
This template letter provides an acknowledgement to be signed by the employee to indicate their agreement to the variation to the employment agreement, as contained within the letter. It allows for changes to salary, and other changes. If you would like a simple salary variation letter, see the Salary Increase Letter or the Salary Reduction Letter.
Generally speaking, an employment agreement cannot be varied unilaterally. Likewise, it is illegal to compel an employee to agree to vary the agreement, such as by threatening adverse action. While there is room for flexibility under every agreement, both parties should be on board with any changes that affect its terms, otherwise a range of legal issues, beginning with breach of contract, may arise.
We recommend discussing any change with the employee before taking further action, to maintain good faith between both parties. Once there is "in principle" agreement, you can send this letter and await the employee's response. There is no time limit in theory for the employee to sign and return the letter, but the amendment should be completed before either party changes their conduct in accordance with the new terms.
If there is a question of whether the employee is casual or permanent, it should also be considered in this letter and relevant factors pointed out. For this, we recommend seeking legal advice.
What are the benefits of a Letter to Amend Employment?
A Letter to Amend Employment can be useful to modify or update to the terms of an existing employment contract, without having to create an entirely new contract.
A letter to amend employment is a valuable tool for both employers and employees, as it helps to ensure that both parties are aware of any changes to the employment relationship by:
- Outlining the changes being made to the employee's terms of employment, the letter provides clarity and helps to avoid misunderstandings about the employee's role and responsibilities.
- Establishing as a written record of the changes being made, which can be important in the event of a dispute.
The Legal Risk Score of a Letter to Amend Employment Agreement Template
Our legal team have marked this document as medium risk considering:
- Changes to the salary without a comprehensive review of other employment terms may result in inconsistencies or overlooked areas that could affect overall job satisfaction and performance expectations.
- This document must be prepared carefully to ensure that it is in line with employment legislation.
- The fixed nature of the amendments, with all other terms and conditions remaining unchanged, might not accommodate future adjustments or the evolving needs of either party, potentially leading to rigidity in the employment relationship.
Users familiar with employment agreements should find this document straightforward, but it is advisable to consider the broader implications of the changes and ensure all parties are in agreement to avoid future complications.
Letter to Amend Employment Agreement Checklist
Complete your free Letter to Amend Employment Agreement with our checklist
Review and Sign
Ensure that the recipient of the letter reviews the changes to their employment agreement, particularly the new salary package, and signs the enclosed copy of the letter.
Record and File
Maintain a copy of the signed letter in the employee's personnel file for future reference and to uphold compliance with employment record-keeping practices.
Notify Payroll
Inform the payroll department of the new salary package to ensure that the changes are reflected from the effective date specified in the letter.
View Sample Letter to Amend Employment Agreement
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