What is a Letter to Amend an Employment Contract?
A Letter to Amend Employment Contract is a letter to notify employees about a change in their Employment Contracts to comply with new privacy laws. This Letter to Amend Employment Contract requires the employee to acknowledge receipt and agree to the amendment by signing on the letter and returning it to the company.
When to use a Letter to Amend an Employment Contract?
An Employment Contract is a contract by which a company hires an employee. The Employment Contract sets out detailed provisions on various aspects of employment. When drafting an Employment Contract, the employer should be aware of certain statutory provisions in determining the terms of employment, for example, the amount of minimum wage (if applicable), rest days, paid annual leave, statutory holidays, or maximum working hours (if applicable). There might be different situations in which a company can use a letter to amend an employment contract. For example:
- Change in working hours
- Change in working location
- Change in annual leave
- Change in employee salary or benefits
- Change in duties and responsibilities
Can an employer change your employment contract?
While hiring any new joiners, an employer can add a clause or right to unilaterally change the employment terms. However, it might have legal consequences so it is not advisable to change the employment contract terms without the consent of the employee.
Can I refuse to change my contract?
In cases where you do not want to change your contract, an employer cannot enforce a change forcefully, but they can terminate your contract (by giving notice) and offer you a new contract with revised terms. In case your employer tries to make the changes without you being onboard, make yourself heard immediately. Try and do this in writing so you have proof of inquiry. Remember if you continue working, it can be taken as acceptance of the new provided terms.
What are the things to include in an employment amendment agreement?
These are the basic things to include in an employment amendment agreement: Parties involved: This includes the basic information about the parties involved. I.e.; employee and employer. Amendment details: This includes which part of the employment agreement is changed along with a proper description. For example, change in working hours, pay, or location. Nature of the change: The nature of change should be properly recorded in a letter to amend the employment contract. This basically includes the addition, deletion, or modification of certain clauses in an existing employment contract. Date of Amendment: The date on which the contract has been amended should be clearly written for future reference. Applicable law: This includes the details of existing applicable law under which an employment amendment agreement is done.
Conclusion
A Letter to Amend an Employment Contract is used by an employer to change the terms and conditions of an employment contract. There might be various reasons for changing the terms in an employment contract like; changes in the salary, working hours or location of the job.
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