Brad is on the roll of solicitors of England & Wales but does not hold a practising certificate and does not provide legal advice.
Updated June 2026 · England & Wales
Employment relationships rarely stay static. Pay rises, new duties, a change in working hours, a move to hybrid working, all of these can mean the original contract no longer reflects what's actually happening day to day. When the terms written down need updating, a Deed of Variation is the usual route for recording the change cleanly and with both sides on board.
It sits alongside the existing contract rather than replacing it, which keeps things simple when only a few clauses need adjusting. This page walks through what the document does, when it tends to be used, the key rules around employee consent, and the practical points worth thinking about before anything gets signed.
If you'd rather talk through your situation with someone before making a decision, a phone call with an experienced legal adviser is available at the bottom of the page.
What this document is
A Deed of Variation for an employment contract is a short written instrument that changes one or more terms of an existing contract of employment by mutual agreement between employer and employee. Rather than tearing up the original agreement and drafting a fresh one, the deed simply records what is being altered, added, removed, or replaced, and confirms that both parties accept the change.
Typical uses include updating a job title, adjusting salary or bonus arrangements, changing hours of work, amending notice periods, or introducing new clauses such as restrictive covenants or a revised place of work. It's worth distinguishing this from a variation agreement used in commercial or business-to-business contracts, which follows different conventions.
A deed is often preferred in the employment context because it provides a clear evidential record and removes any argument about whether something of value was exchanged in return for the change. Once signed by both sides, the original contract continues in force, but reads subject to the variations set out in the deed.
How to use this document
Identify exactly what needs to change. Before drafting anything, pin down which clauses of the existing contract are being altered and why. Vague wording causes disputes later, so be specific about the old position, the new position, and the effective date the change takes hold from.
Talk to the employee early. Variations depend on genuine agreement, so raise the proposed changes in conversation first. Explain the reasoning, listen to concerns, and allow reasonable time for questions. A rushed or pressured discussion can undermine consent and create problems if the change is later challenged.
Put the variation in writing as a deed. Draft the document so it clearly references the original contract, sets out each amended term, and confirms that all other provisions continue unchanged. Using a deed format gives the variation a stronger footing than a simple letter or email exchange.
Sign, witness, and date the deed properly. For a deed to be validly executed by an individual in England and Wales, the signature generally needs to be witnessed by an independent person who is not a party to it. Both employer and employee should sign, and each should keep a copy alongside the original contract.
Update internal records and follow through. Make sure payroll, HR systems, and any managers affected are told about the change so the new terms are actually applied from the agreed date. A deed that sits in a drawer while old practices continue can cause confusion about which version really governs the relationship.
Q Can an employer change an employment contract without the employee agreeing?
As a general rule, no. Employment contracts are agreements between two parties, and changing the terms unilaterally is usually a breach of contract. An employee faced with an imposed change may be able to refuse, work under protest, or in serious cases resign and claim constructive dismissal. Some contracts include limited flexibility clauses, but these are interpreted narrowly by the courts.
Q Is a Deed of Variation different from a side letter or an email confirmation?
Yes. A side letter or email can record agreed changes, but a deed carries more formal weight and avoids arguments about whether both sides gave something of value in return for the change. Because a deed does not require consideration to be enforceable, it is often the safer choice for employment variations, particularly where the change benefits only one side.
Q Do minor changes like a small pay rise need a Deed of Variation?
Not always. Straightforward improvements such as a pay increase are often confirmed by letter, because the employee is clearly better off and unlikely to dispute it. A deed becomes more useful when the changes are significant, mixed in effect, or touch on sensitive areas like hours, duties, notice periods, or restrictive covenants where clarity matters most.
Q What happens to the rest of the contract after a variation?
Only the clauses specifically amended by the deed change. Every other term of the original employment contract continues to apply as before. That's why well-drafted deeds include wording confirming the original contract remains in full force except as varied, so there is no doubt which provisions still govern the relationship going forward.
Q Can a Deed of Variation be used to reduce an employee's pay or benefits?
It can, but only with the employee's genuine, informed agreement. Pressuring someone to sign away existing rights can lead to claims for unlawful deduction of wages, breach of contract, or constructive dismissal. Employers considering downward changes should think carefully about consultation, the business reasons, and whether collective consultation rules apply where larger groups are affected.
Q Does the deed need to be witnessed?
For a deed signed by an individual in England and Wales, a witness to the signature is generally required. The witness should be independent, meaning not a party to the deed and ideally not a close family member. Companies can execute deeds in other ways, such as signature by two directors, under the Companies Act rules.
Q How long does a Deed of Variation remain effective?
Indefinitely, unless the deed itself says otherwise. The varied terms become the ongoing terms of the employment relationship and continue until changed again by a further agreed variation, replaced by a new contract, or brought to an end when the employment itself ends.
Not sure if a Deed of Variation fits your situation?
Changing employment terms can look simple on paper but throws up awkward questions about consent, wording, and what happens if the employee pushes back. An experienced legal adviser can talk through the change you're considering and give you practical perspective tailored to what you describe on the call.
✓Plain-English answers to your specific questions about varying the contract
✓Practical perspective on the change you're considering based on what you describe
✓What to watch out for when seeking employee agreement in your circumstances
✓Clarity on your next steps before anything gets signed
Personal call · For information only · Independent advisers
Written & reviewed by
Brad Askew Solicitor (non-practising)
Brad is on the roll of solicitors of England & Wales but does not hold a practising certificate and does not provide legal advice. LegalDocuments.co.uk is not a law firm and does not provide regulated legal advice.
This article is for general information only. It is a tool to help you find your way — not legal advice, and not a substitute for speaking to a qualified adviser about your situation.
