Include a variation clause in a contract of employment

Key points

• An employer may want to vary employees' contracts in a number of circumstances, for example to change their hours to meet a change in demand, or to change the place of work if premises are closed or sold.
• Including an appropriate variation clause when drafting a contract can make the process of varying contracts more straightforward, although the employer will still need to exercise caution when implementing a change.
• It is important that a variation clause is drafted carefully. If it is challenged, it is likely that the courts will interpret the clause restrictively.

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