During the course of employment, there are several reasons that an employer may require a change to an existing employee contract. The simplest way to address this is to provide an amendment to the contract, as opposed to an entirely new employment agreement.
There are a variety of issues that may change over the course of any given employment, including, but not limited to, the following:
- The employee’s base salary
- The bonus structure
- Updates in the employee’s responsibilities and duties
- Changes in the number or hours or days that the employee will work
- Updates in employee benefits
As the above does not change or alter the entire existing employment agreement or the overall concept of the agreement, an amendment to change just those few areas is the easiest way to ensure that all parties are in agreement.
The amendment to any contract will contain the following information:
- Reference to the original agreement so it is clear what is being amended.
- The areas of the original agreement that are being changed and/or deleted and what those specific changes are. This should be very clear and without ambiguity.
- Language that indicates that the rest of the original agreement remains valid and enforceable against all parties.
- Each party to the original agreement will be required to sign the amendment for it to be binding on the parties.
Providing an amendment allows the parties to update the agreement over time and to adapt to any changes that may occur during the course of the original agreement. Amendments are very common and may be the optimal choice to allow the parties to benefit with changes to the agreement while still maintaining the business relationship.
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