How to Legally Update Employment Contracts: Navigating 90 Days’ Notice and Key Triggers

Employment contracts aren’t meant to be written in stone. Just as your business evolves, so too should your employment agreements. But when is the right time to update these contracts, what’s involved in making changes, and what does “90 days’ notice to change contract” actually mean in legal terms? If you’re thinking about rolling out new terms to your workforce, you’re in the right place. In this guide, we’ll walk you through common triggers for reviewing or changing employment contracts, best practices for legally updating them (including the role of notice periods like 90 days), and the practical steps you should take to keep your business protected and compliant - with plenty of plain-English advice along the way. Getting your contracts right is about more than ticking boxes: it’s about building trust, managing risk, and positioning your business for long-term success. Let’s dive in!

Why Would I Need To Review Or Change An Employment Contract?

First things first - it’s totally normal to revisit employment contracts from time to time. In fact, regular contract reviews are a smart business move. Common reasons for changing employment contracts can include:

• Promotion or a change in role: When an employee steps up to a new position with different duties, pay, or working patterns, their contract needs to reflect that.
• Business reorganisations: Mergers, acquisitions, or even internal restructures may require a change in job titles, reporting lines, or employment terms.
• Legal or regulatory changes: UK employment law evolves rapidly-regular reviews keep your contracts compliant and enforceable.
• Disputes: Sometimes, disputes over unclear clauses or out-of-date terms spark a contract refresh.
• Redundancies, relocations, or changes to company policies: When your workplace or operations shift, contracts often need an update to match.
• Addition or amendment of restrictive covenants: To protect the business from competition by former employees or leaks of confidential information, you may need to tweak non-compete, confidentiality, or non-solicitation clauses. Read more about restraint clauses here.

The bottom line? Contract changes aren’t just about your business’s needs-they’re often about ensuring legal compliance and clarity for all parties involved.

How Often Should I Conduct A General Contract Review?

It’s best practice to do a company-wide review of your employment contracts regularly - not just when something major crops up. Here’s why:

• Staying compliant: Employment law can change multiple times a year. For example, rules around holiday pay, minimum wage, or family leave can shift. Out-of-date clauses could leave your business exposed to claims or fines.
• Standardisation: Ensuring contracts are consistent makes HR and payroll management easier, especially as you grow your team.
• Responding to competition: If you operate in a sector where poaching or restrictive covenants are hot topics, you’ll want your contracts to reflect the latest best practices.

A good rule-of-thumb: aim for a full review at least once a year, and always after any major employment law update (such as changes to the Employment Rights Act 1996 or new statutory requirements). If you’re unsure what needs to be updated or want an expert’s review, it’s wise to seek advice from a legal professional.

What Triggers The Legal Need To Update A Contract?

There are plenty of scenarios where it’s not just a good idea, but a legal requirement to update or add to an employment contract. Some of the key triggers include:

• Material change in terms: If there’s a significant alteration to pay, benefits, working hours, duties or work location, this must be formally recorded.
• Statutory changes: New laws may override previous contract clauses, so you’ll need to make sure your documents comply (for instance, the right to request flexible working or new health and safety obligations).
• Company restructures: Mergers, takeovers, or reorganisations nearly always involve contract updates.
• Shift in employment status: Moving someone from contractor to employee (or vice versa) requires a whole new legal arrangement. See our guide on the difference between employee and contractor.

Whenever you’re in doubt, it’s better to check if a change is significant enough to require an updated contract. Failure to do so could mean a clause is unenforceable or increases your legal risk.

Understanding The “90 Days’ Notice To Change Contract” Rule

You might have heard talk of a “90 days’ notice” period to change an employment contract in the UK. But does this apply to every contract? Are you legally required to give 90 days’ notice for any update? The reality is: UK employment law doesn’t specify a hard-and-fast “90 day notice” rule for changing contracts. The required notice period will usually depend on one or more of the following:

• The contract itself: Many employment contracts specify the notice required to change terms (often matching or aligning with the notice period for ending employment).
• Statutory minimums: For dismissals, statutory notice is one week after one month’s service, rising to a maximum of 12 weeks. For contract changes, there is no set statutory requirement, but “reasonable notice” must be given. Sometimes, 90 days is used as a “best practice” standard for major changes, particularly in senior roles or when company-wide changes affect lots of staff.
• Nature of the change: Big shifts (for example, reduction in pay or significant change in working conditions) demand greater notice and, crucially, employee consent. Some changes, like promotions, may be agreed and take effect more quickly.

Long story short: If your contract says you need to give 90 days’ notice before making a change, you’ll need to stick to it. If not, default to what is “reasonable” under the circumstances - and always prioritise clear and transparent communication with employees. Tip: Unilateral changes (changing terms without employee agreement) risk claims for constructive dismissal or breach of contract. Engage your staff in consultation whenever possible and document all changes formally. Learn about legally changing a contract here.

What Are The Legal Steps When Updating Employment Contracts?

If you’re considering introducing new terms, here’s a step-by-step guide to doing it right:

1. Identify What Needs To Change Start by reviewing the current contract and noting which clauses need updating (role title, salary, benefits, job responsibilities, remote working policy, etc.). Consider upcoming legal changes that might impact contract terms.
2. Consult With Employees Legally, significant contract changes require employee agreement. Set up a meeting or consultation with affected employees or their representatives (such as a trade union, if applicable). Explain the need for the change, listen to feedback, and aim to get written consent.
3. Provide Proper Notice Give as much notice as practical, based on the employment contract and the scale of change. For big changes, 90 days’ notice is often sufficient to be considered reasonable - but always consult the contract and any collective agreements.
4. Formalise The Changes Document the agreed changes in writing, either as a new contract or a written amendment/letter of variation. Both parties should sign to confirm agreement. Read more about contract amendments here.
5. Communicate & Update Documentation Make sure employees receive a copy of any new contract, amended contract, or confirmation letter. Update your HR records accordingly and ensure everyone’s clear on the new terms.
6. Review for Consistency & Compliance After making changes, double-check that your new contracts are consistent across staff where appropriate, and that they comply with current UK employment law. If necessary, seek a contract review by a legal expert for peace of mind.

Avoid making changes on an ad hoc basis-systematic, company-wide reviews help spot inconsistencies, pre-empt disputes, and keep your risk in check.

How Do I Protect My Business When Making Contract Changes?

Changing contracts isn’t just a box-ticking exercise-it’s a chance to strengthen your legal protections and align with business strategy. Areas where you may want to tighten or clarify terms include:

• Confidentiality clauses to safeguard sensitive information.
• Non-compete and non-solicitation clauses to prevent staff from poaching clients or joining competitors immediately after leaving. Learn more about non-compete agreements here.
• Intellectual property (IP) clauses to confirm ownership of inventions and creations made at work. Read about protecting your business’s IP here.
• Flexible working and remote work arrangements - these are more important than ever in the post-pandemic era.
• Data protection and privacy compliance - ensure your contracts reflect up-to-date obligations under GDPR and the Data Protection Act 2018. Find out what you need to know about GDPR here.

If you’re issuing new contracts as part of routine updates, consider this a golden opportunity to fix any weak points. At the same time, avoid excessive restrictions-courts won't enforce unfair contract terms, especially those that attempt to restrict basic employee rights. Whenever in doubt, get your contracts reviewed by a qualified employment lawyer.

What If Employees Refuse Changes To Their Contract?

Ideally, employees agree to updated terms following consultation and a transparent explanation of why you’re making changes. But what if they refuse?

• Negotiate: Open up a dialogue to address concerns, clarify misunderstandings, and see if a compromise is possible.
• Consider “business as usual”: If the change is minor, and the employee continues to work under the new terms without objection, their continued employment may be treated as implied acceptance.
• Impose changes with notice (as a last resort): As a final measure, you can give notice terminating the old contract and offer re-employment on new terms. This is legally risky and could expose you to unfair dismissal or breach of contract claims-always seek legal advice before taking this step.

Remember, the safest (and most amicable) route is through mutual agreement.

How Do I Make Sure My New Contracts Are Legally Compliant?

Legal compliance means more than updating for changes in the law - it also means ensuring your contracts are clear, fair, and enforceable. Here are some pointers:

• Reflect statutory minimums: Contracts can offer more generous terms than the law requires, but never less. This includes statutory notice, minimum wage, holiday pay, and parental leave.
• Use plain language: Contracts should be understandable by all parties-not littered with jargon or hidden clauses.
• Avoid blanket or outdated provisions: For example, blanket non-competes are likely to be struck out if they’re too broad or not justifiable by the nature of the employee’s role.
• Update for new laws: Stay on top of recent changes, such as those affecting redundancy, family leave, discrimination, or remote working.
• Consider administrative efficiency: Standardising contract templates (with appropriate variations for different employee groups) will save future headaches and reduce disputes.

To ensure you’re protected from day one, have your templates reviewed by a professional and update them regularly - especially after any legal or business changes. Need a deeper dive on what to include? Check out our article on the importance of employment contracts.

Key Takeaways

• Employment contracts should be updated when business needs, roles, or the law changes - not just in response to disputes.
• Systematic, regular contract reviews (at least annually) help keep your business compliant and protected.
• There is no universal “90 days’ notice to change contract” requirement; check individual contracts and act reasonably based on the scale of change.
• Major contract changes require employee consultation and agreement-never try to impose changes unilaterally unless as a very last resort.
• Use the update process to strengthen business protections (IP, confidentiality, non-compete, compliance with new laws).
• Ensure all new or updated contracts are clear, fair, and properly documented. Don’t rely on templates; get tailored legal advice.

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If you’re considering a contract update or need tailored legal advice on employment law, get in touch with Sprintlaw’s friendly team. You can reach us at 08081347754 or team@sprintlaw.co.uk for a free, no-obligations chat.