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FREE PDF TEMPLATE Last updated 29 August 2026

Contract variation letter for Australian employers

Records an agreed change to someone's employment terms. The key word is agreed — most variations need the employee's consent, which is why this is a letter they sign rather than a notice you issue.

Contract variation letter

PDF · 2 pages · no signup

Employee signature block for consent
Covers hours, pay, position and location
Prompts to check the award minimum
States what is not changing

General information only, not legal advice.

This template is general information for Australian employers, not legal advice. Obligations depend on the applicable modern award or agreement, the employment contract and the circumstances — confirm anything you are unsure of with Fair Work or a workplace relations adviser. It does not constitute legal, HR, or professional advice and should not be relied on as a substitute for advice specific to your business, workforce, or circumstances.

References HR Hub disclaimer Modern Awards Fair Work

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What's in the template

Everything the letter needs, plus the guidance that keeps it compliant.

What is changing

Separate fields for position, hours, pay and location — complete only the ones that apply.

Effective date

When the change takes effect, so there is no ambiguity about which terms applied when.

What stays the same

An explicit statement that all other terms are unchanged, which prevents argument later.

Employee agreement

A signature block, because a variation generally requires consent rather than notification.

Award check prompt

A reminder to confirm the varied terms still meet the award minimum for the classification.

Record keeping

Keep the signed copy on file for seven years.

Variation requires agreement, not notification

This is the distinction that causes most disputes about changed terms.

Consent is the default

Most changes to employment terms require the employee's agreement. Issuing a notice announcing a change is not the same as varying the contract.

Check the award floor

A reduction in hours or a change of employment type can take pay below the award minimum for the classification. Check before, not after.

Full-time or part-time to casual

This is a significant change with real consequences for entitlements, and it needs care. Casual conversion rules run in the other direction.

Write down what is unchanged

A variation letter that only lists changes leaves everything else open to argument. State that other terms continue.

A reasonable business direction is not a contract variation

Some changes sit within what the contract already allows — moving someone between sites where the contract contemplates it, or adjusting a roster within the agreed pattern. Those are directions, not variations, provided they are lawful and reasonable.\n\nChanging the terms themselves — hours, pay, position, employment type — is a variation and needs agreement. If you are unsure which one you are doing, treat it as a variation.

How to use it

Four steps.

1. Confirm the change

Discuss it with the employee and reach agreement before writing anything.

2. Check the award

Confirm the varied terms still meet the classification minimum.

3. Complete the letter

Only the fields that are changing, plus the effective date.

4. Both parties sign

Keep the signed copy on the employee file.

Who uses it

Employers changing terms

Any agreed change to hours, pay, position, type or location.

Businesses adjusting hours

Where a roster change is permanent enough to be a change of terms.

Flexible work arrangements

Where an approved flexible request changes the ongoing terms.
For accountants & bookkeepers

Do clients ask you to change staff hours or pay?

A variation that drops below the award minimum is an underpayment from the effective date. Advisors who bring shift-based clients onto RosterElf get award rates checked automatically, and earn recurring monthly income per employee managed.

Recurring monthly income

$1.00–$2.00 per active employee

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$100 per new client business

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FAQ

Contract variation questions

  • Generally yes. Most changes to employment terms require agreement rather than notification, which is why a variation letter carries a signature block.\n\nSome changes sit within what the contract already permits — those are directions rather than variations.

  • A direction operates within the existing terms — moving between sites where the contract contemplates it, or adjusting a roster within the agreed pattern. A variation changes the terms themselves.\n\nIf you are unsure which you are doing, treat it as a variation and seek agreement.

  • Only by agreement, unless the contract expressly allows it. Check that the reduced arrangement still meets the award minimum for the classification, including any part-time minimum engagement requirements.