How frequently should employment contracts be updated?
A client mentioned whilst discussing another matter, that he’d worked at the same company for 18 years, and had the same contract.
Is that normal? Acceptable? Legal? It prompts the question:
How frequently should employment contracts be updated?
An employment contract is a legally-binding agreement between an employer and an employee that outlines the terms and conditions of employment. These contracts typically include details such as job responsibilities, salary, benefits and termination procedures.
On commencement of a role, an employment contract will be up-to-date. As time goes by, changes made by government as well as changes to the employee’s role and the company’s size and structure, may require the contract to be updated.
Examples of when employers might need to up-date the employment contract:
- to ensure contracts comply with new laws or regulations
- to better reflect someone’s job role as it evolves or as the employee achieves promotion
- to change terms and conditions, e.g. enhanced maternity leave or pension contributions
- to reflect changes to a company, e.g. if it moves office location
- to take into account company structural changes
- if employment contracts become significantly different to staff handbooks.
How can an employer keep up-to-date with minor changes to the employment contract?
Minor changes to an employees’ employment can be incorporated into a simple written statement.
For example, for a salary change, a letter or email to the employee stating the new salary and the start date for this change is all that is necessary. This letter then forms part of their existing contract. This is called an addendum to the contract.
Other minor changes need not be included, e.g. if an employee moves house, their address does not need to be updated.
However, in this example, if an employee starts to work at home, through hybrid working or full-time working from home, their contract should be amended.
Would a 18-year old contract be legal?
If an employee’s role hasn’t changed, if the company hasn’t changed, if salary increases have been communicated in writing, then much of the employee’s contract could remain valid. However, changed and improved employment laws will, potentially make some clauses obsolete or out-dated.
As an employer, you should review employment contracts annually or bi-annually to ensure they are still valid, and update where required. Employers and employees need to agree to contract changes.
If you need more information on employment law, or any aspect of commercial and company law, please contact Umberto Vietri on 01274 352056 or email umberto.vietri@awbclaw.co.uk.
9 June 2026
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