A pay rise is a variation to the employment contract. While it can be agreed verbally, a written agreement is best practice and provides clarity for both parties. It should reference the original employment contract and state clearly whether any other terms are changing.

• A pay rise is a contractual variation — both parties must agree
• Unilateral pay reduction: employer cannot reduce pay without agreement
• National Minimum Wage: all employees must receive at least NMW — rises annually in April
• Equal pay: pay rises must not be discriminatory (Equality Act 2010)
• Pension auto-enrolment: increased salary may affect pension contributions

Legal reference: Employment Rights Act 1996 s.1 (written statement of particulars); Equality Act 2010 s.64 (equal pay); NMW Act 1998