An employment agreement addendum is a simple one (1) page form used for adding additional information to an employment contract. The name “addendum” stems directly from the latin term “addere”, which translates to “to add”.
The form can be used for both expanding existing clauses as well as adding new sections altogether, while leaving the contract in its original state. It can be attached before the parties sign the contract or at a later point in time. To be valid, it will need to be signed and dated by both the employer and the employee.
An addendum should be used whenever a party wishes to clarify a section within an agreement. When drafting the addendum, the following should be implemented:
- Match the addendum’s font size and style to that of the original contract.
- Include the names of all parties included in the employment contract.
- Include the effective date of the employment contract.
- Add the date the addendum will take effect.
- Clearly break down all additions being made to the contract. If the additions are to specific clauses, the name original clause name be mentioned. For example:
- “EMPLOYEE BENEFITS. In addition to the benefits established on Page 1 of the original agreement, the Employee shall be eligible to receive Health Insurance and up to twenty (20) paid days off in a given calendar year.”
- Include a clause that points to the parties unanimous agreement to the changes outlined in the form.
- Provide space for the employer and employee’s signature, printed name, and titles.
- An addendum is for expanding upon information in a contract. It does not reverse or modify anything already included in the original agreement.
- An amendment alters one (1) or more existing clauses in an active employment contract.