Contracts of Employment
There’s often confusion about whether a contract of employment is needed in writing. Whilst there is no obligation on employers to put contracts in writing, certain key employment terms must be set out in a written statement of employment particulars on or before the employee’s start date. As such, it makes sense to bring the two together. Oral and/or ambiguous terms have the potential to lead to disputes.
An employment contract is a legal agreement between you and your employee regarding their employment. It sets out your employee’s rights and duties in the workplace, as well as your corresponding obligations as an employer. An employment contract begins as soon as new employees or workers accept the job you offer them.
Terms may also be implied into the contract. Often this will be by custom or practice, or the parties’ conduct, or because of what a tribunal deems must have been intended when the two parties entered into the contract.
Things to consider:
- What type of contract is required? There are several different types of employment contracts to choose from. It all depends on what job is being offered and what is expected for the role. You can offer:
- Have you given your employee or worker a written statement of particulars? These can be included as part of the contract of employment or a letter of engagement, but need to include:
- Your name and address and your employee or worker’s name
- The job title, description and start date, and, if the employee is already employed by you, the date of their previous job
- The rate of pay
- Days and hours of work, including any variance and requirements to work Sundays, nights or overtime
- Place(s) of work, including any potential for relocation
- The duration of their job with you, including any specific end date
- Any probationary period length and conditions
- Any mandatory training, including details of who pays for this
- Other benefits such as, for example, lunch vouchers
- If your employee or worker will be working outside of the UK for at least one month, you must include their length of time out of the UK and any currency they are paid in. You must also include any further benefits or pay relating to the time out of the UK and terms about them returning to the UK.
- Have you given the wider written statement to your employee or worker within two months of starting their employment with you. This must include:
- Pension and pension scheme information.
- Non-mandatory training which you provide.
- Disciplinary and grievance procedures.
- Collective agreements, which are agreements you may have with your employee’s representatives that let you negotiate any terms and conditions of their employment with you.
- ACAS guidelines in relation to holiday entitlement also specifically outlines that contracts of employment should include an explanation of how the entitlement is calculated if the employee leaves the organisation.
- Are you are considering making changes to the written statement during your employee’s employment with you? If so, you should consult with them over the change.
- Have you ensured that any documents that are referred to in the employment contract, such as disciplinary and grievance procedures, are readily accessible?
If you need HR help and support then get in touch.
Free Advice
Examples of help we can give:
- Provide standard and bespoke written statements and contracts of employment.
- Provide standard and bespoke offer letters.
- Review current written statements and contracts of employment ensuring they are legally compliant.
- Audit your onboarding process and provide an associated action plan.
- Undertake all the HR administration related to new starters, including issuing written statements, contracts and offer letters.
