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Why do you need Contracts of Employment?

In all businesses the golden rule when it comes to employees, is that they need to feel they are all treated fairly and consistently. The best way to achieve consistent Terms & Conditions is to produce contracts of employment for all employees; ensuring both the employer and the employee are clear on the foundations of the employment agreement.

Remember, in the absence of a written contract, the statutory rules will apply. Do you really want to follow the full ACAS Code of Practice in managing an issue for someone who has only worked for six months?

So what is a Contract of Employment?

  • A contract of employment is an agreement between an employer and employee and is the basis of the employment relationship.
  • Most employment contracts do not need to be in writing to be legally valid, but it is better if they are.
  • A contract ‘starts’ as soon as an offer of employment is accepted.
  • Most employees are legally entitled to a Written Statement of the main terms and conditions of employment within two calendar months of starting work. This should include details of things like pay, holidays and working hours.
  • An existing contract of employment can be varied only with the agreement of both parties.

And what should you include?

  • The practicalities – commencement date, job title and role, remuneration, benefits and pension & hours
  • Place of work – do you need a mobility clause?
  • Notice to change terms and the status of supporting documentation
  • Probation
  • Standards – Other work, DBS, Key rules (e.g. Use of IT, emails and Social Media)
  • Company equipment / property
  • Holidays – entitlements and rules
  • Sickness – pay and notification rules
  • Notice of termination – any provision for PILON and summary dismissal
  • Disciplinary & grievance procedures including Appeals – how to reference these
  • Salary deductions – your right to and their agreement to these!
  • Restrictive Covenants e.g. confidentiality
  • Data Protection – what this includes and consent
  • Evidencing their agreement to the terms and conditions

The production of Employee Contracts of Employment is part of the HR Fundamentals that SYLO Associates offers for our clients. We have extensive experience in all types of contracts, including those people working with you who are not employees. i.e. self-employed or contractors.

Do your current Contracts of Employment include the latest information on Family Friendly Policies, GDPR etc?

If you require assistance with this or any other HR advice, please contact us on 01844 216290 or email.