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As an employer, you must give your staff a ‘written statement of main terms’ from the first day they start work for you.
If you fail to give your employees this information, they could raise a grievance against you and even take you to an employment tribunal. So don’t risk costly claims that not only will cost you money, but also take up your time and energy.
Providing employees with a contract of employment is both a legal obligation as well as having practical benefits.
From an employment law perspective, it is unlawful to employ a person without having some form of a contract in place.
From a practical point of view, contracts of employment outline what you expect from your employees, whilst also clarifying the obligations you have to meet (as the employer). They’ll help you run your business more smoothly, and create clarity for your employees.
And, if HR issues or difficulties with the employment relationship crop up, you’ll always have your contract to fall back on – providing it is a quality document that has been well drafted, that is.
A Contract of Employment is made up of ‘terms’. Some of these are ‘express terms’. Others are ‘implied terms’.
‘Express terms’ are those which relate to statutory requirements and employment law. They are written directly in the contract. They include areas such as:
‘Implied terms’ are those that aren’t written down in the contract, but implied by other terms of the contract or the law. They are presumed to be agreed to if the employee enters into the contract. Examples of implied terms include
It is critically important to remember that an Employment Contract needs to be compliant with UK law. Because of the serious legal risks, it is highly inadvisable to attempt to create a contract yourself. It’s simply not worth the risk.
Giving employees or workers ‘bad’ contracts is just as risky as staffing your business with no contracts of employment at all.
A Contract of Employment (Employment Contract) is legally binding, but only if it has been drafted correctly. So, whilst writing a contract yourself, or downloading a Contract of Employment template from the internet might be tempting, it won’t necessarily work for your small business or provide you with the right legal protection.
It’s also important to note that template contracts can be out of date and not reflect the most recent legislative changes or case law.
We can put together all your Contracts of Employment (Employment Contracts) so you can be confident they aren’t only legally compliant and protect your business from risk, but are also written just for you – to match and fit your business or organisation and its unique needs.
Unlock the full potential of your HR with Dekela. Our tailored solutions can streamline your processes, enhance employee engagement, and drive organizational growth.
Issuing a written contract of employment to an employee may seem like tedious paperwork and an unnecessary piece of admin that’s just not worth the time.
That is, until the full extent of their importance becomes clear to you when something goes wrong later on in the employment relationship.
You may feel that a verbal agreement with an employee saves time. However, it can also cause all sorts of problems for you should problems arise later in the employment. An apparently trivial misunderstanding can quickly escalate into a full-blown tribunal. Tribunals invariably are very costly for employers – even if you win!
But don’t take our word for it… between April – June 2023, the employment tribunals dealt with 1,422 claims made by employees against employers who failed to provide them with a written statement of their main terms of employment.
Therefore, it is wise to prepare a well-drafted, legally compliant contract of employment prior to an employee’s start date to reduce any misunderstanding before they begin work.
Here’s some of the most common questions we get asked about our Contracts of Employment (Employment Contracts) services
A contract of employment is a legally binding agreement between an employer and an employee outlining the terms of employment. It is essential as it defines the working relationship, helps prevent misunderstandings, and protects both parties’ rights.
Yes, employers in the UK are legally required to provide employees with a written statement of employment particulars by the end of the employee’s first day of work. Having a full contract is advisable to ensure clarity and prevent future disputes.
A typical employment contract should cover job title, duties, start date, salary, working hours, holiday entitlement, notice periods, and disciplinary procedures. It may also include confidentiality clauses, non-compete clauses, and benefits details.
Yes, but changes must be mutually agreed upon by both employer and employee. It’s recommended to document any changes in writing to avoid disputes and ensure all parties are aware of the updated terms.
Yes, a probation period is common and allows you to evaluate a new hire’s suitability for the role. During this period, the notice period may be shorter, and termination is typically more straightforward if the fit isn’t right.
If an employee breaches their contract, you can address the issue according to your disciplinary procedure. In serious cases, the breach may be grounds for termination or legal action, depending on the situation and terms in the contract.
Contracts should be reviewed regularly to ensure they align with current employment laws and reflect any significant changes in an employee’s role or responsibilities.
While an employee may start working without a formal contract, it’s essential to provide them with a written statement of employment particulars by their first day. Operating without a proper contract can lead to misunderstandings and legal risks.
Our HR retainer service offers expert support to ensure your employment contracts are compliant, clearly outline roles and expectations, and protect your business. We provide guidance on drafting, updating, and reviewing contracts as needed.
ACAS (Advisory, Conciliation and Arbitration Service): Offers guidance on employment law, workplace disputes, and employee relations.
Federation of Small Businesses (FSB): A support network for small businesses, offering advice and resources on HR, legal, and financial matters.
