subject: UK Law: Why should employers have employment contracts? [print this page] UK Law: Why should employers have employment contracts?
Under the laws of England and Wales, Employers must give each new employee a written statement of particulars of employment' no later than two months from the beginning of employment. This could be in an offer letter or series of letters, and does not necessarily have to be in a formal employment contract. However generally it is a good idea to have all contractual terms in one employment contract.
According to section 1 of the Employment Rights Act 1996 the following should go in those written particulars:
The names of the employer and employee
The date when the employment began, and
The date on which the employee's period of continuous employment' began (taking into account any employment with a previous employer which counts towards that period).
The pay or the method of calculating remuneration,
The intervals at which remuneration is paid (that is, weekly, monthly or other specified intervals),
Hours of work (including any terms and conditions relating to normal working hours),
Entitlement to holidays, including public holidays, and holiday pay.
Entitlement to sick pay
Entitlement to pension if applicable. (Remember all employers with five or more staff should be offering staff a stake holder pension scheme),
the length of notice which the employee is obliged to give and entitled to receive to terminate his contract of employment,
the title of the job which the employee is employed to do or a brief description of the work for which he is employed,
If the employment is not intended to be permanent, the period for which it is expected to continue or, if it is for a fixed term, the date when it is to end,
either the place of work or, where the employee is required or permitted to work at various places, an indication of that and of the address of the employer,
any collective agreements which directly affect the terms and conditions of the employment
where the employee is required to work outside the United Kingdom for a period of more than one month (i) the period for which he is to work outside the United Kingdom, (ii) the currency in which remuneration is to be paid while he is working outside the United Kingdom, (iii) any additional remuneration payable to him, and any benefits to be provided to or in respect of him, by reason of his being required to work outside the United Kingdom, and (iv) any terms and conditions relating to his return to the United Kingdom.
It is extremely important to have an effective employment contract in place both to be legally compliant and to protect your organisation. Well drafted employment contracts should deal with issues including:
- What happens if the employees references are not adequate.
- Ensuring that the employee will work additional hours if required.
- Ensuring flexibility in the work carried out, and where it is carried out.
- Opting out of the maximum 48 hour working week.
- Whether bonuses are discretionary or contractual.
- What deductions can be made from pay and when.
- Holiday and bank holidays (especially for part-timers), when holiday can be taken and whether it can be carried over or not.
- Whether or not any sick pay over and above SSP is contractual or discretionary.
- The right to require the employee to be seen by a doctor.
- When time off for dental and other appointments should be taken.
- Security, dress and appearance, employers property.
- Protection of Confidentiality and Intellectual Property.
- Notice periods.
- Whether you reserve the right to give a payment in lieu of notice on termination, and/or put staff on 'garden leave'
- Dealing with Misconduct and Grievances
- Effective restrictions preventing your staff from poaching clients or colleagues after they leave.
Employers are also well advised to have a set of non-contractual policies and procedures dealing with matters such as : Disciplinary Email and IT Equal Opportunities Fire Flexible Working Grievance Health and Safety Maternity Parental Leave Performance Personal Data Sickness Absence Smoking etc Time Off For Dependants Vehicle Use. These can be incorporated into a Staff Handbook if you wish.
