CONTRACTS OF EMPLOYMENT

CONTRACTS OF EMPLOYMENT

Further resources:

FAQ – Contracts of employment

Contracts and offers of employment documents

Employers guide to contracts of employment

Employers guide to changing contractual terms

Whether or not formal terms are written down (the employment contract) the law implies certain terms of employment. These may not be the terms the employer wanted and so a formal written contract is strongly advised, and in any case written terms must be supplied by law after 2 months of employment. Failing to do so could result in a 2-4 weeks award at employment tribunal, and an award would be a racing certainty if the employee ever had cause to take their employer to a tribunal in the future.

Normally directors and senior managers will have reasonably detailed written contracts of employment, less senior staff will have more straight forward contracts. Directors' contracts of employment are often referred to as Service Agreements.

We offer off the shelf contracts of employment that are customisable to a degree. However, we find in practice that most contracts need to be specific to the needs of each individual business. Part of our service to our subscribing clients is to look at their precise requirements and draft a contract specifically for them. Larger clients often need a few versions to reflect levels of seniority or job function. Once drafted, an annual review will ensure that contracts are kept up to date.

Typical employment law pitfalls

2 -4 weeks pay for failing to provide written terms after 2 months of employment. Lack of written terms result in tribunals implying terms, often with costly consequences. Lack of written terms also:

  • hinder employer’s ability to manage employees
  • limit employer flexibility
  • increase the risk of dispute over contractual issues

Help and support

All of our clients upon commencing their subscription will be offered a) an inspection of their existing contracts of employment and/or b) new bespoke contracts of employment drafted by us. We aim to do this within 30 days of the subscription commencing. All new employees taken on by our clients must be issued contracts of employment recommended by us in order to qualify for the Employment Tribunal Protection Guarantee (subject to tariff).

Our 2 minute guides are designed to map out HR processes simply, providing links to the documents you are likely to need. If in doubt please contact us for assistance. Subscribing to myhrdept.co.uk is easy, with packages available that include employment tribunal protection & losses ….simply click here for subscription options or contact us to discuss your requirements.