Contracts can be written or verbal but either way the “terms” must be understood by the employer and the employee.

A written contract is by far the best option.  Contracts should contain the employment conditions, rights, responsibilities and duties of both the employer and the employee.

What information should a basic contract of employment contain?

When writing a contract of employment for your employee we would suggest that the following bullet points are included;

  • The full names of both the employee and the employer.
  • The employer’s address and the addresses of all the places the employee is required to work in the UK or overseas.
  • Notification to the employee if previous employment counts as part of their period of continuous employment and if so the date.
  • The employee’s job title, a description of their job, the rates and frequency of pay, holiday and statutory entitlements, particulars of any pension schemes, time scales of notice for statutory payments.
  • State if the job is permanent or temporary, disciplinary procedures, grievance procedures and terms and conditions for terminating the contract.

Contracts of employment are legally binding documents and need to be accurate.

The employer and employee must adhere to the contents of a contract until it ends.  The legal parts of a contract are call ‘terms’ employers must inform the employee which parts are legally binding.

Why have a contract of employment?

A part from the obvious reason employment contracts are required by Employment Law.  A contract sets the employer and the employee off on the right foot.

The employee will know exactly what to expect from the employer and what the employer expects from the employee.

A contract can help to stop issues during employment that may otherwise end up at a tribunal.

Employment Law is a complicated subject and not one to be taken lightly.  ACAS offer free and impartial advice to employers facing difficulties with employees.