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Question:

Do Employers have to be provide contracts of employment, and if so what has to go in them?               

 

 

Answer:

The short answer is that yes, the Employer 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.

 

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.

 

In addition, the employer must specify or refer the employee to the employers disciplinary and grievance procedure.

 

There are of course a number of other clauses that the employer would probably also want to cover in the employment contract including:

Probationary period

Flexibility of working

Whether a driving licence is required

Whether the employee is required to opt out of the maximum working week under the Working Time Regulations

Whether the employee has to work additional hours, and if so if overtime is paid

Whether the employee is entitled to pay reviews.

Whether the employee is entitled to bonuses or commission

The procedure for taking holiday

What the rate of sick pay is (statutory sick pay or contractual) and if so how long it is paid for.

Retirement age

Dress code

Confidentiality

Whether other work is allowed

Ownership of intellectual property

Whether the employer can put the employee on ‘garden leave’ or make a payment in lieu of notice

Payment of expenses

Whether smoking at work is permitted.

Whether there are any restrictions on the employee after s/he leaves (for example to stop the employee from poaching clients after s/he leaves)

 

As with so many things, an employment contract is probably only going to be looked at closely when the employment relationship starts to go wrong. However a good employment contract should ideally be a user-friendly document which helps both parties understand the rights and duties of each and promote a more harmonious working relationship.

 

See also our page on changes to employment contracts. 

See also our page dealing with employment contracts at http://www.reculversolicitors.co.uk/employment_contract.htm to download a free employment contract template compliant with UK law.

Last reviewed:   July 2010

 

 

 

 

James Carmody

Employment Solicitor

 

Reculver Solicitors

12-16 Clerkenwell Road

London EC1M 5PQ

 

www.reculversolicitors.co.uk

info@reculversolicitors.co.uk

Tel 0207 324 6271

 

Regulated by the Solicitors Regulation Authority

 

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