Employment contracts
In the second of our ‘Legal Eagle’ columns Rob Andrews looks at the subject of contracts and what to do when you employ someone
I regularly hear many of my clients say, “It’s hard in this day and age to keep up with employment law and regulations. There seems so much to take on board.” And I have to agree with them. UK law is being swamped by the ever-increasing European driven employment legislation, mainly focussed on employee rights, human rights and equality. But there are some basics which have been “set in stone” for some years now, and employers are still not quite getting it right. In this note, we’ll focus on the legal basis of the employee/employer relationship, the employment contract. So what do you, as an employer, need to do?
The employment contract Firstly, there is no legal obligation to provide
an employee with a formal contract document. However you do need to provide a written statement of the main particulars of employment. This must be given to the employee within 2 months of the start of employment. In most cases a contract and a written statement
will be the same. Contracts can be formed verbally or by conduct, and so the written statement would confirm what has been “agreed” by the words spoken or conduct used. I tend to advise clients to issue a formal contract of employment before the employee starts work. It could be sent out with an offer letter and separate job description, and if these documents are issued, then the obligation to provide written particulars is met. A contract of employment will set out clearly
your and your employees’ obligations and responsibilities. It need not be complicated but should include the following information: • The legal name of the employer – whether a sole trader, limited company or partnership, and the address of the place of work.
• The name of the employee. • The date employment started. • Details of pay or how it is to be calculated, whether payment is to be weekly/monthly and entitlement to any benefits
• Place and hours of work • Job Description. This should confirm the title of the job, set authority limits (what they can do financially on behalf of their employer), who the role reports to and for whom it is responsible and areas of their work activity. If there are later grievance and disciplinary issues the job description is often a benchmark of what is expected of the employee.
• Entitlement to holiday and holiday pay. Full time employees are entitled to at least 28 days including statutory holidays; part time generally will be calculated pro rata.
• Sickness procedures and Sick Pay. Whether the employer has any extra sick pay policy over
LEGAL EAGLE EQUIPPING
www.christianmarketplace.org.uk October 2010 19 statutory requirements.
• Where the contract is temporary or for a fixed term only, the time period of employment should be recorded and an end date specified.
• Notice periods to set out how each party can terminate the employment. There are statutory minimum notice periods but it is usual and more practical for the time periods to be specified.
• Pension provisions if any are applicable. • Dismissal,
disciplinary and grievance
procedures. These must include the name or title of the individual an employee should contact to resolve a dispute or grievance and how they should make an application; and how they can apply and to whom if they are unhappy with the decision made. You should also set out any disciplinary rules and procedures and the steps which can be taken to resolve matters if an employee is dissatisfied with a decision.
• What happens on termination – the return of the employer’s property and any reasonable restrictions on the employee to work for competitors in the future.
Help with drafting contracts There is a wealth of good advice and standard
documents on the internet, including the ACAS’s site, or your local Business Link. The government’s portal at
www.direct.gov.uk also provides good information. Documents can be purchased from many commercial sites, but do beware “doing it yourself”. If you get a foundational document wrong, or don’t complete it correctly, it could cause you problems in the future. HR and employment support agencies can provide advice and assistance, often on a monthly retainer. Specialist employment solicitors will assist too. Don’t be afraid of getting advice. It may cost
a little now, but could save thousands avoiding tribunal claims in the future. Finally, trustees of charities need to be aware of their potential liability for employee claims so get advice and make sure the right documents are in place to ensure your charity is meeting its legal requirements.
Disclaimer - This note is a general summary of some legal issues relating to its subject matter. No reliance should be placed on the content of this note without taking specific advice on the individual circumstances applicable to the reader’s position. For a longer version of this article go to
www.christianmarketplace.org.uk
Rob Andrews is a solicitor and Director of AndrewsLaw Solicitors (
www.andrewslaw.
co.uk). His practice advises Christian businesses, ministries and charities, and is a member of the Association of Christian Law Firms. Rob is a member of the Lawyers Christian Fellowship, and works with the Christian Legal Centre on faith based cases and advice. He is married to Meg and is blessed with two lovely and lively young girls.
by Rob Andrews
“You do need to provide a written statement of the main particulars of employment.”
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