Contracts of Employment

The legal requirements of Contracts of Employment

The law requires all employees to be given certain minimum particulars of their employment within 2 months of employment starting. These particulars don’t need to be in the form of a written contract of employment but it is best that they are. If the particulars are not given then in certain circumstances the employee affected can claim compensation so it’s important to get this requirement right.

The best practice is to draft the contract of employment before the offer of employment is made and then to make the offer on the basis that the employee signs the contract. The offer should also be subject to other conditions such as the obtaining of satisfactory references.

The practical benefits

Having a contract of employment carries many benefits for both employer and employee – quite apart from the legal requirements. First and foremost, it’s important for both parties to know where they stand so as to avoid disputes on matters such as job titles, hours of work, sick pay etc.

From the employer’s point of view it’s important that all necessary obligations and, where appropriate, restrictions (on future working for example) are included at as early a stage as possible. A well-drawn contract of employment can give an employer all the required protection as well as ensuring that suitable incentives are provided to ensure maximum performance by employees without imposing onerous legal obligations on the employer. Flexibility in the drafting is also key so as to ensure that your contract will be able to meet the changing business demands.

We have substantial experience in this area and can advise you on the form of contract which is appropriate to your business and prepare it for you.