INSIDER AUGUST 2018

There are certain things which an employment contract must contain, including:

One of the most important things to consider when putting together contracts is ensuring that they are as reader friendly as possible, avoiding any legal jargon that may confuse or worry employees. Employees should be allowed time to go through any contract offered to ensure that they understand and agree to the terms contained within; remember that a contract is an agreement between two parties rather than a one-sided order, so you should give employees the opportunity to raise any concerns or queries they might have about the terms contained within it. Many employers often believe that a contract of employment must be signed and returned to them, however, there is no legal requirement for this to happen. So long as the employee has been issued with their contract and continues to work under its terms without raising any concerns, then it can be reasonably implied that the employee has agreed to the terms contained within the contract. Due to the ever-changing nature of employment law, employers must ensure that they have access to regular legislative updates as contracts will need be kept up to date, regardless of how long an employee has been with the company.

Names of both employer and employee Dates on which employment and the period of

continuous employment began Scale and rate of remuneration

Intervals at which remuneration is paid Any terms relating to hours of work Terms relating to annual leave entitlement and incapacity for work due to sickness or injury, including provisions for sick pay Pensions Notice of termination obligations from both employer and employee Job title Period of employment, if not permanent, and the date on which it will end Place of work Information as to whether or not there are any collective agreements applicable to the  So long as all the above have been included in the contract of employment, then employers will have met their statutory obligations, however, there is additional information which could also come up. Company sick pay, bonus or commission schemes and enhanced annual leave entitlement can also be considered when drawing up a contract of employment but it’s important to note that if they are included then they become a contractual right, so employers need to consider whether they are able to sustain the terms before putting them down in writing. If you prefer to have more control over which benefits are provided and when, then it’s best to ensure that the wording in the clause(s) detailing the terms makes them a discretionary or conditional entitlement, dependent on the employee meeting certain factors or criteria.

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