Do we need to provide a written contract of employment?

All employees have a contract of employment. Verbal contracts have the same legal status as a written contract but are more difficult to prove. The terms of the contract can be express or implied and can be provided by statute.

An express term is something that is usually in writing but can also be verbally agreed. This is something such as the hourly or weekly rate of pay. An implied term is something that is not in the contract that is written or verbally agreed but still exists. For example, it may be an implied term of the contract that the employer provides the employee with free tea, coffee and biscuits. Another implied term is that of mutual trust and confidence. This means that the parties will act reasonably towards one another.

When should a contract of employment be issued?
It is always safer to issue written particulars of employment. In doing so there is certainty as to what has been agreed and what each party can expect of the other. An employee is entitled to receive a written statement of their particulars of employment within two months of commencement of employment.

What should this contain?

• the name and address of each party
• the date of employment commencing and details of continuous employment
• rate and frequency of pay
• hours of work
• holidays
• sick pay
• pensions
• job title or description
• place of work and mobility clause
• length of notice required
• if fixed term contract date employment will cease 
• details of any collective agreement
• details of work outside UK
• disciplinary and grievance issues

What else can the contract contain?

The contract can contain any other issues that the parties agree and view as being right to include in the contract. The employer may wish to include a policy on equal opportunities, what it views as gross misconduct or indeed policies designed to protect the company upon termination such as restrictive covenants. These can prevent staff being solicited and customers being approached and poached by a disgruntled employee. It is also possible to prevent an employee from working within a certain geographical area.

What are the minimum implied terms of employment?

Mutual trust and confidence is key. Any employee and employer must act fairly towards one another. The parties must act in good faith and the parties cannot act unreasonably. The employee will be expected not to disclose trade secrets, take care of equipment and obey reasonable orders.   

Summary

• Whilst a contract of employment should always be in writing it can be as brief or as thorough as is required by the particular role.
• Always provide the contract within the relevant time allowed.
• Review the contract so as to comply with legislation changes. 
• Review the contract if the role changes significantly.
• Take great care when trying to vary the terms of the contract if the employee is not in agreement. 

This article is intended to provide our thoughts on contracts of employment. It is not meant to be specific advice on any particular employment matter. If in doubt always seek legal advice. We are experienced in drafting contracts of employment and can be contacted on 01582 439795.