What are employment contracts?
An employment contract is a legally binding employment agreement, setting out the rights, responsibilities, duties and obligations of an employer and employee.
As an employer, it is best to ensure the contract is set out in writing so the terms and conditions of employment and what is expected of the working relationship is very clear. This protects both the interests of your business and that of your employees.
Types of employment contracts
There are a number of different employment contracts which you can offer employees depending on how the business operates and/or the type of role that is required. These are:
- Full time contract
- Part time contract
- Fixed term contract
- Agency worker contract
- Freelance, consultant, contractor or self-employed contract
- Zero hours contract
- Apprenticeship contract
Which contract should be used will depend on the nature of the role.
What you need to include in an employment contract for your employees
The purpose of the contract is to outline the terms and conditions of employment. The main elements which should be included are as follows:
- Job title and description
- Date of continuous employment
- Salary and benefits
- Hours and place of work
- Probationary period (if applicable)
- Pension scheme
- Holiday entitlement
- Termination and notice periods
- Employee confidentiality and restrictive covenants
Terms you’ll need to include in other documents
There is some information that employees need to be aware of but that would be best placed elsewhere; for example, in the employee handbook.
The purpose of the contract is to cover critical information that the parties may look to contractually enforce during and after employment.
The aim of the handbook is to set out the employer’s policies, procedures and rules. This would include details of sickness absence and sick pay, maternity/paternity/shared parental/adoption and dependants’ leave, flexible working policies, grievance and disciplinary procedures.
Details of an employer’s pension scheme are also likely to be found in its own separate document.
Can employees have their contracts reviewed?
Yes, employees can have their contracts reviewed, for example if there is any wording or clauses that they do not understand or if they have concerns about anything within the contract.
Employment contract disputes, termination and changes to contract
If an employee is leaving your employment and you require clarification on any post-termination restrictions contained within their contract and how enforceable they will be, we can review the contract and provide advice.
If you are looking to change the terms of your employment contracts, we can provide advice on whether those changes can be made and the practicalities of enforcing those changes.
Unless the contract specifically allows changes to be made, you must agree to a proposed change with the affected employee (or all employees if it is a change across the board). Failure to do so may result in a claim for breach of contract being brought against the company, so it is worth getting legal advice if you are unsure on any changes you may want to potentially bring in.
What are employment contracts?
An employment contract is a legally binding employment agreement, setting out the rights, responsibilities, duties and obligations of an employer and employee.
As an employer, it is best to ensure the contract is set out in writing so the terms and conditions of employment and what is expected of the working relationship is very clear. This protects both the interests of your business and that of your employees.
Types of employment contracts
There are a number of different employment contracts which you can offer employees depending on how the business operates and/or the type of role that is required. These are:
- Full time contract
- Part time contract
- Fixed term contract
- Agency worker contract
- Freelance, consultant, contractor or self-employed contract
- Zero hours contract
- Apprenticeship contract
Which contract should be used will depend on the nature of the role.
What you need to include in an employment contract for your employees
The purpose of the contract is to outline the terms and conditions of employment. The main elements which should be included are as follows:
- Job title and description
- Date of continuous employment
- Salary and benefits
- Hours and place of work
- Probationary period (if applicable)
- Pension scheme
- Holiday entitlement
- Termination and notice periods
- Employee confidentiality and restrictive covenants
Terms you’ll need to include in other documents
There is some information that employees need to be aware of but that would be best placed elsewhere; for example, in the employee handbook.
The purpose of the contract is to cover critical information that the parties may look to contractually enforce during and after employment.
The aim of the handbook is to set out the employer’s policies, procedures and rules. This would include details of sickness absence and sick pay, maternity/paternity/shared parental/adoption and dependants’ leave, flexible working policies, grievance and disciplinary procedures.
Details of an employer’s pension scheme are also likely to be found in its own separate document.
Can employees have their contracts reviewed?
Yes, employees can have their contracts reviewed, for example if there is any wording or clauses that they do not understand or if they have concerns about anything within the contract.
Employment contract disputes, termination and changes to contract
If an employee is leaving your employment and you require clarification on any post-termination restrictions contained within their contract and how enforceable they will be, we can review the contract and provide advice.
If you are looking to change the terms of your employment contracts, we can provide advice on whether those changes can be made and the practicalities of enforcing those changes.
Unless the contract specifically allows changes to be made, you must agree to a proposed change with the affected employee (or all employees if it is a change across the board). Failure to do so may result in a claim for breach of contract being brought against the company, so it is worth getting legal advice if you are unsure on any changes you may want to potentially bring in.
