What are employment contracts?
An employment contract is a legally binding agreement, setting out the rights, responsibilities, duties and obligations of you as an employee and also of your employer.
Having a written contract in place clearly outlines what is required from the working relationship and protects the interests of both parties.
Types of employment contracts
There are a number of different employment contracts you may be offered depending on the type of role and how the business operates. 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 terms are included in an employment contract?
- Express terms – the specific terms which have been agreed between the parties and are present within the employment contract itself. Express terms typically include things like pay, hours of work and notice periods.
- Implied terms – often not specifically included within the contract itself but are ‘implied’ into the contract by common law or statute. Implied terms often come from custom and practice and can include things like duty of fidelity (acting with honesty in the best interests of the employer) and confidentiality.
- Incorporated terms – incorporated terms are most often found in policies and/or the employee handbook. The employment contract might refer to the existence of a particular policy and will usually explain whether such a policy does, or does not, form a term of the contract.
- Restrictive covenants –commonly found as a list of ‘post-termination restrictions’ within the employment contract. These restrictions aim to prevent the employee from doing certain things once their employment has terminated, for example working for a competitor for a specific time period and/or within a specific geographical range or poaching staff/clients.For an employer, the purpose of having restrictions in place is usually to minimise the risk of confidentiality breaches or the misuse of intellectual property. However, employers need to be careful that covenants are not overly restrictive, for example putting them in place for an unreasonably long time period (over 12 months), as this can render the restrictions unenforceable. Employees should keep this in mind when reviewing any restrictions contained in their own contracts.
- Collective agreements – this is an agreement between an employer and a trade union. An employer can agree to terms and conditions with the union in relation to employees who are covered by the agreement.
What should be included in an employment contract?
The purpose of the contract of employment is to outline the terms and conditions of the job. The main elements which should be included are:
- 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
Can I get my employment contract reviewed?
Our employment lawyers can review your employment contract and explain any wording or clauses that you may not understand, have concerns about or that require further clarification.
Employment contract disputes, termination and changes to contracts
If you are considering leaving your job and require clarification on any post-termination restrictions contained within your contract, we can review your contract and advise you on the nature of the restrictions and the extent of their enforceability.
If your employer is trying to change the terms of your employment contract, we can provide advice on your rights and the enforceability of any terms and proposed changes.
Unless the contract specifically allows changes to be made, your employer must agree to a proposed change with you. If they fail to do so, you may have a claim for breach of contract. We can advise you on your prospects of successfully bringing a claim for breach of contract, the tribunal process, time limits and next steps.
What are employment contracts?
An employment contract is a legally binding agreement, setting out the rights, responsibilities, duties and obligations of you as an employee and also of your employer.
Having a written contract in place clearly outlines what is required from the working relationship and protects the interests of both parties.
Types of employment contracts
There are a number of different employment contracts you may be offered depending on the type of role and how the business operates. 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 terms are included in an employment contract?
- Express terms – the specific terms which have been agreed between the parties and are present within the employment contract itself. Express terms typically include things like pay, hours of work and notice periods.
- Implied terms – often not specifically included within the contract itself but are ‘implied’ into the contract by common law or statute. Implied terms often come from custom and practice and can include things like duty of fidelity (acting with honesty in the best interests of the employer) and confidentiality.
- Incorporated terms – incorporated terms are most often found in policies and/or the employee handbook. The employment contract might refer to the existence of a particular policy and will usually explain whether such a policy does, or does not, form a term of the contract.
- Restrictive covenants –commonly found as a list of ‘post-termination restrictions’ within the employment contract. These restrictions aim to prevent the employee from doing certain things once their employment has terminated, for example working for a competitor for a specific time period and/or within a specific geographical range or poaching staff/clients.For an employer, the purpose of having restrictions in place is usually to minimise the risk of confidentiality breaches or the misuse of intellectual property. However, employers need to be careful that covenants are not overly restrictive, for example putting them in place for an unreasonably long time period (over 12 months), as this can render the restrictions unenforceable. Employees should keep this in mind when reviewing any restrictions contained in their own contracts.
- Collective agreements – this is an agreement between an employer and a trade union. An employer can agree to terms and conditions with the union in relation to employees who are covered by the agreement.
What should be included in an employment contract?
The purpose of the contract of employment is to outline the terms and conditions of the job. The main elements which should be included are:
- 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
Can I get my employment contract reviewed?
Our employment lawyers can review your employment contract and explain any wording or clauses that you may not understand, have concerns about or that require further clarification.
Employment contract disputes, termination and changes to contracts
If you are considering leaving your job and require clarification on any post-termination restrictions contained within your contract, we can review your contract and advise you on the nature of the restrictions and the extent of their enforceability.
If your employer is trying to change the terms of your employment contract, we can provide advice on your rights and the enforceability of any terms and proposed changes.
Unless the contract specifically allows changes to be made, your employer must agree to a proposed change with you. If they fail to do so, you may have a claim for breach of contract. We can advise you on your prospects of successfully bringing a claim for breach of contract, the tribunal process, time limits and next steps.
