The Importance of Employment Contracts
An employment contract is a legally binding agreement between the employee and employer setting out implied and explicit terms and conditions of the employment. It can be agreed both verbally and in writing. Parts of an employment contract can also be agreed through conduct, referring to a situation where someone’s actions show there is an agreement, even though they have not written it down or spoken about it.
Employment contracts are critically important as they ensure that both the employee and employer have a clear understanding of what is expected and obligated during the term of employment.
Difference Between an Employment Contract and an Employee Handbook
An employment contract is a legally binding agreement between the employee and employer setting out implied and explicit terms and conditions of the employment. On the other hand, an employee handbook is a comprehensive document created by the employer that communicates the company’s policies, procedures, and expectations to its employees.
An employment contract will set out terms such as the job role, salary and benefits, working hours, termination provisions, and confidentiality or non-compete clauses. Alternatively, an employee handbook will contain information on policies, procedures, flexibility, reference material, and other general or non-contractual information.
Our Employment Contracts and Handbooks Services
Our friendly and knowledgeable team is here to provide expert support for all your employment law needs related to contracts and handbooks. Our offering includes a comprehensive range of services, including:
- Creating employment contracts;
- Reviewing employment contracts;
- Creating company policies;
- Company policy reviews; and
- Creating staff handbooks.
Whatever your specific needs, we’re here to help you navigate the complexities of employment law with confidence.
What Can Go in an Employment Contract
Express Terms
Express terms are the specific provisions that are clearly stated and agreed upon by both the employer and employee in the employment contract. These terms cover key elements such as salary, job duties, working hours, and notice periods, and are legally binding on both parties.
Implied Terms
Implied terms are not written into the contract but are understood to be part of the agreement due to common law, statutory requirements, or the nature of the employment relationship, such as the duty of an employee to act in good faith or the employer’s obligation to provide a safe working environment.
Incorporated Terms
Incorporated terms refer to provisions that, although not explicitly stated in the written employment contract, are still part of the agreement because they are referenced from external documents, policies, or agreements, such as terms from collective bargaining agreements or workplace policies.
Employment Contracts and the Law
The Employment Rights Act 1996 is the primary piece of legislation governing employment contracts in the UK. It establishes the requirement for employers to provide written statements of employment particulars for employees who have been employed for more than one month. This document must include key details like the job title, salary, working hours, holiday entitlement, and notice period.
Furthermore, the Equality Act 2010 stipulates that employment contracts must not include terms that discriminate against employees based on their protected characteristics, such as age, gender, race, disability, sexual orientation, religion, and others. Discriminatory clauses are entirely unenforceable.
Employee Handbook Advice
When constructing an employee handbook, it’s important to create a clear, concise, and accessible document that outlines the key policies, expectations, and values of your organisation. The document should consist of essential information such as workplace conduct, health and safety guidelines, anti-discrimination policies, and details on employee benefits and leave entitlements.
Make sure the language is straightforward and easy to comprehend so employees can easily understand their rights and responsibilities. It’s also important to review and update the handbook regularly to ensure it remains compliant with current laws and reflects any changes within your organisation.
Reviewing Company Policies
Social Media
Reviewing your social media policies regularly will ensure employees understand the boundaries between personal and professional use of social media, especially regarding their representation of the company online. Regular updates can help to address emerging issues such as the use of social media for business purposes, confidentiality concerns, and the potential for reputational damage.
Onboarding Procedures
Regularly reviewing your onboarding procedures is essential to ensure they align with best practices and any changes in employment law. This process should effectively introduce new hires to your company culture, policies, and expectations while providing them with the necessary training and resources to succeed. An updated onboarding policy helps foster employee engagement and retention by ensuring a smooth and welcoming transition into the company.
Working From Home
It’s crucial to regularly review your working from home policy as the remote working landscape continues to develop with time. The policy should cover key areas such as employee productivity, communication expectations, health and safety, and data protection. A regular review of the policy can help to clarify the responsibilities of both the employer and employee, creating a structured and supportive environment for remote working.
Regular Employment Contracts, Handbooks And Policy Reviews
Regularly reviewing employment contracts, handbooks, and policies is important to ensure they remain compliant with current laws and accurately reflect your business practices. As your company grows or changes, these documents may need to be updated to reflect new roles, benefits, or workplace policies. Regular reviews help maintain clarity, consistency, and fairness, reducing the risk of misunderstandings or disputes and ensuring both your employees and your business are properly protected.
Why You Should Consult A Solicitor For Employment Contracts, Handbooks, and Policy Reviews
Consulting a solicitor for employment contracts, handbooks, and policy reviews will ensure your documents are legally sound, current, and tailored well to your specific business needs. Employment law can be complex and is constantly evolving, and a solicitor can help you avoid costly mistakes, such as non-compliance with statutory requirements or overlooking key legal protections.
Why Choose 365 Employment Law?
Contacting an employment solicitor is an important first step in handling issues regarding employment contracts and handbooks. If you’re looking for employment law advice and support, 365 Employment Law will work with you every step of the way to ensure you achieve the best possible outcome.
We have a wealth of experience advising employers across Sussex in all aspects of employment law. Based out of our office in Worthing, West Sussex, we support employers in a range of contentious and non-contentious employment law matters. Get in touch with our friendly team today for an informal conversation about your needs.
Frequently Asked Questions
Do I legally need to provide an employment contract?
Employers are legally required to provide an employment agreement to employees who have been employed for more than one month. While this doesn’t always mean a full contract, it must include key details such as job title, salary, working hours, and notice periods.
How often should employment contracts be reviewed?
Employment contracts should be reviewed regularly to ensure they remain compliant with current laws, reflect changes in company practices, and protect both the employer and the employee. A review is typically recommended whenever there are significant changes in employment law, company policy, or the employee’s role.
What should I do if I need to change an employee’s contract?
If you need to change an employee’s contract, you must obtain their consent to the proposed changes. Changes should be made in writing and discussed with the employee to ensure there is a mutual understanding. If an employee refuses this, you may need to enter negotiation or consider other options such as providing notice under the contract’s terms.
Can an employer change the terms of an employment contract without the employee’s consent?
Generally, an employer cannot unilaterally change the terms of an employment contract without the employee’s consent. If an employer wants to make changes, they must discuss and agree on the revisions with the employee. In some cases, if the employee refuses, the employer may need to provide notice or consider terminating the contract and offering a new one.
What should I do if I don’t have a written employment contract?
If you don’t have a written employment contract, employees are still entitled to a written statement of employment particulars after one month of employment. It’s important to provide this as soon as possible to avoid legal complications. In the absence of a formal contract, terms may be implied by law or from other company documents, but it’s always advisable to have a written contract for clarity and protection.
Can an employee sue if their contract is breached?
If an employment contract is breached, the aggrieved party can potentially take legal action. This could involve claims for damages or specific performance, depending on the nature of the breach. It’s important to address any disputes early on to avoid costly legal proceedings.
How can I ensure my employment contract complies with the latest employment laws?
To ensure compliance, regularly review your contract against current employment laws, such as those concerning minimum wage, working time, and discrimination protections. It’s also important to stay informed about updates in legislation. Consulting with an employment solicitor is the best way to ensure your contract is legally sound and up to date with any changes in the law.
What happens if there is a dispute over the terms of an employment contract?
If there is a dispute over the terms of an employment contract, both parties should first try to resolve the issue through informal discussions or negotiations. If this is unsuccessful, more formal routes, such as mediation or legal action, may be necessary. In some cases, employment tribunals can handle disputes regarding contract terms or breaches of employment law.