How to draw up an employment contract

UK employers are legally sure to offer a written assertion of phrases and situations, laying out the essential phrases of the engagement, to every worker by the primary day of employment.

Inside two months after the beginning of employment, employers should present a wider written assertion or contract of employment which outlines insurance policies on coaching, pension rights and disciplinary and grievance procedures.

Upon getting first established the particular person’s employment standing – whether or not they’re an worker or a employee – we’d advocate a correct contract from day one slightly than two separate paperwork. This enables employers to stipulate phrases to cowl essential areas equivalent to knowledge safety, confidentiality, reference necessities and the like.

‘We advocate that employers present the widest-ranging contract as early as doable throughout the engagement’

We advise our purchasers that it’s good enterprise observe to do that from the start of employment, not solely as a result of it creates a tradition of rigour and belief, but additionally as a result of it saves time in the long term by avoiding the necessity to problem a wider assertion or contract afterward.

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What the employment contract should embody

As an employer, the principal employment assertion should embody at the least the next particulars:

• the names of the employer and the worker or employee, together with addresses
• the title of the job in query and an outline of the work to be completed, with some other anticipated or potential duties, to permit for some flexibility
• the date when the engagement begins
• how a lot and the way typically an worker or employee will receives a commission, earlier than tax and nationwide insurance coverage, in addition to the anticipated date of fee
• working hours, together with any potential variation equivalent to Sundays, evening shifts or extra time
• holidays, detailing days per 12 months that they’re entitled to (professional rata if the worker is working part-time) on a set annual interval and together with details about rolling vacation over
• location, in addition to any potential for relocation to provide further flexibility to the employer
• anticipated period for the job, together with the end-date if the engagement is on a fixed-term contract
• any probationary interval, which provides employers or workers the choice to terminate the engagement at quick discover throughout the early days or the employment
• particulars about advantages the worker can anticipate, equivalent to childcare vouchers or lunch being included
• coaching that’s compulsory for correct efficiency of the function, and whether or not or not that is paid for by the employer
• sick pay and procedures round it, when it comes to requirement for a physician’s certificates and the fee the worker will obtain
• different paid go away equivalent to maternity or paternity go away
• discover durations – the period of time each the employer and the worker will likely be requested to offer earlier than termination of the engagement, in addition to details about any actions which may represent gross misconduct, and which may result in dismissal with out discover.

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Employment contract for workers working overseas

There are additionally some particulars which employers should embody if the worker or employee will likely be required to work exterior the UK for greater than a month.

These are:

• the period of time that they are going to must be overseas for
• the foreign money through which they’re going to be paid
• any extra pay or advantages that they are going to obtain
• phrases relating to their return to the UK

Relating to all of this data, it’s as much as the employer to decide on whether or not they embody this it within the principal assertion or as a part of a separate doc. In the event that they select the latter, then the worker or employee will need to have cheap entry to it, equivalent to through the employer’s intranet.

The broader written assertion

As talked about earlier, we advocate that employers present the widest-ranging contract as early as doable throughout the engagement, with a view to present readability relating to the connection and to minimise threat of publicity to unfair dismissal claims that are detrimental to each events.

If, nevertheless, you select to offer the broader assertion on the two-month restrict, this doc should additionally embody data relating to:

• the worker’s rights to your organization pensions and pension schemes
• any rights to collective agreements the place worker representatives can negotiate for phrases and situations on their behalf
• some other proper to non-compulsory coaching offered by the employer
• particulars relating to disciplinary and grievance procedures

We might additionally advocate that contracts of employment are thought-about fastidiously in order that they replicate the actual circumstances of the enterprise in query. Skilled recommendation might pay dividends right here.

Sue Tumelty is founder and govt director of The HR Dept

Extra on employment legislation

Employment legislation modifications in 2023 – Adjustments to vacation entitlement for zero-hours staff, larger Minimal Wage pay and a bonfire of EU regulation are all on the playing cards this 12 months