Thank you to all those who attended our Employment Contracts Masterclass last week – it was great to see you there.

This is a subject area that always generates lots of questions so we thought we would provide you with a few key facts.

What is a contract of employment? – A legally binding agreement between an employer and employee.

What are Express terms? – Those stated in writing or verbally. They can also include other documents such as staff handbooks and policies.

What are Implied Terms? – May be implied due to statue or custom & practice. Examples could be the employer providing a safe place to work or a duty of mutual trust & confidence between the two parties.

What types of contract are there? – Fixed term, casual/ zero hours, indefinite period, term time only. The contract should be appropriate for the work being done.

How soon should a contract of employment be issued to the employee? – It must be issued within 8 weeks of the start of employment.

Compulsory contract clauses:

  • Name of Employer
  • Name of Employee
  • Job Title, Role/Duties
  • Place of Work, requirement to travel, working abroad
  • Date of commencement, continuous employment
  • Working Hours, days, shift patterns and total number of hours (weekly or annual)
  • Type of Pay, benefits and  commission
  • Amount of pay, pay basis, how & when pay is paid, additional payments, bonus or benefits.
  • Annual leave entitlement & arrangements for Public/Bank Holidays
  • Pension arrangements & contracting out
  • Discipline/Grievance arrangements
  • Notice period employer and employee
  • Trade union representation/collective agreements
  • Pay in Lieu of Notice provision and claw back
  • Sickness absence /company sick pay entitlements

Can you vary a contract of employment? – Yes, provided you have consulted with the employee regarding the changes and obtain the employees agreement. There are other options available however these pose a greater risk.

Our next Masterclass will be taking place on 16th May when we will be looking at appraisals. We hope to see you there!

If you have any questions on your employment contracts or any other queries regarding HR just get in touch by calling our experienced and helpful team of experts on 01736 339384 or email HelloThere@sapiencehr.co.uk.