Contracts of Employment

The law requires employees to be given an Employment Contract within two months of the start of their employment.

A contract should set out all the terms and conditions of employment and allows the Company to have clear guidance in case there is a disagreement.

Section 1 Employment Rights Act 1996 requires that the contract includes the following:

1. The names of the employer and employee.
2. The date on which the employment began.
3. The date on which the employee’s period of continuous employment began.
4. Remuneration (ie grade, rate or method of calculating, payment intervals, overtime).
5. Hours of work, including normal working hours.
6. Holiday entitlement, including public holidays and holiday pay and the way holiday entitlement is calculated on termination of employment.
7. Details on sickness or injury, including any provision for sick pay.
8. Pensions.
9. Notice periods which the employee is obliged to give and entitled to receive to terminate the contract.
10. Job title or, alternatively, a brief description of the work he/she is employed to do.
11. Statement that the contract is not permanent, if this is the case and the period for which it is expected to continue or, if it is for a fixed term, the date when it is to end.
12. The place of work.
13. Details of any collective agreements.
14. Information relating to oversees employment where the employee is to work outside of the UK for more than one month.
15. Disciplinary and Grievance procedures.

You should also consider whether to add in clauses on Confidentiality, Intellectual Property, Post Termination Obligations, Data Protection, Return of Company property, Copyright, Other Business, to protect your company.

Avoiding misunderstandings between employers and employees or Directors and Shareholders that may lead to disputes by having a well drafted employment contract is invaluable for your business.

ActifHR is able to assist your business in drafting legally compliant Contracts of Employment and guide you through the process on a step by step basis.

We can also assist your business with:

• Self Employed Contracts
• Consultancy Agreements
• Training Repayment Agreements
• Fixed Term Contracts
• Service Agreements
• Freelance Agreements
• Zero Hours Contract
• Apprenticeship Agreements
• Non-Disclosure Agreements

For more information on other HR Policy support from ActifHR, click on another employment topic from the list on the left of this page.