Cutting corners with your employment contracts holds as much risk as having no contracts at all.
Don’t DIY your employment contracts
An employment contract is legally binding, but only if they have been drafted correctly.
A template downloaded from the internet might look professional but it won’t necessarily tick all the boxes for your business or provide you with the relevant legal protection. Some sites can provide 45+ contract and contract clause templates, but do you know which ones are right for your business and provide the right protections?
It is critically important to remember that employment contracts need to be compliant with UK law. Because of the serious legal risks, it is advisable you don’t attempt to create these yourself.
What should be included in your Employment Contract?
Employment and worker contracts must detail all the items listed in the Employment Rights Act 1996, updated in April 2020.
Employment contracts typically include: business name, start date, details of the work, conditions of pay, hours of work, holiday entitlement, sick pay, notice period, pension and any collective agreements.
An important area to think about are notice periods. If the employee is key to your business or hard to replace you may wish to give a longer notice period than the statutory minimum.
Do you have any areas that you want to include that can protect your business from harm such as IT, data security, privacy and social media use? What about policies that detail your company’s approach to family commitments and employee well-being, which can form part of your recruitment and retention strategy.
Do you have adequate coverage in case your employee(s) leave to go to a competitor taking with them all your client lists and prices? A well drafted Restrictive Covenant in the contract can afford you protection.
Does it have to be in writing?
You can agree the details of the contract verbally, however a written contract should be provided on or before someone’s first day.
Putting everything in writing ensures both you and the employee are clear on all the details related to their employment and therefore will be no confusion or misunderstandings.
Help from The HR Dept
At The HR Dept, we can put together all your employment contracts that are tailored to your business. This ensures they are legally compliant and your company isn’t exposed to unnecessary risks as you grow your workforce.
