What is an Employment Contract?
An Employment contract is a legally binding agreement between the employer and the employee. Terms are defined under the Employment Rights Act 1996.
Legal Requirements
Under the Employment Rights Act, employers are required to issue employees with a written statement of particulars ‘Employment contract’ outlining the terms and conditions of the employment. Employers are required to provide the Employment contract on or before the employment start date (these changes were effective from 6 April 2020).
What should be included in the contract?
Since April 2020, employers are required to provide additional terms in their employment contracts. Contracts should now include a number of terms outlining who the employer is, the working pattern and hours, entitlements to paid leave, probation period, the benefits provided and training conducted.
There is a long list of other inclusions that make up the content of the employment contract.
In addition, for senior roles this may also include restrictive covenants clauses to prevent their employees from competing on business after they leave the employer.
What employers should do?
- Review your current Employment contract terms and clauses, to ensure that you are compliant and that you have the appropriate business clauses in place to protect your business
- Review your current employment practices, ensuring that employment contracts are issued to new employees before or on the employment start date (our recommendation is before they are due to start, so that they have the time to review the terms on which they are being employed on)
- Carry out a full audit of your current employee files, ensuring that each employee has a signed employment contract
- Provide updated employment contracts to incorporate the new terms.
At Nockolds HR we can provide the business with a template employment contract incorporating the legal requirements, and tailored to your business to incorporate your employment terms.
As part of our HR Toolkit: New starter pack, New business owner, we also provide a Privacy Policy, Working Time Directive Opt Out Form, to be included with the employment contract.
For further information and to discuss your employment contract, please contact the Nockolds HR team on 0345 646 0406 or fill in our online enquiry form and a member of our Team will be in touch.