Is Your Employment Contract Up to Date?

If you're wondering whether your employment contracts are current, you're not alone. Many employers are unaware of the changes that came into effect in April 2020. In this article, we'll address some common questions about employment contracts and provide essential information to ensure your contract templates meet the necessary requirements.

What is a Contract of Employment?

A contract of employment is a legally binding agreement between an employer and an employee. This agreement is formed when an employee accepts a job offer, whether verbally, in writing, or a combination of both. However, specific details of the contract must be in writing.

When Does the Contract Start?

An employment contract begins when the employee starts working, even without a written agreement. However, it may start earlier under certain conditions, such as when a job offer is accepted, and all conditions are met. It's advisable to provide written job offers to avoid confusion.

Do I Need to Issue a Contract to Every Employee?

Yes, every employee, employed for more than one month, has the right to receive an employment contract. Best practice is to provide the contract before the employee's start date.

Where Do Contractual Terms Come From?

Contractual terms can be express terms agreed upon verbally or in writing. They can also arise from collective agreements or implied terms based on custom and practice, common law, or statutory requirements.

What Should the Employment Contract Cover?

The employment contract must include key details such as employee and employer names, start date, pay, working hours, and more. Some details can be in a separate document, including sick leave, pension arrangements, notice periods, and more.

What Else Can I Include?

Consider including clauses like lay-off or short-time working if your business experiences fluctuations in demand. You can also include terms related to recovering training costs if an employee leaves within a specified period.

Does the Employment Contract Need to Be Signed?

While a contract doesn't need a signature to be valid, it's good practice to have it signed and on file for clarity and documentation.

Does the Employment Contract Need to be Witnessed?

In the United Kingdom, employment contracts do not typically need to be witnessed to be legally valid. Unlike some other legal documents, such as wills or property deeds, employment contracts do not require the presence of witnesses to make them enforceable.

However, it's important to note that some specific employment-related agreements or clauses within employment contracts, such as non-disclosure agreements (NDAs) or post-termination restrictive covenants, may require witnesses or notaries for added legal enforceability. If you have such clauses in your employment contracts, you should get specialist advice to ensure compliance with all legal requirements.

What About Future Changes to the Contract?

Employers must keep the contract accurate and up-to-date. When mandatory terms change during employment, employers must provide a written statement within one month of the change.

For customised employment contracts tailored to your industry and business needs, don't hesitate to get in touch. Book in some time to see how we can support you with any of the above.  Book a convenient time for you here

In a nutshell, we’ll put the HR foundations in place - so you can get on with growing your team and your business. If that sounds helpful please get in touch with Carol@LemonadeHR.co.uk