The Importance of a Good Employment Contract

An employment contract is a legally binding agreement that defines the working relationship between employer and employee, outlining expectations, rights, responsibilities, and obligations. It is crucial for both parties: it provides job security and basic rights for employees, while protecting the business and ensuring compliance for employers.

Key Inclusions in an Employment Contract

According to the Employment Rights Act 1996, a written statement of particulars must be provided to employees within eight weeks of starting work. This statement should include:

• Names of the employer and employee

• Job title or description, start date, and any relevant continuous employment dates

• Contract duration if temporary or fixed-term

• Pay details and calculation methods

• Working hours and location

• Holiday entitlement

• Notice periods

• Probation period details

• Pension arrangements

• Disciplinary and grievance procedures

• Additional benefits (e.g., childcare vouchers)

• Obligatory training details

• Collective agreements

Protecting the Business

Beyond legal requirements, contracts should also safeguard the business by:

• Outlining performance management and monitoring

• Including dismissal and suspension policies

• Setting rules for changes to employment terms

• Adding confidentiality clauses to protect sensitive information

• Addressing remote working compliance

• Restricting post-termination competition

• Managing additional duties and flexible working policies

• Ensuring property management (e.g., laptops)

• Including a warranty for the employee's right to work in the UK

• Restricting third-party rights

• Setting health and safety rules

A 'catch all' clause demanding the employee works in the employer's best interest can cover unforeseen circumstances. Finally, both parties should sign and date the contract to formalise the agreement.

If in any doubt, get in touch for professional advice!