Why have Contracts of Employment?

Clearly documented terms of employment (and associated policies and procedures) are the first step in protecting your business and reducing the likelihood of disputes or claims arising.

They set the ‘stage’, and give clear boundaries for employees. Very often, when a dispute arises, the first document that will be called for will be the contract of employment, followed by any other appropriate terms or documents (e.g. the disciplinary procedure). If there is no contract, or the terms are ambiguous or even out of date with employment legislation, disputes can escalate. It can then be a matter of what both parties ‘assumed’ to be the terms, and each may have assumed something different!

Clearly drafted documentation can prevent disputes arising. If everyone is clear from the outset – about the rules, the standards and the terms - there is less chance of misunderstandings or disagreements. And if disputes do arise, they can generally be resolved more quickly, easily and amicably.

There is also a legal requirement to provide all employees, within eight weeks of the commencement of employment, with a statement of their main terms of employment (as defined in Section 1 of the Employment Rights Act 1996). You could comply with this statutory duty by giving employees a one-page document. However, it should be remembered that these basic requirements are for the benefit of the employee, and do little to protect your business.
Employment documentation therefore requires careful consideration and clear drafting, in non-legalistic language, to ensure that it protects your business, effectively communicates to employees and meets legal requirements.

The Practical HR Approach

Contracts of employment can be drafted either through our bespoke consultancy services, where consultants work with you, to draft and implement your contracts, or alternatively you can purchase a single contract or our Contracts-In-A-Box package.

Implementation

If you are introducing new or amended contracts, you cannot impose these on employees. This could be a breach of contract or possibly grounds for constructive dismissal. It is therefore important that procedures are followed and we provide support with implementation and take employees through a process of consultation to gain their agreement to the new terms.