| Getting that initial contract of employment | | | | that you inform employees whether bank holidays |
| template ready can be a real hassle, and it's | | | | are included or excluded from the figure. There |
| tempting to get a professional to draft it up, but | | | | are certain other aspects you need to consider |
| even at that stage, it's important to know what | | | | when writing this part of the UK contract of |
| you're promising your employee, and to make | | | | employment: |
| sure that there are no loopholes that can be | | | | 1) Whether employees should be allowed to take |
| exploited by less scrupulous employees. Whether | | | | busy periods off (most retail industries will want |
| or not you're using a contract of employment | | | | to avoid this) |
| template or writing one from scratch, you need | | | | 2) Holidays rolling over into the next employment |
| to make sure all the bases are covered. For that | | | | year (though it's important to note that this is not |
| reason, I've written up this guide to explain what | | | | allowed for statutory holiday, only time off over |
| you might need to have on the form, and why: | | | | the minimum.) |
| Firstly, it's important to note that you must give | | | | 3) Any restrictions on holiday time to employees |
| your employees a contract - in fact, by law | | | | who have already served notice |
| you're required to give them a statement of | | | | Sickness |
| terms within 2 months of them joining, but that's | | | | Absence through sickness can be a major drain |
| the bare minimum, and it's really in your interests | | | | on businesses, especially small ones, so it's |
| to give them something more comprehensive. | | | | important to be vigilant with this section. You will |
| This is the kind of thing that company | | | | need to outline what time the worker needs to |
| employment contracts should contain: | | | | contact the employer telling them they will not be |
| Names | | | | in, when a doctor's certificate is required and |
| Can't have an employment contract without | | | | whether the employee will receive statutory or |
| names - both your employee and the company's. | | | | contractual sick pay. |
| This should also include addresses of both parties | | | | Pension |
| Start Date | | | | Here you need to outline the pension scheme the |
| This is particularly important to keep a track of, | | | | employee can expect, whether it be a company |
| because it can be used to work out when | | | | one, a stakeholder one or if there isn't one |
| employees gain new benefits, as well as keeping a | | | | provided by the company. You will need to |
| track as to when they should be up for review. | | | | change any contract of employment template to |
| Job Title and Description | | | | reflect the policy of your company. |
| Put down the same job title that you advertised | | | | Notice |
| with, and then any duties that you feel they may | | | | This is an important one - the notice period. |
| be undertaking. It might be worth covering your | | | | Outlining the period of worktime that needs to be |
| back here and including something to the effect | | | | served before an employee's contract can be |
| that the duties are down to your discretion and | | | | terminated, this is also the place to outline a list of |
| are open to change. If not, they could | | | | actions that constitute gross misconduct, and can |
| theoretically refuse to undertake anything else - | | | | allow an employee to be dismissed without notice. |
| and have the law on their side, so be sure to | | | | If you don't define this clearly in your company |
| leave some space to manoeuvre in your | | | | employment contracts you can be left distinctly |
| company employment contracts. | | | | short-handed of a sudden! |
| Place of Work | | | | Restrictive Covenants |
| This keeps a legal note of the office location in | | | | An intimidating sounding title for an intimidating |
| the employment contract, but can also extend to | | | | piece of the document! This is where you get to |
| allow occasional working from home and of | | | | protect confidential and commercially sensitive |
| course for potential office moves in the future. | | | | information belonging to the employer. You can |
| Hours of Work | | | | also prevent an employee from setting up a |
| This is where you stipulate the number of hours | | | | competing business while in your employment, and |
| the employee needs to keep, and the manner in | | | | for a set period of time from when they leave |
| which they can keep them (e.g: do they have a | | | | the employer. This can also cover preventing the |
| flexitime setup where they need to complete a | | | | employee from encouraging others to leave for a |
| certain number of hours within any given week?) | | | | competing business. You will want to close this |
| The employee can also agree to additional hours, | | | | section with the threat of legal action, should |
| as long as the employer does not demand more | | | | these promises be broken. |
| than 48 hours a week, which would be illegal. The | | | | Disciplinary Policy and Grievance Procedure |
| employee can voluntarily opt out of the law, | | | | This is the part of the employment contract |
| should they wish. | | | | where you outline the company's disciplinary policy. |
| Probationary Period | | | | You state the standards and conduct you expect, |
| This is a nice one to include in the contract, | | | | and the consequences of failure to meet these |
| because sometimes things just don't work out - | | | | standards. |
| either they employee isn't what the employer | | | | The grievance procedure outlines the course of |
| was looking for or the job isn't right. This trial time | | | | action available to employees should they have a |
| typically has a shorter notice period and | | | | complaint they cannot resolve through regular |
| employment can be terminated by either side at | | | | communication with their line manager. |
| any time. This is typically a number of months or | | | | Retirement |
| weeks, but can be extended by the employer if | | | | This states the employee's contractual retirement |
| they put such a clause into the UK employment | | | | age. It's important that this complies with the |
| contract. | | | | relatively recent 2006 age discrimination legislation, |
| Salary | | | | or you could be fighting legal action. |
| This is what your employee expects to see on | | | | Severability |
| their wage slip at the end of each month and an | | | | If you have a template of employment contracts, |
| area fundamental to the employment contract. | | | | rather than tailoring each one to each employee |
| It's worth noting that the figure will be before any | | | | this section is essential. It basically states that |
| tax deductions or national insurance is taken into | | | | each section of the document stands |
| account. | | | | independently of the rest and thus if one does |
| Assessments | | | | not apply to any employee it does not effect the |
| If the employer wishes, they can schedule regular | | | | others. |
| assessments here - every 6-12 months would be | | | | Prior Agreements |
| a sensible figure, allowing you to monitor their | | | | This is an important one to keep in, as it |
| development easily. | | | | expresses that the employment contract contains |
| Deductions | | | | all the terms that should apply, and any other |
| This is the point in the employment contract | | | | agreements - written or verbal - do not count. |
| where you outline all circumstances in which you | | | | Jurisdiction |
| are permitted to make deductions from the | | | | This is required to confirm that the UK contract |
| salary. This is a really good opportunity to cover | | | | of employment is held under the jurisdiction of |
| your back and outline the kind of behaviour you | | | | English courts. |
| expect from your employee. | | | | Particulars of Employment |
| Expenses | | | | Since the Employment Rights Act of 1996, all UK |
| Covering what your employees can expect by | | | | employment contracts are required to have the |
| way of expenses is very important to ensure | | | | main terms outlined on a separate schedule, so |
| they are aware of how much they will be | | | | that both the employee and the employer can |
| covered by you for heir work. Make sure that | | | | easily refer to them, to refresh their memories |
| you avoid errors and fraud by insisting that each | | | | of the main points. |
| claim is backed up with proof of payment. | | | | Make sure you have all these fundamentals of |
| Holiday Time | | | | employment contracts covered, and that each |
| This obviously outlines the period of holiday that | | | | one matches the expectations of the employee |
| an employee is allowed, with the minimum being | | | | and you should have no problem! |
| 24 days including bank holidays. It is important | | | | |