What is a Contract of Employment?
A contract of employment is a legally binding agreement between you (the employee) and your employer. It outlines the terms and conditions of your employment, including your rights and responsibilities.
The UK Legal Position
There’s no legal requirement for a formal written contract, but employers must provide you with a written statement of particulars within two months of starting your job. This document summarises the key terms of your employment.
Types of Employment Status
- Employee: You have employment rights, like paid holidays and sick leave.
- Worker: You have some employment rights, but not all the same rights as an employee.
- Self-Employed: You run your own business and are not considered an employee.
What’s Included in a Contract (or Written Statement)?
- Job Title & Duties: Your role and responsibilities within the company.
- Pay Rate & Hours: Your salary or hourly wage and your typical working hours.
- Holiday Entitlement & Pay: How much paid holiday you get and how it’s accrued.
- Sick Leave & Pay: Your sick leave entitlement and any sick pay provisions.
- Notice Period: How much notice you or your employer need to give to terminate the contract.
- Pension Scheme (if applicable): Details of any company pension plan.
- Disciplinary & Grievance Procedures: The process for addressing disciplinary matters and employee grievances.
- Confidentiality Clauses: Protecting sensitive company information.
How Long Does a Contract Last?
Your contract can be fixed-term (for a specific period) or permanent (with no set end date).
Are Contracts a Legal Requirement?
No, but it’s highly recommended. A written contract protects both you and your employer by clearly outlining expectations.
Employee FAQs:
- What if I don’t receive a written statement? By law, your employer must provide one within two months. Contact them or seek advice from ACAS (Advisory, Conciliation and Arbitration Service).
- Can my contract be changed? Yes, but generally with your agreement. Your employer should consult with you before making significant changes.
Employer Considerations:
- What can I include in a contract? You can include additional terms specific to your business, like dress code, intellectual property rights, and confidentiality clauses.
- Do I need a lawyer? Consulting a lawyer for complex contracts is advisable.
Remember:
- Keep a copy of your contract and written statement for future reference.
- If you have any questions about your contract, don’t hesitate to ask your employer or seek advice from ACAS.
