What is a contract of employment?

A contract of employment is an agreement between an employer and employee and is the foundation of the employment relationship. It will normally be the source of most employment rights and obligations.

As an employer, all your employees will have a contract of employment with you as most employment contracts do not need to be in writing to be legally valid. Without a written contract of employment, the contract will be based on statutory rights and what has become established over time (i.e. custom and practice).

 

Why do I need to provide written contracts to my employees?

It is preferable to have a written contract setting out all the main terms and conditions of employment in order to avoid any problems later in an employment relationship. As can be expected terms which are agreed orally are difficult to prove. Disputes often occur due to different understandings about terms and according to ACAS ‘simple misunderstandings over what is or what is not in a contract are one of the main causes of employment tribunal claims’.

Employees must be given a written statement of the most important terms of the contact within 2 months of starting work (Employment Rights Act 1996 sections 1-12).

A contract of employment is an agreement between an employer and employee and is the foundation of the employment relationship. It will normally be the source of most employment rights and obligations.

As an employer, all your employees will have a contract of employment with you as most employment contracts do not need to be in writing to be legally valid. Without a written contract of employment, the contract will be based on statutory rights and what has become established over time (i.e. custom and practice).

 

HR BOSS provides the following types of contracts:

  • Basic Contract for your junior employees
  • Senior Employee Contract
  • Fixed-term Contract
  • Directors Service Agreement
  • Zero Hours Contract

You may also want to protect your legitimate business interests by inserting post-termination restrictive covenants into senior or sales employee’s contracts.

The contract of employment makes specific reference to a number of policies and procedures, which are key to the employment relationship. It is essential that employees are made aware of these policies and procedures and any others that define the responsibilities and obligations of the employer and the employee. The simplest way to do this is to include these policies and procedures in a staff handbook, which is issued to all employees or to which they have access. Direct to staff handbook page.

We have standard fees for contracts and the price will depend on the type of contract and the seniority of the employee.