Title: Key Elements of an Employment Contract: What Employers Must Include
UK employers are legally obliged to provide employees with a written statement of terms and conditions highlighting essential terms of employment. This statement should be provided on the first day of employment. In addition, a wider written statement, including the company’s policies on training, pension rights, and disciplinary procedures, must be offered within two months. This article provides an overview of the important elements that must be included in an employment contract to ensure employers and employees are adequately protected.
Key Elements of an Employment Contract:
1. Basic Details:
The employment contract must include the names of the employer and employee, addresses, job title, and a clear description of duties and any potential additional duties.
2. Salary and Payment:
The employment contract must include the agreed salary, payment schedule, and expected payment date. It should also contain any details regarding deductions or additional payments such as bonuses.
3. Working Hours:
Working hours, including overtime, must be specified in the employment contract. Employers should note any potential variations such as night shifts or weekends.
4. Holiday Entitlement:
The contract must include the number of days for holiday entitlement, including any potential flexibility regarding rolling over unused holiday days.
5. Probationary Period:
Including a probationary period can provide employers with the option to terminate employment during the early days if necessary. The contract should clearly state the length of this period.
The contract can outline the benefits offered to employees, such as pension plans, healthcare, or other perks.
Training that is necessary for the proper performance of a job role must be addressed in the contract, including any cost-benefit arrangements.
8. Sick Pay:
The employment contract should specify the company’s sick pay policies, including requirements for doctor’s certificates, the amount of pay, and how long it’ll be provided for.
The employment contract should specify notice periods for both employers and employees and detail any actions that could result in dismissal without notice.
10. Employment Abroad:
If the employee will work abroad, the contract must include details such as the length of stay, currency, and benefits.
Employment contracts provide essential legal protection for both employers and employees. Ensuring contracts contain all necessary details increases transparency, creates a culture of trust, and minimizes the risk of compliance issues for businesses. Businesses should carefully consider the circumstances of their business and seek professional advice to ensure their employment contracts meet their needs.