What should be included in a contract of employment?
7 February, 2018
We are often asked when employees should receive their written terms of employment and what they should contain.
Employees have the right to receive a written statement of their principal terms and conditions within 2 months of the start of their employment.
A qualifying employee, who has not received a written statement may refer the matter to an employment tribunal.
A tribunal can award compensation of two or four weeks’ pay (at the tribunal’s discretion).
A week’s pay for this purpose is subject to a statutory limit of £489 per week.
As a minimum this statement must include details of the following:
- Name of employer and employee
- Employment start date
- Job title or brief description
- Place of work
- Remuneration and pay intervals
- Hours of work
- Holiday entitlement
- Entitlement to sick leave and pay
- Pension scheme provision
- Notice periods or date of expiry of fixed term contract
- Details of any collective agreements in force
- Reference to disciplinary and grievance procedures
Although most of these details should be contained in a single document, reference may be made to the information contained in other documents to which the employee has access, such as a disciplinary procedure or pension scheme details.
We also recommend a variety of other clauses, aimed at helping protect the business.
These may include areas such as:
- Employee warranties
- Travel, flexibility and expense requirements/entitlements
- Lay offs / short time clauses
- Bonus and commission schedules
- Eligibility for other non-monetary benefits
- Deductions clauses
- Holiday clauses including carry over or loss if not taken
- Property and equipment issued
- Post termination restrictions