Contracts

Anyone legally classified as an employee or worker has the right to a ‘written statement of employment particulars’ on or before the start date as of April 2020. Those legally classified as workers do not have the right to a written statement if they started the job before April 2020. 

A written statement of employment particulars sets out the terms of the employment contract in writing. It is made up of two parts – a principal statement and other terms of employment. This statement includes the main terms of someone’s employment, such as:

• rates of pay

• hours of work

• holiday and sick pay entitlement

• notice periods

• disciplinary and grievance procedures

This statement is often referred to as the ‘employment contract’, but by law, the employment contract is broader than just a written statement that only covers the employee’s basic rights.

A contract of employment is a legally binding agreement between an employer and employee/worker that allows an employer to draft specific clauses which at best can fully protect their business and at least can clear up any disputes should a claim be brought before a tribunal.

An employment contract is made up of:

• specific terms agreed in writing (‘express terms’), such as the employee’s pay and working hours

• terms that are part of employment law (‘statutory terms’)

• terms too obvious to be written (‘implied terms’) – it can still be a good idea to put these things in writing, so everyone’s clear about their rights and responsibilities

• terms put into the contract from other sources (‘incorporated terms’) such as a staff handbook or an agreement affecting many employees

As an employer, you do not have to put terms that are a part of employment law into writing. The exception is any information that must be in the written terms. For example, if the employer pays an employee the minimum wage, they must display that amount in the written document.

The contract should be signed by the employee and employers and be reviewed on a regular basis (usually as part of an annual appraisal scheme). If your organisation uses agency workers, check the regulations and guidance on the ACAS website.

It is also important to remember that volunteers are not employees and they should not be given a contract of employment. Instead, they should be given a volunteer agreement