The advantage of a written contract is that everyone can clearly see what the terms are and know where they stand. This is also important in the event of a dispute between the employer and the employee. Also when drafting a contract, keep in mind that the Fair Work Act provides employees with considerable protection and flexible work conditions in the workplace. Whether you are updating your employment contracts or drafting them for the first time, consider including the following ten points.
In Employment Law. A clear job description. This should set out the role and duties of the employee. A clear job description makes it easier to tell if an employee is not performing their duties and needs additional assistance or remedial action. A contract may be oral or in writing or a mixture of the two and the terms of a contract may be express explicitly agreed between the parties or implied terms that are too obvious to mention or are developed through custom and practice.
When a dispute arises the starting point for interpreting the terms and conditions is usually the written contract of employment. However, custom and practice will often overrule what is written in the contract of employment.
Although there is no legal requirement to provide a written contract of employment, employers have a duty to provide employees with a written statement of the specified terms of employment under S.
This is not technically the same as a written contract of employment because it does not have to record all of the terms of employment, just the main ones. There is no freestanding right to compensation for failure to provide a S. An employee will only receive compensation for breach of this right to receive a S.
Some employers believe that not committing anything to writing gives them more flexibility however this is incorrect as the lack of a written contract causes uncertainty over the terms of the contract. Employees will have employment rights regardless of whether or not they are provided with an employment contract, however, provision of a contract of employment makes it clear what is expected of employees and what they are entitled to.
A written contract of employment noting the current terms provides certainty and helps prevent or resolve disputes as both parties are able to identify specific terms of the agreement. When a contract of employment has not been provided the default position will be that statutory employment provisions will apply. For example, if an employee has not been provided with a contract of employment with a specific clause about how much notice they should provide on termination, the employee when they have been employed for one month or more will only be obliged to provide the legal minimum requirement which is one week.
In the event of a dispute, tribunals will treat the S. It has a clear start and end date. There is a limit to how long you can keep someone on a fixed term contract before they automatically become permanent. Zero Hours There is much controversy around these contracts. They might be best described as an agreement for one party to make themselves available for work from time to time and the other party to offer work if any is available from time to time.
They seem to work best in industries impacted by significant seasonal fluctuations in demand. What goes into an employment contract? Jump to: 1. What is an employment contract? What should an employment contract include? When do I need to issue an employment contract?
Video: Can I change an employment contract? What is a written statement of particulars? Quiz: When do I need to issue a written statement of particulars? What are the different types of employment contract? Recommended reading. Login to add to your reading list. Salary Make sure it is clear whether the salary quoted is an annual, monthly or hourly salary.
Hours of work This is an interesting one, you have to think very carefully about the nature of the work and what is required.
Benefits Any benefits that form part of the contract should be set out clearly, this includes both statutory benefits required by law and any enhancements you make to those benefits.
Disciplinary and grievance procedures You are required to advise your staff of the disciplinary and grievance procedures. For example, you might get a Christmas bonus every year, or the business might close early on particular days. If a company practice has become a part of your contract then your employer must stick to it and cannot normally change it without your agreement. Whether a particular practice has become a part of the contract can be very difficult to decide.
There is no fixed time limit after which something is definitely part of the contract. Among other things, it depends on:. If either you or your employer breaks a term of the contract, the other is entitled to sue for breach of employment contract.
If your employer is bought by another company, or moves to a new location, your existing terms and conditions should continue, although the new owners should give you an amended written statement in their name. We will not reply to your feedback. Don't include any personal or financial information, for example National Insurance, credit card numbers, or phone numbers.
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