Employment contracts

A contract of employment in the eyes of the law is the basis for any employment relationship. Although there is no legal requirement for a written contract, an employee must receive a statement of particulars of employment within two months of the employee taking up employment; this is in accordance with the Employment Rights Act 1996.

There are specific details that must be drafted into the contract to distinguish a true contract recognised by the law. These obligatory terms include the name of the employer and employee. The job title must be specified and a detailed outline of the job must be explained, this is useful in ensuring that no disputes arise in the future. The start date at which an employee commences work officially is also required and also the details on the number of hours an employee is to work.

An employee's remuneration package is to be specified and it is recommended that a date of review for a person's salary is to be produced. An employee's benefit package like allocated holiday time, sick pay and pension plans is a necessity to any contract of employment.

Depending of the length of employment, an employer must specify a start date for an employee's commencement of work and, if the contract is temporary, the date of the anticipated termination of the contract must be stated.

For employers uncertain of the length of time of an employee's contract, they must take on board the options available in issuing contracts of employment. This could include a probationary period for an employee, this is beneficial for the employer as it predetermines an employee's ability to carry out a job. After the probationary period an employee's performance is reviewed and a decision can be made on whether to issue a long-term contract.

Another important tool for the employer's interest is the use of the protection over intellectual property, which is simply a stipulation which stops employees from leaving the employment of a company and using the skills acquired to compete directly against a company.

Finally, it is useful for an employer to include clauses within a contract as it provides flexibility for an employer to change terms in a contract, whenever it is deemed necessary. However, this does not give an employer the licence to change terms of contract if it obviously unnecessary and unfair.