What Happens if an Employees Does Not Sign Their Contract?
What Happens if an Employees Does Not Sign Their Contract?
Employment Contract
Peninsula Group, HR and Health & Safety Experts
(Last updated )
Peninsula Group, HR and Health & Safety Experts
(Last updated )
What happens if your employee doesn't sign a contract of employment? We examine a few of the results in this expert guide about current British laws.
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What Happens if an Employees Does Not Sign Their Contract?
FAQs
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An employment contract is a legally binding document that explains all the details surrounding someone's employment.
Yes, there are three main types of employment contracts. These are permanent employment contracts, fixed-term contracts, and casual employment contracts.
A contract of employment outlines job conditions, work duties, and, employment rights. It's important you include all of these within your contracts.
Peninsula can provide you with expert advice on your contracts, meaning you include everything you need to and avoid breaking employment law.
Yes, if you change the terms of an employment contract without the consent of the employee claims can be raised against you. This can lead to further financial damages being awarded.
From small tasks to entire projects – employers have numerous reasons for hiring services from contractors and suppliers. To protect yourself from unexpected risks, you may decide to enter legal agreements through ‘tendering’. In the construction industry, tendering is the process of requesting and receiving a price for a particular form of labour or service.
In this guide, we’ll look at what contract farming is, who’s involved in them, and what your agreements require when conducting business with third parties.
The legal implications of unsigned employment contracts
A contract of employment is an agreement between yourself and your staff members. It’s the very basis of your working relationship and determines the likes of:
Annual wage.
Working hours.
Location of workplace.
Amount of annual leave.
But does an employee have to sign a contract of employment?
Despite it remaining a popular belief, not all contracts of employment have to be in writing for them to be legal under British law.
However, it’s certainly much more beneficial to have a written record of your agreement. It’s also against the law to not provide it.
Once a new starter accepts your offer, then your contract starts. So it’s useful to be able to refer back to it at a later date if the need arises.
But what happens if an employee doesn't provide a signature? If that's the case, is there any law in place preventing your employee from, for example, leaving your business unannounced?
It’s a common question we receive from employees, “What happens if I don’t sign my employment contract?”
Simply put, with no contract signature you and your employee don’t have the right to change the document. Even though you may not have a signature—or even a written contract—this doesn’t mean either side can ignore any previous agreement made.
For example, if an employee agrees to work for you and starts their role, then they’ve essentially acknowledged they’re aware of your terms and conditions and accept them.
So, in summary, does a contract of employment have to be signed? No.
But, as mentioned above, it’s always a good idea to have everything on record in the event you need it at a later date.
Avoiding contractual complications
Other common questions we receive from employees include:
“Can an employer force you to sign a new contract?”
“Do I have to sign a new employment contract?”
At no point does an employee have to sign an employment contract you provide them. It is also within their rights to refuse to sign a new employment contract.
If that happens then you can, of course, speak to the individual and discuss a way around their current issues with what you offered them.
But remember that someone to sign, even if it’s to any changes you have made to their contract, then your agreement is void.
Who can sign an employment contract on behalf of company?
Under British laws, you don’t always need a company representative to sign your contract for you.
Section s43(1)(b) of the Companies Act 2006 states someone can sign on behalf of your business if an individual is acting under your authority.
If the person has implied, or express, authority to sign on your behalf then they can even go as far as to make contracts for you (as well as sign them).
This will class the contract as “signed on behalf” of your business. This is rather than the “executed by” you.
As a final note regarding this, signing an employment contract under duress—using force or pressure—is against the law. It will also immediately invalidate the contract.
Need further help?
Want more help with employment contracts? You can get in touch with us today for expert guidance: 0800 028 2420.
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Peninsula GroupHR and Health & Safety Experts
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