Express Terms

Employment contracts are filled with a variety of legal expressions. One you must ensure you understand are express terms.

Express terms are something both parties in a contract agree to. If you fail to comply with them, you risk breaching your employment contracts. As a result, staff could raise a breach of contract claim against you at an employment tribunal.

In this guide, we'll discuss express terms, your legal obligations, and the legal consequences of breaching an employment contract.

What do express terms mean?

Express terms mean the conditions in an employment or business contract that both parties acknowledge. Put simply, they outline the legal rights and duties of employers and their employees.

Express terms are vital in upholding an effective working relationship between both parties. And cannot be changed without mutual consent from either.

What is the difference between express and implied terms?

The difference between express and terms implied is that an express term is a clear condition both parties acknowledge. An implied term is common law the courts imply, and doesn't need to be stated in an employment contract. They can override express terms, but this depends on the circumstances.

It doesn't matter whether you or the employee intended the implied term to be included, the court will deem it an obvious condition. For example, implied contract terms might include an employee's right to equal pay, or the duty not to destroy mutual trust or confidence.

What are some examples of express terms?

As an employer, you'll come across several examples of express terms in your employment contracts. For instance, if you outline an employee's pay in their contract, this would be an express term. Let's take a look at some other instances where they occur.

Job title and working hours

A common example of an express term is your employee's job title and working hours. For example, if you have set working hours that employees need to comply with, this would need to be stated in your employment contract.

Sick pay

Another example of an express term in a contract is sick pay. For instance, you would need to detail whether or not your business provides contractual sick pay, or if employees would only receive Statutory Sick Pay.

Collective agreements

Collective agreements are also referred to as express terms in an employment contract. For example, a collective agreement might be your employee's working conditions which are already negotiated by a trade union.

Do express terms have to be put in writing to be legally binding?

No, express terms generally do not have to be put in writing to be legally binding. However, this depends on the type of term it is.

For example, under employment law, companies have to provide a written statement of particulars to new hires. This is a form employers are legally required to share with their staff when hiring them. The conditions within this statement would be express terms.

What are the advantages of using express terms in a contract?

There are several advantages of using express terms in an employment contract. For example, they're fairly easy to understand and comply with. Let's explore some other advantages of using these specific terms.

Easier to enforce

Express terms are easier to enforce because each party has specifically stated and acknowledged them. As such, both parties will likely understand that they are bound by the terms. And if they breach them, it will have legal consequences, such as employees raising an employment tribunal claim against you.

Provides peace of mind

Express terms of a contract also provide peace of mind for both parties because they're legally binding. Meaning, you and your employee will have to comply with them, or you could face legal repercussions, such as hefty fines to an employment tribunal.

Employees understand your requirements

Express terms outline the conditions of a new hire's employment, which means you can request certain items to ensure they succeed in your business. Consequently, it reinforces what your employee expects of you as soon as they join your company.

What happens if you breach an express term in an employment contract?

If you breach an express term in an employment contract, your employee could raise a breach of contract claim against you at a tribunal.

At a tribunal, the compensation awarded to an employee is capped at £25,000. But there is no limit when making claims to civil courts.

What happens if an express term has more than one meaning?

If an express term has more than one meaning, in most cases the court will uphold the meaning that least favours the party who drafted the contract.

For example, a staff member is entitled to more holidays after many years of service. If your employment contract is too ambiguous in defining this, the court will uphold the interpretation of the other party (your employee).

Get expert advice on express terms from Peninsula

As an employer, it's crucial you comply with the express terms of your employment contracts. If you don't you risk breaching them, which can have serious consequences for your company.

This includes staff raising breach of contract claims against you to an employment tribunal. Consequently, your business might experience financial loss and reputational damage.

Peninsula offers expert advice on the express terms of a contract or written agreement. Our teams offer 24/7 HR advice which is available 365 days a year. We take care of everything when you work with our HR experts.

Want to find out more? Contact us on 0800 029 4377 and book a free consultation with an HR consultant today.