Employment contract are used to validate a work agreement between an employer and a potential candidate.
There’s a lot to keep in mind when writing an employment contract, and it’s easy to get wrong if you don’t know the law.
You could face tribunal hearings if your contracts are poorly drafted. And any unlawful breaches can negatively impact your employee relations and lead to employment tribunals.
Download our free employment contract template and see how you can create fair and legal contracts for your staff.
What is an employment contract?
A contract of employment is a legally binding agreement between an employer and an employee. It's formed when a potential candidate accepts the offer of employment.
Contracts come in a variety of forms, ranging from verbal to written agreements. They outline things like work hours, salary, and job specifications.
Legally, you don't have to provide an employment contract to your staff. But you do need to provide everyone with a statement of terms. So, it's much easier to give out your job specs through an employment contract.
As of 6th April 2020, all employees and workers must be given a written Statement of Main Terms (SMTs) by the first day of their employment. The SMTs must contain specific information required by the Employment Rights Act (1996).
Examples of employment contract terms include but are not limited to the following:
- Rate of pay.
- Working hours.
- Holiday entitlements.
- Employment start date.
Why do I need an employment contract template?
Understandably, you may not find it simple to draft an employment contract. Especially not since the new requirements came into force. That’s why we have created an easy-to-use sample employment contract example for UK employers.
Making use of this template can help you avoid breaching your employees’ rights. Not providing an SMT, or providing one that does not contain all the required information is unlawful.
A breach may also occur if:
- There is a dispute over the accuracy of the terms contained within the statement.
- Written notification of any changes to the statement terms has not been provided.
You should be careful about failing to follow proper procedure when it comes to the handling of SMTs. An employee can bring forward an employment tribunal claim if you don’t follow the proper procedure, and you may have to pay them compensation.
How to draft an employment contract
You can create distinct employment contracts that suit your individual business needs. But there are many clauses you must include.
Here are a few steps to consider when creating an employment contract:
Present your business needs
You should outline the exact job requirements you're seeking for your business needs to be met.
- What type of contract you’re offering.
- Whether you're looking to hire a permanent or temporary employee?
- What types of expectations should be met.
- What benefits, entitlements, and compensation you can offer.
Outline the terms of the contract
Employers will have different requirements regarding working hours, contract length, and salary.
Whatever your conditions are, make sure that you follow legal regulations.
Use an employment contract template
There are a lot of ways you can wrong when creating your own contracts.
We’ve included a sample contract of employment template, which you can download for free. Save yourself the stress from writing your own and meeting all those legal standards.
Include standard employment clauses
Your employment contracts will stand as the final marker for all discussions and decisions.
Once the contract has been agreed to, neither party can implement terms outside of what is written. (Unless you both agree on altering the contract after).
Download our employment contract template for free
Following a strong procedure when building employment contracts can help you manage all legal requirements and employee benefits.
Which means you can minimise any chances of facing claims of unfair treatment. Leaving your employees content and clear on their contract terms.
Peninsula offers bespoke employment contract and documentation services. We can help introduce handbooks and policies that fit and meet all your business needs perfectly.
Our expert HR consultants ensure you comply with UK employment law and can offer help creating contracts that fit your business needs.
Book a free demo today to see just how easy it is to build employment contracts with our team. Give us a call on 0800 028 2420.
Disclaimer: This template is provided ‘as is’ and Peninsula Group excludes all representations, warranties, obligations and liabilities in relation to the template to the maximum extent permitted by law. Peninsula Group is not liable for any errors or omissions in the template and shall not be liable for any loss, injury or damage of any kind caused by its use. Use of the template is entirely at the risk of the User and should you wish to do so then independent legal advice should be sought before use. Use of the template will be deemed to constitute acceptance of the above terms.
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