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Employment Contract

Employment Contract Solicitors

Employment contracts are important documents that define the relationship between an employer and employee, outlining duties, rights, and obligations.

A well-drafted employment contract can prevent disputes, protect your business interests, and ensure compliance with ever-changing employment laws. However, creating these contracts requires a deep understanding of legal requirements and best practices, which is why enlisting the help of a professional employment lawyer is essential.

At Lawhive, we offer a streamlined and cost-effective solution for all your employment contract needs, whether you're a business owner looking to draft your first employment contract, seeking to update your existing contracts, or need help negotiating the terms of your employment.

Here's why choosing Lawhive is the smart choice:

• Up to 60% cheaper than high-street firms

• Fixed price quotes, no hidden fees

• Fully regulated and vetted employment lawyers.

To get started, contact us today for a free quote.

What is an employment contract?

An employment contract is a formal agreement between an employer and an employee that outlines the terms and conditions of employment. It lays the foundation of the working relationship, detailing everything from job responsibilities and salary to working hours and benefits.

In the UK, employment contracts are a legal requirement. Employers must give employees a written statement of particulars within two months of starting work.

What should be included in an employment contract?

Offer and acceptance

The first step in forming an employment contract is the offer. This is when an employer expresses a willingness to hire an employee under specific terms.

For the contract to be legally binding, the employee must accept the offer.

Usually, this process starts with an offer letter.

Consideration

Consideration refers to something of value that the employee receives in exchange for agreeing to the employment terms. This could be:

• Payment of salary or wages for the work performed;

• Additional perks like health insurance or bonuses;

• Promises, like the employer providing training or agreeing not to impose certain restrictions on the employee.

For a contract to be enforceable, the consideration must be fair and of some value.

Terms and conditions

The terms and conditions of an employment contract set out the rules that govern the employment relationship. These include:

Express terms

Express terms are specific details written into the contract, such as:

• The duties and responsibilities of the employee;

• The amount the employee will be paid and how often;

• The expected hours of work and any overtime policies

• The amount of annual leave the employee is entitled to.

Implied terms

Implied terms are not specifically written down but are understood to be part of the contract. They include:

• The employer's responsibility to provide a safe working environment;

• The employer's duty to pay the agreed wages;

• The employee's duty to act in the best interests of the employer.

Incorporated terms

Incorporated terms are clauses that are brought into the employment contract by reference to another document like the employee handbook or company policies.

This means that although the terms themselves are not written out in full in the employment contract, they are still considered part of the agreement because the contract references them.

For incorporated terms to be enforceable, however, employees must have reasonable access to the referenced documents. That is, they should be readily available, either in print or electronically, and employees should be made aware of their content and any updates.

Statutory terms

Statutory terms are included in an employment contract by law. They provide basic rights and protections for employees, like:

• Sick pay

• Annual leave

• Maternity and paternity leave

• Health and Safety

If you need help with drafting or reviewing employment contracts, Lawhive is here to help.

Our expert network of employment law solicitors provides tailored advice and support, ensuring your contracts are legally compliant and suited to your business needs. Contact us today to get started.

Types of employment contracts

There are different types of employment contracts, each with its own set of terms and conditions.

Essential clauses in employment contracts

The clauses every employment contract should have are:

• Job title and duties;

• Salary and benefits

• Working hours and conditions for overtime (including break times and flexible working options);

• Holiday entitlement;

• Sick leave and pay;

• Confidentiality and non-disclosure;

• Termination and notice periods;

• Disciplinary and grievance procedures.

Legal requirements and considerations for employment contracts

Creating an employment contract involves more than just writing down terms and conditions; it requires a thorough understanding of legal requirements and considerations.

Written statement of employment particulars

In the UK, employers are legally required to provide employees with a written statement of employment particulars within two months of starting work.

This document must include fundamental terms of employment such as:

• Job title and description

• Start date and continous employment date

• Salary and payment frequency

• Working hours

• Holiday entitlement

• Notice periods.

Changes to employment contracts

It's not uncommon for the terms of employment contracts to change over time. But, any amendments must be agreed on by both parties.

Employers must provide written notification of any changes and, ideally, get the employee's consent to ensure the changes are legally binding and to avoid disputes.

Statutory rights vs. contractual rights

Employees have both statutory rights and contractual rights.

Statutory rights are granted by law and include things like minimum wage, holiday pay, sick pay, maternity and paternity leave, and protection against unfair dismissal.

Contractual rights are agreed upon between the employer and employee and offer more generous terms than statutory rights but can't offer less.

Compliance with employment law

Employment contracts must comply with various legal regulations, including the Employment Rights Act 1996.

This Act covers key aspects such as unfair dismissal, redundancy, and employment particulars.

Other important regulations include:

• Working Time Regulations

• Equality Act 2010

• Health and Safety at Work Act 1974

Whether you're an employer looking to draft a robust employment contract or an employee seeking to understand your contractual rights, contact us today.

Negotiating employment contracts

Negotiating employment contracts can be daunting, but with the right approach, it can lead to a mutually beneficial agreement for both employers and employees.

Best practices for employers

As an employer, negotiating an employment contract requires clarity, fairness, and transparency.

Here are some best practices:

1. Clearly outline the job role, responsibilities, and expectations;

2. Research industry standards to make sure your offer is competitive;

3. Be willing to listen to the employee's concerns and requests;

4. Be prepared to compromise to reach a fair agreement;

5. Make sure all agreed terms are documented in the employment contract.

Top tips for negotiating employment contracts as an employee

• Know your worth by researching the market rate for your role and experience level;

• If anything about the job role, responsibilities, and expectations are unclear, ask questions;

• Look beyond the salary at other benefits like bonuses and work-life balance.

• Approach negotiations with a positive and respective attitude;

• Have a solicitor review your employment contract before signing.

At Lawhive, our network of experienced employment solicitors provide expert guidance on all aspects of employment contracts, from drafting to negotiation at a fraction of the cost of high-street firms.

Contact us today for legal support in employment contract negotiations.

How often should employers review and update employment contracts?

Employment contracts shouldn't be static documents. It's important to review and update them regularly to ensure they remain compliant with employment law and reflect any changes in the employment relationship.

It may be necessary to review and update employment contracts:

• If an employee's responsibilities change;

• If there are changes to salaries, benefits, or bonuses;

• If new employment laws are introduced.

What happens if an employment contract is breached?

A breach of an employment contract can take various forms, such as:

• Non-payment of wages

• Failure to provide agreed working conditions

• Violation of confidentiality

• Unfair dismissal.

In the first instance, a breach of an employment contract should be addressed directly as soon as possible. This can often resolve the issue without further action.

If the breach can't be resolved through direct communication or even mediation, you may need to seek legal action. This could involve:

• Employees filing a formal grievance;

• Employees taking their cases to an employment tribunal;

• Either party pursuing a breach of contract claim in civil court.

Potential outcomes of a breach of an employment contract depend on the nature and severity of the breach. They could include:

• The party that suffered the breach being awarded compensation;

• Reinstatement for an employee if they were unjustly dismissed;

• An injunction to prevent further breaches, such as enforcing a non-compete clause.

Do employment contracts have to be in writing?

In the UK, employment contracts don't have to be in writing to be legally binding, however, employers do have to provide employees with a written statement of employment particulars within two months of starting work.

This means that employment contracts can be verbal, and formed through discussions and agreements. But they can be difficult to prove and enforce.

As such, it's highly advisable to have a written employment contract in place.

Why choose Lawhive for your employment contracts?

At Lawhive, we make the process of drafting, reviewing, and managing employment contracts simple and affordable.

When you choose us, you get top-quality legal services at a fraction of the cost, with no hidden fees. Plus, you can work with trusted experts in employment law.

Whether you need to draft a new employment contract or review an existing one, we are here to help. Contact us today for a free case evaluation and quote.