Contracts of employment can be a minefield for employers. Fear not! Our essential checklist will guide you through the crucial elements, ensuring peace of mind and legal compliance. Businesses need to regard contracts of employment as the backbone of the employer-employee relationship, setting out the rights and obligations of both parties. Whatever the industry, UK employers need to understand the importance of well-drafted and legally compliant contracts. In this blog, we will provide you with a comprehensive checklist to help you navigate the complexities of creating contracts that protect your business interests, while adhering to legal requirements. However, it is important to note that seeking professional advice from an HR professional is invaluable in ensuring accuracy and compliance. So let’s delve into the essential elements of our contracts of employment checklist.
1. Clear job description and terms of employment Start by clearly defining the job title duties and responsibilities of the employee. Outline the terms of employment, including the employment type (full-time, part-time or fixed-term), working hours, and the start date. Ensure that the contract accurately reflects the agreed-upon terms and conditions.
2. Statutory information Include all the statutory information required by law, such as the employer’s and employee’s names and addresses, the place of work and the applicable notice periods. Mention the hours of work and any entitlement to paid leave, including holidays and sick leave, in accordance with legal requirements.
3. Salary and benefits Specify the employee’s salary, payment frequency and any additional benefits or allowances provided. Clarify the process for salary reviews, bonuses and performance-related incentives. Remember to mention any financial deductions that will be made, such as tax and National Insurance contributions.
4. Termination and dispute resolution Contracts of employment should detail the termination provisions, including notice periods for both parties. It is important to mention the disciplinary and grievance procedures that will be followed in case of disputes or issues. This ensures a fair and transparent process for resolving conflicts, reducing the risk of grievance claims from the employee.
5. Confidentiality and intellectual property Include clauses on confidentiality to protect your business’s sensitive information. Define the employee’s responsibilities regarding the handling of confidential data and any intellectual property rights. This safeguards your company’s proprietary information and prevents unauthorised use or disclosure.
6. Restrictive covenants Consider including restrictive covenants in contracts of employment to protect your business interests. These clauses restrict employees from engaging in certain activities, such as competing with your business or soliciting clients or employees after leaving the company. Seek professional advice to ensure these clauses are enforceable and reasonable.
Need help with contracts of employment? Creating contracts of employment that cover all the necessary aspects is crucial for UK employers. It not only establishes clear expectations for employees, but also protects your business interests. While this checklist provides a solid foundation, consulting with an HR professional is highly recommended to ensure compliance with ever-changing employment laws and regulations.
JT HRConsultancy is an established HR services company based in Bedfordshire with clients across the UK. If you need help of advice on an employment issue, call me on 07715 026128 or email jo@jt-hrconsultancy.com
