A Contract of Employment is the legally binding document setting out the express terms and conditions that form the relationship between the employee and employer. These rights are protected by legislation. Failure of either party to comply with a term of the contract constitutes a 'Breach of Contract', and can lead to a claim of wrongful or even constructive unfair dismissal.
Are contracts required by all staff? If you are engaging someone as an employee i.e. where you control the work they do, then a contract of employment clearly exists, irrespective of whether you put this writing! All employees have a right to have a copy of their contract within and certainly no later than 2 months from start of employment. Failure to comply could mean you run the risk of an application being made to a Tribunal who will then determine the terms that exist, and the outcome will be binding on the employer.
What is the statement of particulars? The term contract is interchangeable with statement of particulars. Certain other rights are incorporated into the contract, either through the custom and practice of what happens in reality or through statutory rights.
Our contracts are out of date and I would like to get them updated, and am particularly interested in adding a mobility clause. Can I do this? In short, where you intend to make changes to an existing contract you must have consulted with all staff first. If you have staff representatives or a recognised union then you must consult through them. Failure to follow the consultation process may result in employees resigning from the Company and seeking damages through a Tribunal for constructive unfair dismissal.
Can I put Company policy in the contract to avoid having to create a separate handbook? You can, BUT it is really important to understand that anything written into the employment contract will mean that you as the employer have no choice but to comply. Would you want to make bonus rewards an employee right? A staff handbook sets out the Company's policies and procedures as guidance but without incurring the same contractual obligations, and may therefore be updated by the Company as and when required.
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