Contracts of Employment

Section 1: Understanding Contracts of Employment

  • A contract of employment is a legally binding document between an employer and employee.
  • This contract lays out the terms and conditions of employment, including salaries, working hours, and responsibilities.
  • All employees, either full time, part time or temporary, have a contract with their employer.

Section 2: Elements of a Contract of Employment

  • A contract of employment typically includes the job title, job description, and workplace location.
  • The contract details the employee’s rights, duties, and responsibilities.
  • It will state the agreed wage or salary, working hours, holiday and sick pay entitlements.
  • The contract may also outline the employer’s disciplinary and grievance procedures.

Section 3: Responsibilities Under a Contract of Employment

  • The contract of employment requires both parties to fulfill their obligations. For instance, an employee must perform their job to the best of their ability while the employer must pay the agreed wage on time.
  • Both parties must maintain a duty of trust and confidence, meaning they should not act in a way that destroys the working relationship.
  • The employer is responsible for ensuring a safe and healthy work environment for the employee.

Section 4: Changes to Contracts of Employment

  • If an employer wishes to change the terms of a contract, they must usually get the employee’s agreement.
  • Minor changes might be made through a process known as ‘flexible working’, while major changes could require a completely new contract.
  • Failure to comply with the contract of employment can lead to breach of contract claims.

Section 5: Termination of Contract

  • Contracts of employment can be terminated by either party, but usually require a notice period.
  • Wrongful termination or unfair dismissal may lead to claims against the employer at an employment tribunal.
  • Upon termination, some contracts might include post-employment restrictions like non-disclosure agreements or restrictive covenants.

Section 6: Significance of Contracts of Employment

  • A contract of employment provides a clear understanding of what is expected from both parties, helping to prevent misunderstandings which could result in disputes or legal action.
  • It ensures a mutually agreed upon framework for employment, creating a stable and transparent working environment.
  • By outlining obligations, it provides a degree of security and certainty to both parties.