Contracts of Employment and Other Documentation

Understanding Contracts of Employment

Contracts of employment are compulsory legal agreements between an employer and an employee.
This contract outlines the obligations, duties, and rights of both the employer and employee.
A contract commences once the employee accepts the job offer, not necessarily when work starts.
Contracts can be both written or verbal but it is best practice to have a written contract.

Every contract must state certain specific terms, known as express terms, that cover job title, salary, working hours and location.
Implied terms are not stated in the contract but are automatically part of the agreement. These may include duty of care and fidelity.
Sometimes, contracts will contain ‘subject to’ clauses, such as ‘subject to satisfactory references’.
Flexibility clauses in a contract allow an employer to make certain changes, like alter working hours.

Typically, changes to contracts must be agreed upon by both employer and employee.
If an employer unilaterally changes the contract without the employee’s consent, this could potentially be a breach of contract.
Employees can resign in response to a breach and may be able to claim for constructive dismissal.

Aside from contracts, other essential employment documents might include job descriptions, person specifications, and staff handbooks.
Job descriptions define an employee’s role, responsibilities, and duties.
Person specifications outline the necessary characteristics, skills, qualifications a candidate should possess.
Staff handbooks usually provide information like company rules, procedures, and policies.

Termination of contracts can occur through resignation, dismissal, or redundancy.
The contract may also end upon the completion of a fixed-term contract or when the employee reaches retirement age.
Both parties should adhere to the terms of the contract regarding notice periods to prevent potential disputes.
Wrongful termination can result in a claim for unfair dismissal in an Employment Tribunal.