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by Rebecca Lister |
By law, employers have to provide employees with a written statement of particulars, commonly known as an employment contract. This is a legally binding agreement between the employer and employee setting out the contract terms and conditions of employment.
Employment contracts form the foundation of the working relationship between employer and employee, detailing key terms to ensure clarity and legal compliance. In addition to the statutory requirements, employers often include extra provisions to reflect company-specific policies and practices.
The written statement is made of two parts, the main document (which is also referred to as a principal statement) and a wider written statement. This structure ensures that the most critical employment terms are clearly outlined upfront, while additional details covering broader employment policies and procedures are provided separately to maintain clarity and avoid overwhelming the employee with information all at once.
Employees must have been given their principal statement by their first day of employment, with the wider statement needing to be provided within the first two months from this start date.
Employment contracts must include certain information by law, or the employer could face an award against them for breach of contract, made by the employment tribunal, to pay an employee.
By law, employers should look to include the following in their written/principal statement of particulars:
The principal statement can also specify arrangements for flexible working, probation extension policies, and reimbursement procedures for business-related expenses. Information on professional development opportunities and criteria for promotions may also be detailed to support career progression.
Employers must also provide employees or workers with the following information:
In addition to the above, employers may also choose to include details on voluntary benefits such as employee assistance programs, access to wellness and wellbeing resources, or company-specific perks like staff discounts and travel allowances. Including this information can enhance employee engagement and provide a clearer picture of the full range of support available.
Clear guidelines on how to access these additional resources and who to contact for assistance should also be outlined to ensure employees can make the most of these offerings. This added transparency fosters a positive working environment and reinforces the employer’s commitment to staff welfare.
Employment contracts may need to be updated over time due to changes in business needs, legal requirements, or employee roles. Employers should communicate any proposed amendments clearly and, where necessary, consult with employees to gain their agreement.
Key examples of amendments may include changes to working hours, job responsibilities, or salary adjustments. It’s important to document these changes formally and provide updated written statements to reflect the new terms.
Failure to handle contract variations properly can lead to disputes or claims of unfair treatment. Ensuring transparency and fairness in this process helps maintain trust and prevent misunderstandings.
Here at Eclipse HR, we are best positioned to help you navigate the hiring process. Whether providing you with employment contracts, employment policies, employee handbook templates, or reviewing the documents you currently have in place.
Our expert HR consultants have years of experience in dealing with such matters across a variety of different sectors and keep up to date on any forthcoming employment law changes that may affect your obligations as an employer.
If you do require any support or guidance or wish to discuss what is an employment contract further, feel free to get in touch.
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