Action list - Employment contracts

 

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Action list - Employment contracts

  1. Look for samples of written statements and contracts: contact us, or ask similar businesses you know.
  2. Decide the basic terms for the written statement: for example, pay, working hours, holidays and notice periods.
  3. Decide whether the job is permanent and whether you want to include a probationary period.
  4. Consider which areas may need flexibility: for example, the employee’s job title and role, and place of work.
  5. Clarify any areas which you want to be non-contractual, such as discretionary bonuses.
  6. Draw up the written statement; ensure that you have included all the legally required information.
  7. Ensure that any other documents you refer to in the written statement are readily accessible (eg disciplinary and grievance procedures and pension schemes).
  8. Review the job and any problems you have experienced with employees and
    ex-employees in the past.
  9. Decide whether there are any requirements for the employee (eg to hold or achieve a professional qualification or a driving licence).
  10. Identify any other concerns: for example, confidentiality, intellectual property or the potential for ex-employees to compete with you.
  11. Draw up clear instructions to us; include the basic terms and extra clauses to cover the additional contract elements you want to include.
  12. We will ensure that the contract is not discriminatory, does not override employee’s statutory rights and is legally enforceable.
  13. Ask us for legal advice on any issue you are not sure about, particularly if the contract attempts to restrict employees after they leave your employment.
  14. Give each employee their employment contract within two months of commencing their employment.
  15. Explain the contract and its significance to the employee; agree the contract, and ask the employee to sign a copy.
Cardinal Rules

Do:

  • find out the legal requirements for the written statement.
  • identify key issues and areas of concern
  • ensure that the contract is clear and achieves your objectives
  • take legal advice
  • get the employee to agree and sign the written contract

Don’t:

  • restrict your flexibility
  • put it off until later