We draft and give advice about employment contracts, staff handbooks, and employment procedures. We are Cambridge employment solicitors. Call Cambridge Legal on 01223 776200 or email enquiries@cambridgelegal.co.uk

Written employment contracts

If employees do not have well written employment contracts, employers risk later misunderstandings and financial penalties in employment tribunal. Uncertainty over employment terms is a major cause of dispute and employment litigation. Even if employees already have written contracts, these may not be well drafted, cover the latest legal requirements, or address the employer’s business needs.

An employer can ensure that confidential information about its business is protected by suitable terms. Additionally, there is the risk that employees may leave to set up in competition with the business, work for a competitor, and take the employer’s clients, customers, suppliers and staff. It is generally prudent to include the protection of restrictive covenants (post-termination provisions) in written employment contracts.

All employees have an employment contract with their employer. This is true whether or not the contract is in writing. Simply paying a salary in exchange for work may be sufficient to create an emplyment contract. Apart from the danger of breaching the Employment Rights Act 1996, one danger from not providing written employment contracts is that employers have less control over employees. It’s much easier to set out contractual terms in writing. It gets the employment relationship off to a good start by ensuring parties understand what is required. That’s particularly important as both parties must comply with the contract until it ends or until the terms are changed. An existing employment contract can be varied only by the agreement of both parties. However, a well drafted contract can give more flexibility for the employer to vary contractual terms.

Without written contractual terms the parties may be bound by what an employment tribunal determines is appropriate, whether they like it or not.

Isn’t it time you spoke to specialist employment solicitors?

Written statement of employment particulars

From 6 April 2020 employers have been required, as a minimum, to give employees and workers a ‘written statement of employment particulars’ on or before the start of their employment or engagement. Previously, employers had two months within which to comply. A written statement is not an employment contract, but will include the main conditions of employment or engagement. The provision of a written employment contract containing the required information will also suffice. The minimum requirement of a written statement ensures that employees and workers have the essential information at the outset.

As employment solicitors, Cambridge Legal can produce the written statement or employment contract for you.

A written statement can comprise more than one document. It’s possible to give employees different sections of their statement at different times. If so, one of the documents, called the ‘principal statement’ must include:

the business’s name
the employee’s name, job title or a description of work and start date
if a previous job counts towards a period of continuous employment, the date the period started
how much and how often an employee will get paid
hours of work (and if employees will have to work Sundays, nights or overtime)
holiday entitlement (and if that includes public holidays)
where an employee will be working and whether they might have to relocate
if an employee works in different places, where these will be and the employer’s address

As well as the principal statement, a written statement must also contain information about:

how long a temporary job is expected to last
the end date of a fixed-term contract
notice periods
collective agreements (negotiated agreements between employers and trade unions or staff associations)
pensions
who to go to with a grievance
how to complain about how a grievance is handled
how to complain about a disciplinary or dismissal decision

The written statement does not need to detail the following (but it must say where the information can be found):

sick pay and procedures
pensions and pension schemes
disciplinary and dismissal procedures
grievance procedures

Since 6 April 2020 employers have been required to provide the following additional particulars:

the days of the week the employee or worker is required to work
whether the working hours may be variable and how any variation will be determined
any paid leave (other than paid holiday that already has to be provided) to which the employee is entitled (e.g. maternity or family leave)
details of all remuneration and benefits (above base pay)
any probationary period and the conditions relating to it, and
any training which is mandatory and/or must be paid for by the worker or employee

Typically, some details are set out in a staff handbook, which Cambridge Legal can produce for you.

Changes to the employment contract

Any changes to an employee’s employment contract, whether amending one or more terms, must be notified in writing to the employee within one month of the date of the change. Damages are awarded by employment tribunals against employers who do not comply.

Penalties and risk

The lack of certainty and security when employees do not have written employment contracts is dangerous for employers. It leads to employment tribunal claims and awards of compensation against employers. Employment Judges condemn employers who fail to provide written employment contracts as well as breaches of the ACAS Code where the employer has not issued and followed written grievance or disciplinary procedures.

Compensation for not providing a satisfactory written employment contract or a statement of terms and conditions is the equivalent of 2 to 4 weeks’ salary, at the employment tribunal’s discretion. That will be in addition to compensation for the employee’s other complaints.

Breach of the ACAS Code entitles an employment tribunal to increase the total compensation for all claims against employers by up to 25%. For further information about the ACAS Code see the articles on this website “Grievances at Work” and “Disciplinary Action”. If you do not have grievance and disciplinary procedures that comply with the ACAS Code, we can draft these for you at minimal cost. The best drafting of employment contracts and related documentation is done by specialist employment solicitors.

“A verbal contract isn’t worth the paper it is written on“. Sam Goldwyn

As specialist employment solicitors in Cambridge we can draft and advise on employment contracts, staff handbooks, grievance and disciplinary procedures and related matters. Call Cambridge Legal on 01223 776200 or email enquiries@cambridgelegal.co.uk