|Employment Contract |
Whether you are seeking employment or want to hire an employee, you will need an employment contract. This article will guide you how you can protect your interests.
An agreement entered into between an employer and an employee at the time the employee is hired that outlines the exact nature of their business relationship, specifically what compensation the employee will receive in exchange for specific work performed.
The employment contract is made as soon as you accept a job offer. If you start work it will show that you accepted the job on the terms offered by the employer, even if you don’t know what they are. Having a written contract could cut out disputes with your employer at a later date, and will help you understand your employment rights.
Contract for Services
A contract to provide services is an agreement between you and another person to undertake some work for them (for example paints their house). You do not become an ‘employee’ for this person - you just provide them with a service.
If you are a temporary agency worker you may be contracted with your agency under a 'contract for services'. Your agency, as an employment business, will be obliged to provide you with a written contract.
Written Statement of Employment
An employment contract exists as soon as an employee starts working for you. An employment contract is enforceable by law. It can be a verbal agreement and doesn’t have to be written down. If the contract is a verbal one, the employee is entitled to a written statement setting out the main elements of the job. An employee is entitled the written statement within two months of their start date.
What is included in a Written Statement
• The legal company name of the employer.
• The legal name of the employee.
• The date the current employment began.
• The employee’s pay, or how it is calculated, and whether it is paid weekly or monthly.
• The employee’s hours of work.
• The employee’s holiday entitlement and holiday pay.
• Job title or a brief description of the work.
• The address of the employee’s place of work.
• Terms and conditions relating to sickness, injury and sick pay.
• The period of employment – permanent, temporary, fixed term.
• Notice periods.
• Collective agreements with trade unions.
• The employee’s pension entitlement
• Dismissal, disciplinary and grievance procedures.
Employment Contract Terms
The terms of an employment contract set out what you and your employer can expect of each other. There are several different types
Express Contractual Terms
Express terms in an employment contract are those that are explicitly agreed between you and your employer and can include:
• amount of wages, including any overtime or bonus pay
• hours of work, including overtime hours (there is a legal limit for most employees on the maximum number of hours they can work per week)
• holiday pay, including how much time off you are entitled to (nearly all workers are entitled by law to 24 days' paid holiday - they may be entitled to more under their contract. Part-time workers are entitled to a pro rata amount)
• sick pay
• redundancy pay
• how much warning (notice) the employer must give you if you are dismissed.
• and provide work.
Implied Terms of an Employment Contract
Terms are implied into a contract for a number of reasons.
Implied terms include:
• the duty of the employer to provide a secure, safe and healthy environment for the employee
• the employee's duty of honesty and loyal service
• an implied duty of mutual trust and confidence between you and the employee
• a term too obvious to need stating, e.g. that your employee will not steal from you
• any terms that are necessary to make the contract workable, e.g. that someone employed as a driver will have a valid driving licence
The law also imposes some terms automatically, such as the right to paid holidays, the right to receive the national minimum wage and the right not to be unlawfully discriminated against.
What Goes in an Employee Agreement
In addition to clearly describing what the employee is going to do for you (the job) and what you are going to do for the employee (the salary), the contract can -- if you want it to -- address a number of other issues, including:
• duration of the job (one year, two years, or indefinitely)
• information about the employee's responsibilities
• what benefits (such as health insurance, vacation leave, disability leave, and so on) the employee will receive
• grounds for termination
• limitations on the employee's ability to compete with your business once the employee leaves
• protection of your trade secrets and client lists
• your ownership of the employee's work product (for example, if the employee writes books or invents gadgets for you), or
• a method for resolving any disputes.
Termination of an Employment Contract
Both parties to the employment contract may terminate it by giving due notice. Whilst there is then little to restrain the employee from terminating the contract, the employer must take account of unfair dismissal and discrimination legislation before proceeding. To enable an employee to bring a claim for unfair dismissal, 12 months continuous employment at the date of termination must usually have been completed. No service requirement applies where the case involves a claim of discrimination.
Termination by the Employee (Resignation)
The most common case of individuals terminating their employment contract is when they resign to take up alternative employment; employees are generally free to terminate their contracts of employment for any reason provided they give the due notice. If the employee leaves without giving due notice this constitutes breach of contract.
Termination by the Employer (Dismissal)
The employer must not dismiss a valid employment contract without proper and weighty reason.
An employer and employee can mutually agree to terminate a contract. To be acceptable mutually agreed terminations must contain no suggestion of any pressure from the employer e.g. not "resign or be dismissed”. Where a mutually agreed termination occurs without such pressure, an employee cannot subsequently claim unfair dismissal.
Employment Contract Templates
If you are looking for Employment Contract Template, here you will find very well designed and professionally created contract template. They are ready to used, just what you have to do is, placed your terms and conditions whether you are software engineer, roofer, builder, full-time or part-time bar staff, our Employment Contract Templates are easy to customize to your business requirements.
All the templates of Net Lawman have been drafted by a team of Solicitors and Barristers who are expert in the field of employment.
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All Net Lawman documents are written in plain English, come with explanatory notes on best use and are updated from time-to-time as new law requires.
Net Lawman goal is to provide best quality, cost effective, easily accessible legal services to the World. We provides best collection of legal documents in plain English on the Internet.