Employment contracts are an agreement made between you (the employer) and your staff. A robust employment contract should outline the working relationship between the individual and your business as well as highlight their working rights, responsibilities in the role and the hours an employee works. Furthermore it should also clearly indicate their salary as well...
Read Time: 6 Minutes
Employment contracts are an agreement made between you (the employer) and your staff. A robust employment contract should outline the working relationship between the individual and your business as well as highlight their working rights, responsibilities in the role and the hours an employee works. Furthermore it should also clearly indicate their salary as well as any entitlements like holiday and any additional working benefits.
The contract should be written with both the signatures of the employer and the employee (although verbal contracts may still hold validity). Depending on the contract, type of employment and status, they may still have an entitlement to rights like annual leave, and payment for work.
Ensure you understand your legal obligations as an employer when it comes to contracts, and avoid costly legal litigation. Call Employer Advice today on 0800 470 3529 and talk to one of our expert employment law advisors.
There are numerous types of employment contracts reflecting differences in the types of employment. Outline below are some common examples of popular types of contracts and what they entail.
A full time employment contract is the most common type of working contract. More often than not, these are permanent (or temporary with the intent to become permanent). Full time employees typically work over 35 hours per week although there is no number that is set in stone regarding this.
Part time employment contracts are given to employees working fewer hours than a full time employee (less than 35 hours). The terms and conditions outlined in a part time contract are not that dissimilar to full time contract, as in they outline the employee’s scheduled hours, remuneration and benefits and entitlements.
Fixed term contracts are binding for a specific amount of time which is usually agreed upon in advance. Some types of fixed term contracts come with a start and end date whilst others are contracted to the completion of specific duties or tasks, for example project work.
Whilst the contract is set in place for a fixed length of time, a fixed term contract can often be a precursor to a longer term position. Those employed under these terms have the same rights as any other employee working under a permanent contract. Entitlements like holiday however, are likely to be worked out pro-rata, depending on the length of the contract.
Agency workers will typically have their contracts agreed by a recruitment or employment agency, these are usually temporary and determined by the length of the employer’s demand for the required work.
The agency is responsible for ensuring employee rights are protected. National insurance contributions and SSP fall in the remit of the employer and not the agency.
Once the worker has been in continuous employment for over 12 weeks then they are entitled to the same rights as permanent members of the company, this includes pay, rest breaks and annual leave. Night work and working time are also covered under this.
In addition to the above, after the 12 week period an employer must provide an agency worker with the terms and conditions of their business, to ensure the worker receives equal treatment.
Unlike a permanent contract a casual contract does not offer fixed hours each week or month. The number of guaranteed hours are granted by the employer and then distributed accordingly, any additional hours made available are at the employee’s discretion whether they accept them or not.
Holiday is accrued based on the number of hours worked, and the employee is also entitled to SSP and other employment benefits.
Typically zero hours contracts are casual contracts that offer zero guaranteed hours or pay, in reality this essentially means the worker is permanently on call. The employer does not have to offer work and the employee does not have to accept work when offered.
There are set to be changes to these types of contracts under the Government’s Employment
Rights Bill. some of the proposed changes include:
Under a zero hours contract the employer is still responsible for the workers health and safety
These are specifically designed for executive directors and cover all the usual employment terms and conditions, with some additional terms and specific reference regarding to directorial duties. This type of contract should be board approved and should be subject to statutory and regulatory disclosure.
Compensation for loss of office, as well as requirements for notice periods should also be disclosed. Before a director starts work you should always seek legal advice.
Contact Employer Advice for assistance with all your worker contracts and documentation. Ensure compliance under UK employment legislation and avoid costly legal litigation.
Call 0800 470 3529.