Employment contracts
- Look for samples of written statements and contracts or ask similar businesses you know.
- Decide the basic terms for the written statement: for example, pay, working hours, holidays and notice periods.
- Decide whether the job is permanent and whether you want to include a probationary period.
- Consider which areas may need flexibility: for example, the employee's job title and role, and place of work.
- Clarify any areas which you want to be non-contractual, such as discretionary bonuses.
- Draw up the written statement; ensure that you have included all the legally required information.
- Ensure that any other documents you refer to in the written statement are readily accessible (eg disciplinary and grievance procedures and information on company pension schemes).
- Review the job and any problems you have experienced with employees and ex-employees in the past.
- Decide whether there are any requirements for the employee (eg to hold or achieve a professional qualification or a driving licence).
- Identify any other concerns: for example, confidentiality, intellectual property or the potential for ex-employees to compete with you.
- Draw up clear instructions to us; include the basic terms and extra clauses to cover the additional contract elements you want to include.
- We will ensure that the contract is not discriminatory, does not override employee's statutory rights and is legally enforceable.
- 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.
- Give each employee their employment contract within two months of commencing their employment.
- 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
