As a guideline Actionline has prepared a list of the terms which should be included in a contract between employer and employee:
Names of the employer and employee
The date employment began.
The date upon which the employee’s period of continuous employment began. This should take into account any employment with a previous employer which counts towards that period.
Rates of payment and method of calculating payment.
Whether payment is made weekly, monthly or at some other interval.
Hours of work including overtime and whether overtime is paid.
Entitlement on holiday and holiday pay and how holiday pay will be calculated if the employment ends.
Conditions relating to incapacity for work and any sick pay provisions.
Any terms relating to pensions and pension schemes.
The periods of notice required by both parties to terminate the employment.
The title of the employee’s job or a brief description of the work.
If the employment is temporary the expected period of employment should be stated, or if fixed term, the date of termination should be stated.
The place of work, the employer’s address and the places of work where the employee may be required or permitted to work.
Details of any collective agreements which may affect the terms of employment.
Details of any disciplinary rules including:
a) The name of the person to whom the employee can apply in the event of a grievance or dissatisfaction with a disciplinary decision.
b) how the application is made
c) an explanation of what further steps could be taken if an employee wishes to appeal against a disciplinary decision.
When must the written statement be given?
Within two months of taking on the employee. If at an earlier stage the employee is required to work abroad for a period of more than one month, the statement must be given before he or she leaves.
Can the written statement simply refer the employee to other sources of information, such as a notice board or handbook?
The statement can refer the employee to other documents for details of pensions, sickness entitlement and disciplinary rules, provided that the documents are easily accessible. It can also refer the employee to the law or to an easily accessible collective agreement for details of notice entitlement. All other details must be given in the statement itself.
What if changes are made to the terms and conditions covered in the statement?
The employee must be given a written statement of any changes as soon as possible, and no later than a month after they are made.
What if the employee is not given a written statement to which they are entitled?
Employees who think they have been denied a written statement to which they are entitled may refer the matter to an Industrial Tribunal. They can also do this at any time up to three months after their employment ends. The Tribunal will decide what particulars they ought to have been given.
Is there anyone not covered by these rules?
Yes. The rules do not cover:
Anyone taken on for less than one month
Self-employed people, independent contractors and some trainees
Most people working outside Great Britain
Certain other groups, including some working at sea and some public servants.
The Advisory, Conciliation and Arbitration Service (ACAS) provides information and guidance on a wide range of employment and industrial relations matters. The service is free, confidential and impartial. ACAS’s telephone number is in the telephone directory.
MODEL CONTRACT
To give you an example, Actionline has set out the basic terms of a contract of employment in the form it should take.
STATEMENT OF EMPLOYMENT
Employment Protection (Consolidation) Act 1978, Employment Act 1982, Trade Union Reform and Employment Rights Act 1993 and Employment Rights Act 1996.
TO ……………………………………………………………………………
This company gives you formal notice of engagement and details of terms and conditions of employment. Please refer to the Staff Handbook of which this forms part.
Your employment started on……………………………………….
Your employment is permanent/temporary for a period of … weeks (delete as appropriate)
Your employment is with ………………………. of ……………………..(address)
Your employment with ……………….. from ……………… to………………. (dates) counts as part of your continuous employment with this company (delete if not applicable)
You are employed as a …………………………………. as detailed in your job description
Your place of work is …………………………………… There are no collective agreements which affect your terms and conditions OR Your terms and conditions are subject to the following collective agreements: (specify) (delete as appropriate)
You are not required to work outside the United Kingdom
Your rate of pay is £………. per hour/week, paid weekly/monthly. Any alterations to this rate will be indicated on the payment slip. The rate of pay meets the requirements of the National Minimum Wage Regulations, which currently specify a minimum wage of £4.20 per hour for those aged 22 and over, and £3.60 per hour for those aged 18 to 21.
Your hours of work are ………………………………………….
You are entitled to ………. hours/weeks paid annual leave.
You will be immediately responsible to ……………………………
Then continue to include details of sick pay provisions, pension schemes, periods of notice required by both parties to terminate the employment and details of any disciplinary rules. The statement can refer the employee to other documents such as the Staff Handbook provided it is easily accessible.
