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Why You Need A Contract of Employment - With Free Download
Written by The Restaurant Doctor UK Team
Last Updated: 27th October 2023
Welcome to your one-stop destination for all your employment contract needs. Our free Contract of Employment Template is not just a document; it's a commitment towards better and more organised staff management.
What's on this page:
Why Do You Need a Contract of Employment?
A contract of employment outlines the working relationship between an employer and an employee. It communicates the company's rules, regulations, and the rights of the employee, acting as a cornerstone for your business's operations.
This contract ensures both you and your employee understand and agree to the employment conditions, rights, responsibilities, and duties, collectively known as the 'terms' of the contract. Once someone accepts a job offer, they have a contract with their employer, even if it's not written down.
What Should Be Included in a Contract of Employment?
Our template contains all the essential elements of an effective employment contract. Here's a breakdown of what you'll find in our comprehensive document:
Written Contract Terms
These are clearly defined and legally binding parts of the contract. They include, but are not limited to:
1. The employer's name and address.
2. The employee's name.
3. The start date of the employment.
4. The date that 'continuous employment' started for the employee (working for the same employer without a significant break).
5. Job title or a brief job description.
6. The places or addresses where the employee will work.
7. Details about pay including how often and when it will be delivered.
8. Working hours, including which days the employee must work and if and how their hours or days can change.
9. Holiday and holiday pay details, including an explanation of how it's calculated if the employee leaves.
10. The amount of sick leave and pay.
11. Any other paid leave.
12. Any other benefits, including non-contractual benefits such as childcare vouchers or company car schemes.
13. The notice period either side must give when employment ends.
14. The duration of the job (if it's temporary or fixed term).
15. Any probation period, including its conditions and how long it is.
16. If the employee will work abroad, and any terms that apply.
17. Training that must be completed by the employee, including training the employer does not pay for.
These are automatically a part of the contract even if not explicitly stated. Examples of these include:
1. Employees not stealing from their employer.
2. The employer providing a safe and secure working environment.
3. A legal requirement like the right to minimum paid holidays.
4. Something necessary to do the job like a driver having a valid license.
5. Something that’s been done regularly in a company over a long time like paying a Christmas bonus.
Terms That Can Be Provided Later
Some terms can be provided in instalments, no later than 2 months after the beginning of the employment. These include:
1. Pension arrangements.
2. Any terms and conditions that apply to other employees too (known as 'collective agreements').
3. Details of any training provided by the employer that is not compulsory.
4. Disciplinary rules and disciplinary and grievance procedures.
The Importance of a Contract of Employment
Providing Clarity and Protection
A contract of employment is a critical tool in defining the relationship between an employer and an employee. It provides clarity about the expectations and responsibilities on both sides. It's an essential part of your staff management toolkit, serving as a clear means of communicating your company rules, regulations, and the rights of the employees. With a well-crafted contract, you can avoid misunderstandings that can lead to disputes and legal issues down the line.
Ensuring Legal Compliance
An employment contract is not just about setting the terms of employment; it's also about ensuring compliance with the law. There are certain terms that are legally required to be in a contract, such as the right to a minimum paid holiday. Others, like providing a safe and secure working environment, are implied terms that are automatically a part of the contract even if not explicitly stated.
Maintaining Business Efficiency
Employment contracts also have a role to play in maintaining the efficiency and smooth operation of your business. By clearly defining working hours, pay, job roles, and other terms, you can ensure that your staff knows exactly what is required of them and when. This can help to prevent confusion and disputes and make it easier to manage your workforce effectively.
Free Contract of Employment Template Download
Our free template is customisable, allowing you to tailor it to your business needs. With this tool in your management arsenal, you are not just protecting your business but also ensuring the welfare of your employees.
Click on the download link below to get started now!