Contracts and terms and conditions of employment

What is a contract of employment?

A contract of employment is an agreement between an employer and an employee that governs their working relationship.

As soon as you have accepted a job offer from the employer, you automatically have a contract of employment and this can be written or verbal.

Do you need a written contract of employment?

It isn’t necessary for a contract to be in writing for it to be legally binding, but it is better if it is as it saves confusion over various issues and provides evidence of what has been agreed. However, if you are an employee and your contract lasts for at least one month, you are entitled to receive a written statement of initial employment particulars outlining the main terms and conditions of your employment within 2 months of starting work. This is also referred to as a ‘written statement of terms and conditions of employment’ or ‘a section 1 statement’, as the right is conferred by section 1 of the Employment Rights Act 1996.

What sort of terms are included in your contract?

Your contact will include various types of terms, such as:

Statutory terms relating to issues that are regulated by law, such as the minimum notice period.
Express terms relating to issues specifically agreed between you and your employer, either in writing or verbally.
Implied terms relating to issues that have not been agreed verbally or in writing but should be obvious. These can include issues such as your employer’s obligation to provide a safe place to work; you actually being able to do the job you are employed to do – e.g. having a driving licence to do a driving job – or the fact that you will not steal from your employer.
Incorporated terms relating to issues that have been included in the contract as a result of work rules or collective agreements.

What must your written statement of terms and conditions contain?

There are certain issues which must, by law, be included in the principal statement of terms and conditions and others which may be contained in staff handbooks etc. These are:

Your name and that of your employer.
Your job title or a job description.
The date your employment and any continuous employment started
Your job location.
The amount of pay and how often you will be paid (e.g. weekly or monthly).
Your working hours (not more than 48 hours a week unless you have opted out).
Your holiday entitlement (statutory minimum is 28 days a year for a full-time worker working 5 days per week).
Collective agreements that directly affect your conditions of employment.
The notice period you must give or be given to terminate your employment.
Details of the company pension scheme.
Sick leave and pay entitlement.
Pensions and pension schemes.
Disciplinary and grievance procedures.
Appeals procedure under the disciplinary and grievance procedures.

If your employer does not provide you with a statement of terms and conditions within 2 months, you can take out a grievance if you cannot solve the issue internally and you can take the matter to an employment tribunal and seek clarification of what your terms and conditions are.

Can my contract of employment be varied?

Only if both you and your employer agree to it. This may be for some business reason (in which case your employer may need to consult with all employees affected) or if you want to ask for more holidays or change your working hours, for example.

Your contract can be varied on an individual basis or as a result of a collective agreement. You should receive written confirmation of any changes to your contract within one month of the change taking effect.

What is a staff handbook?

Whilst not a document that is required by law, this is a written document spelling out some of your employer’s policies and procedures. It details practices that the employer can expect you to comply with. It can cover lots of issues specifically tailored to an employer’s business, including, amongst other things, equal opportunities, family friendly working practices and guidelines for the use of company motor vehicles. A staff handbook helps you to understand working practices and avoids misunderstandings and ambiguities. It should be easily accessible by all staff and is often held on an intranet.

How can my contract be terminated?

If you want to terminate your contract, you must resign from your job. Whilst you do not need to give your resignation in writing, it must be clear, so it is by far better to do so.

Your employer can terminate your contract by dismissing you. This does not have to be in writing, but if you have 2 years’ service, you have the right to ask for a written statement saying why you have been dismissed and your employer has to give this to you within 14 days of asking. However, if you are pregnant and are dismissed, this statement must be given to you no matter how long you have worked for the employer and whether you ask for it or not.

How much notice must I give or get to terminate my contract of employment?

That will depend on your contract. You must give your employer one week’s notice unless your contract says otherwise – in which case you must give whichever is the longer period.

Your employer will give you whatever period is stated in your contract, or the statutory period of notice – whichever is the longer. The statutory notice period is:

one week if you have been employed between one month and two years
if you have been employed for two years or more, you must be given one week’s notice for each complete year you have worked – up to a maximum of 12 weeks. For example, if you have been employed by your employer for 4 full years, you will be given 4 weeks’ notice.

Many employment contracts specify longer notice periods, especially for more senior jobs, so do check carefully.

You can be dismissed summarily (without notice) if you have committed gross misconduct, such as theft or violence. If you believe that your employer has fundamentally breached your employment contract you may, in some circumstances, resign and pursue a claim for constructive unfair dismissal.

How can Graysons help?

You should read your contract carefully before you sign it as, by signing it you are accepting the terms within it.

If you have a problem that means that your employer breaks your contract, for example, if you are not paid, try to resolve the problem with your employer first – this might mean raising a grievance. If you need help with this or are not happy with the outcome, please contact our experts now for a free first appointment in which we can discuss your case.