Why is it important to have a contract of employment?

West HR

It’s the law – It is imperative that employers have a contract of employment in place for all of their employees – this is not only a statutory requirement, but also good business sense as it essentially lays down a set of ground rules between the two parties.

What should a contract of employment include?

  • Names & address of the employer and the employee
  • The nature of the employment
  • Date on which the employment began
  • Scale or rate of remuneration
  • When they will be paid
  • Hours of work
  • Holidays & sickness entitlements
  • Appropriate medium and method to terminate the contract

Why should a contract of employment be issued?

An employment contract is an agreement that carries with it an obligation to pay wages in return for service and a corresponding right of control on the part of the employer. Before an employer/employee can make claims under the contract of employment, such party must prove that the existence of a contractual relationship. If an employee wins an unfair dismissal case the judge will make an additional award for no contract and decide the contractual terms (rather than the employer being in control).

When can a contract of employment be terminated?

  • Expiry of the period for which it was formed
  • Death of the worker
  • By notice

Who should I contact if I need further contract of employment information?

If you require a contract to be drafted or require further information on contracts, or a review of your current employment contracts – please do not hesitate to contact Sue @West HR

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