Many employers are not aware that employment contracts exist even if it is not written down. From the moment you make a job offer to an individual an Employment Contract is formed in law; there is no legal requirement to provide a written contract to an employee but it makes absolute business sense to make sure you do.
Written employment contracts can contain your legal obligation to provide an SMT (Statement of Main Terms of Employment) and in addition, it should contain any additional terms you have agreed with your staff as well as your business’ rules, policies and procedures.
Producing and providing written employment contracts to your employees will go a long way in not only helping you resolve any staff disputes but also in safeguarding your business.
Written employment contracts are legal documents: they need to be correct; they need to reflect what your business requirements are and they need to be easily understandable by your employees.
Our free advice service can provide advice and guidance on where to start with producing employment contracts.
As an employer you are legally bound under the Employment Rights Act 1996 to provide, as a minimum, a Statement of Main Terms to your staff no later than two months after the start of employment. A failure to provide this document to your employees can result in fines at Employment Tribunal of up to 4 weeks’ pay per employee.
The Statement of Main terms contains important information regarding the agreed employment relationship between you and your staff members. It goes without saying that it is imperative that this document needs to be legally compliant and accurately reflects the working relationship that has been agreed.
Our free advice service offers guidance on what should be contained in employment contracts and SMT’s. If you need help producing one we can certainly provide support. Call PeoplePointHR today on 0330 555 2555.