| An employment contract is an extremely | | | | is vital that you have it in place to ensure that |
| important document for any business. It is a | | | | everybody is fully aware of their legal rights and |
| legally binding contract between an employer and | | | | those of the company. |
| the new employee; therefore it is vital that it | | | | Remember to include anything that is individual to |
| includes all of your unique requirements along with | | | | your company. There are a variety of |
| the standard terms. | | | | standardised templates available, but these won't |
| The reason why your employment contract | | | | cover you for everything. For example you might |
| takes on so much importance is that it can save | | | | be a company that handles a lot of sensitive |
| you a lot of problems further down the line. As | | | | information or data. In this situation you need to |
| already stated, it is a legally binding document, | | | | make sure that this is covered and the legal |
| therefore when the signees put pen to paper | | | | ramifications of misusing this are outlined. |
| they need to abide by what is written. If you | | | | Of course you also have to include an overview |
| overlook seemingly small issues, an eagle-eyed | | | | of the role itself. This will possibly change from |
| employee could later use this to their advantage. | | | | person to person within the company, so again |
| There have been many instances where people | | | | you need to be precise about the duties they will |
| have successfully sued former employees in a | | | | be doing and the job title they hold. |
| tribunal due to breaks in their contractual | | | | Similarly, and it might sound straightforward, but |
| agreements. To avoid this kind of situation you | | | | you have to include the address of your primary |
| need to include as much essential information with | | | | place of work and any other locations that you |
| precise clarity in the initial employment contract. | | | | may work. You should also include the employers |
| This way both parties are covered and have a | | | | address too. |
| clear understanding of what is expected. | | | | Starting pay and working hours also need to be |
| So what kind of things should you be looking to | | | | included. Again this is just to ensure that both |
| include? | | | | parties have agreed and that this will be the |
| Well, you need to give a clear indication of | | | | starting rate. If you have a pension scheme, |
| disciplinary procedures. If you offer clear advice | | | | health benefits or any other bonus scheme, this |
| on when an employee may be disciplined and to | | | | should also be contained within your employment |
| what degree, i.e. suspension or dismissal, you | | | | contract. |
| should cover this adequately. | | | | Finally, don't forget about your notice period. |
| You should also include details on annual leave and | | | | Whilst the standard notice might be a month, |
| your sick pay policy. This will differ from company | | | | some businesses have a longer period, so be clear |
| to company, therefore you have to ensure that | | | | and ensure that the employee is well aware of |
| the new member of staff is fully aware and has | | | | the situation. You should also include any |
| agreed to the terms of the employment contract. | | | | information on when this may be terminated |
| By including this within the document you cover | | | | earlier, i.e. in the case of a disciplinary or if |
| yourself against employees taking excessive time | | | | gardening leave is offered. |
| off and leaving you short on staff. | | | | That is pretty much it. Whilst some might be |
| Essentially you are setting a business protocol that | | | | obvious, other segments of the employment |
| all staff must abide by, including management. | | | | contract require great thought and need to be |
| Whilst much of the information contained within | | | | properly developed to cover each individual |
| the employment contract may never be used, it | | | | member of staff. |