FAQs about Contract of Employment
What is an employment contract ?
Employment contracts set out the mutual obligations and rights of both employer and employee. The terms of a contract can be both written and verbal and can change over time according to the circumstances. Both employer and employee are bound by the contract until the end of the contract term.
Do I need an employment contract ?
Your employer is legally obliged to provide you with a written contract within two months of commencing your employment. As a bare minimum, the contract should state the main terms of employment, such as the hours you work, where you work, pay etc.
What are the terms of the contract ?
The terms of the contract state your rights and obligations as an employee. They come in many forms and can be: verbal, contained within a written contract or statement, included in an employee handbook, part of collective agreements negotiated by trade unions, within the offer of employment or implied into the contract by law.
What are implied contract terms in the context of employment ?
Implied contract terms are terms which are presumed to be included in any employment contract and guarantee minimum levels of rights. If the contract provides less than these guaranteed rights, then that term will be invalid. Terms can be implied either by custom or legislation, and as well as protecting employees can create duties between both employer and employee. There is, for example, an implied term imposing a “duty of mutual trust and confidence” between employee and employer.
What minimum levels of rights does the law seek to uphold ?
Employment rights are complex and numerous. As a guide, every worker is entitled to a minimum wage (which varies according to ages up to 21 and employment status), the right to a safe working environment, the right to join a trade union, the right to work up to 48 hours per week (any more is voluntary).
Can changes to employment contracts be made ?
Both employee and employer are entitled to negotiate changes to employment contracts. However, changes can only be made by a mutual agreement or through any collective agreement between a trade union and employer. Changes do not necessarily have to be made in writing, although a new written contract must be provided for any changes to the written terms in the original contract.
My employer has breached the employment contract. What remedies are available ?
Standard legal remedies would be in damages for breach of contract. However, to preserve existing employment arrangements and avoid expensive fees, many employees will try to negotiate with their employers through a trade union or exhaust any existing internal complaints procedures. If the issue is not resolved and/or any complaint’s procedures used are unfair, you can make an application to an employment tribunal. If your application is accepted, you will be encouraged to try and mediate the issue with your employer through the Acas (Advisory, Conciliation and Arbitration Service). If this proves fruitless, the final stage will be a tribunal hearing.