Drafting and Reviewing Employment Contracts
A well-crafted contract simplifies the employment relationship, providing a clear and fair framework for both the employer and employee. Most employers invest in legal services to help them draft employment contracts to ensure they are complying with employment and health and safety laws and to provide them with adequate protection in case of any contract disputes.
What must be included in a contract of employment?
When creating an employment contract, it's important to cover key aspects for clarity and legal compliance.
You’ll have to include basic details like names and addresses of the employer and employee, ensuring accurate information for group companies. Include important dates, like the start of employment and, if different, the start of continuous employment. Decide on the job duration whether indefinite or fixed term and consider adding a probationary period.
Define the job title, duties, and reporting lines, noting any restrictions such as mandatory office days. Specify salary, payment frequency, and review details. Clarify benefits like company cars or healthcare, allowing flexibility for future changes.
Address workplace details, including mobility, travel, remote work, and international assignments. Outline working hours, overtime, and alternative arrangements. Detail holiday provisions, including statutory minimum leave, the holiday year, and procedures.
Cover sickness absence, including notifications, sick pay, and potential medical exams. Clearly state termination terms, like notice periods and reasons for summary dismissal. Protect confidential information and intellectual property with relevant clauses. Address data protection, especially with the General Data Protection Regulation (GDPR), ensuring compliance in using and storing personal data.
What to look for when reviewing an employment contract?
The most important thing to look out for when reviewing an employment contract is whether it accurately reflects the agreement between the employer and employee. It’s crucial to check that the contract is up to date with current legislation and that the correct details have been included.
How can GloverPriest help?
Understanding and keeping up with employment laws is crucial for your business to meet its legal obligations. Our expertise covers drafting and reviewing the following:
- Contracts of employment: These are legal agreements between employers and employees that outline the terms and conditions of employment, including the responsibilities, rights, and obligations of both parties.
- Directors' service agreements: These contracts specify the terms and conditions of service for directors in a company, defining their roles, responsibilities, and compensation.
- Employee handbooks: These documents include essential information about company policies, procedures, and expectations, serving as a guide for employees regarding workplace conduct.
- Disciplinary and grievance procedures: Outlining the steps and processes that employers and employees must follow in case of disciplinary actions or grievances within the workplace.
- Consultancy agreements: Legal contracts that define the terms of engagement between a company and an external consultant, specifying the scope of work, payment terms, and other relevant details.
- Compromise agreements: Also known as settlement agreements, these are legally binding documents that resolve employment disputes, usually involving termination, with agreed-upon terms and conditions.
- Non-disclosure agreement: A contract that ensures parties involved do not disclose confidential information to third parties without proper authorisation.
- Post termination restrictions: Clauses in employment contracts that restrict employees from certain activities, such as competing with the employer or soliciting clients, after termination.
- Confidentiality agreements: Similar to non-disclosure agreements, these contracts protect sensitive information from being shared or used without permission.
- Training agreements: Legal documents specifying the terms and conditions under which an employer provides training to an employee, often with clauses requiring the employee to stay with the company for a specified period.
- Settlement agreements: Legal agreements that resolve disputes or potential legal claims, usually involving a financial settlement and a release of claims.
- Social networking policy: Guidelines that regulate employees' use of social media in connection with their work, outlining acceptable and unacceptable behaviours.
- IT acceptable use policy: Outlines the acceptable use of company information technology resources by employees, including guidelines on internet and email usage.
- Equal opportunities policy: Demonstrates a commitment to providing equal opportunities in employment, regardless of characteristics such as race, gender, or disability.
- Franchising agreements: Legal contracts that define the relationship between a franchisor and a franchisee, specifying the terms under which the franchisee can operate the business.
GloverPriest Solicitors takes pride in delivering a dedicated service that is not only cost-effective but also personalised, transparent, and commercially minded. Our team of solicitors is well-equipped to provide comprehensive support in various aspects of employment law.
Contact our drafting and reviewing employment contract solicitors
At GloverPriest, we provide friendly and transparent employment advice. If you would like further advice on business employment matters, please don’t hesitate to speak to one of our expert solicitors today. Complete our enquiry form.
Frequently Asked Questions
How often should a contract be reviewed?
You should review an employment contract every time you ask a new starter to sign it. It’s good practice to review or have a contract solicitor check over your contract from time to time to make sure you have the correct terms in place. Employment laws can change a lot so it’s vital to make sure your employment contracts reflect current rules and regulations. In addition, you may change your employment policies such as moving to a hybrid working pattern or changing your social media policy, these amendments should be updated in your employment documents.
Can you make your own contract of employment?
You can make your own contract of employment, however, it is good practice to ask a contract solicitor to draft one for you to ensure you include all the terms and conditions that apply to your business. Your employment contract is there to protect both you and your employees. As such, you want to be certain that all the necessary details are covered.
