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01 overview
Employment contracts are important documents that define the relationship between an employer and employee, outlining duties, rights, and obligations.
A well-drafted employment contract can prevent disputes, protect your business interests, and ensure compliance with ever-changing employment laws. However, creating these contracts requires a deep understanding of legal requirements and best practices, which is why enlisting the help of a professional employment lawyer is essential.
At Lawhive, we offer a streamlined and cost-effective solution for all your employment contract needs, whether you're a business owner looking to draft your first employment contract, seeking to update your existing contracts, or need help negotiating the terms of your employment.
Here's why choosing Lawhive is the smart choice:
To get started, contact us today for a free quote.
An employment contract is a formal agreement between an employer and an employee that outlines the terms and conditions of employment. It lays the foundation of the working relationship, detailing everything from job responsibilities and salary to working hours and benefits.
In the UK, employment contracts are a legal requirement. Employers must give employees a written statement of particulars within two months of starting work.
The first step in forming an employment contract is the offer. This is when an employer expresses a willingness to hire an employee under specific terms.
For the contract to be legally binding, the employee must accept the offer.
Usually, this process starts with an offer letter.
Consideration refers to something of value that the employee receives in exchange for agreeing to the employment terms. This could be:
For a contract to be enforceable, the consideration must be fair and of some value.
The terms and conditions of an employment contract set out the rules that govern the employment relationship. These include:
Express terms are specific details written into the contract, such as:
Implied terms are not specifically written down but are understood to be part of the contract. They include:
Incorporated terms are clauses that are brought into the employment contract by reference to another document like the employee handbook or company policies.
This means that although the terms themselves are not written out in full in the employment contract, they are still considered part of the agreement because the contract references them.
For incorporated terms to be enforceable, however, employees must have reasonable access to the referenced documents. That is, they should be readily available, either in print or electronically, and employees should be made aware of their content and any updates.
Statutory terms are included in an employment contract by law. They provide basic rights and protections for employees, like:
If you need help with drafting or reviewing employment contracts, Lawhive is here to help.
Our expert network of employment law solicitors provides tailored advice and support, ensuring your contracts are legally compliant and suited to your business needs. Contact us today to get started.
There are different types of employment contracts, each with its own set of terms and conditions.
| Type of Employment Contract | Description |
| Permanent Contracts | Permanent contracts are the most common type of employment agreement. These contracts are open-ended, meaning there is no specified end date. Employees on permanent contracts typically enjoy more job security and benefits such as regular pay, holiday entitlement, sick pay, and pension contributions. |
| Fixed-Term Contracts | Fixed-term contracts are used when an employer needs to hire someone for a specific period. Employees on fixed-term contracts have the same rights as permanent employees, including holiday pay and protection against unfair dismissal, provided they meet the qualifying criteria. |
| Zero-hours Contracts | Zero-hours contracts offer flexibility but less certainty. Employees are not guaranteed any minimum number of working hours and are called in as needed. |
| Part-time Contracts | Part-time contracts are similar to permanent contracts but with fewer working hours. Part-time employees have the same rights as full-time employees, including pro-rata holiday entitlement, sick pay, and pension contributions. Employers must ensure that part-time employees are treated fairly and not less favorably than their full-time counterparts. |
| Temporary Contracts | Temporary contracts are used for short-term employment needs. These can be similar to fixed-term contracts but are often more short-lived and less formal. Temporary workers are entitled to certain rights, such as holiday pay and protection from discrimination, but their benefits may vary depending on the length and nature of their employment. |
The clauses every employment contract should have are:
Creating an employment contract involves more than just writing down terms and conditions; it requires a thorough understanding of legal requirements and considerations.
In the UK, employers are legally required to provide employees with a written statement of employment particulars within two months of starting work.
This document must include fundamental terms of employment such as:
It's not uncommon for the terms of employment contracts to change over time. But, any amendments must be agreed on by both parties.
Employers must provide written notification of any changes and, ideally, get the employee's consent to ensure the changes are legally binding and to avoid disputes.
Employees have both statutory rights and contractual rights.
Statutory rights are granted by law and include things like minimum wage, holiday pay, sick pay, maternity and paternity leave, and protection against unfair dismissal.
Contractual rights are agreed upon between the employer and employee and offer more generous terms than statutory rights but can't offer less.
Employment contracts must comply with various legal regulations, including the Employment Rights Act 1996.
This Act covers key aspects such as unfair dismissal, redundancy, and employment particulars.
Other important regulations include:
Whether you're an employer looking to draft a robust employment contract or an employee seeking to understand your contractual rights, contact us today.
Negotiating employment contracts can be daunting, but with the right approach, it can lead to a mutually beneficial agreement for both employers and employees.
As an employer, negotiating an employment contract requires clarity, fairness, and transparency.
Here are some best practices:
At Lawhive, our network of experienced employment solicitors provide expert guidance on all aspects of employment contracts, from drafting to negotiation at a fraction of the cost of high-street firms.
Contact us today for legal support in employment contract negotiations.
Employment contracts shouldn't be static documents. It's important to review and update them regularly to ensure they remain compliant with employment law and reflect any changes in the employment relationship.
It may be necessary to review and update employment contracts:
A breach of an employment contract can take various forms, such as:
In the first instance, a breach of an employment contract should be addressed directly as soon as possible. This can often resolve the issue without further action.
If the breach can't be resolved through direct communication or even mediation, you may need to seek legal action. This could involve:
Potential outcomes of a breach of an employment contract depend on the nature and severity of the breach. They could include:
In the UK, employment contracts don't have to be in writing to be legally binding, however, employers do have to provide employees with a written statement of employment particulars within two months of starting work.
This means that employment contracts can be verbal, and formed through discussions and agreements. But they can be difficult to prove and enforce.
As such, it's highly advisable to have a written employment contract in place.
At Lawhive, we make the process of drafting, reviewing, and managing employment contracts simple and affordable.
When you choose us, you get top-quality legal services at a fraction of the cost, with no hidden fees. Plus, you can work with trusted experts in employment law.
Whether you need to draft a new employment contract or review an existing one, we are here to help. Contact us today for a free case evaluation and quote.
With straightforward pricing - so you know exactly what to expect at every step.
