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The advantage of getting it in writing


IS A written contract of employment really necessary? Well, legally, no. A contract of employment is a legal agreement between an employer and an employee and can be either verbal or in writing.

However, there are some details an employer must legally provide to the employee. This is called a section.1 (s.1) statement of particulars. Not only is it a legal requirement to provide such a statement, this must be provided to an employee within two months of their start date.

Such a statement includes details such as: identity of the parties; date employment began; date on which an employee’s continuous service began; place of work; job title; rate and intervals of pay; hours of work; holiday entitlement; pension entitlement; sickness entitlement; grievance and disciplinary procedures.

If it is not a permanent position, then include expected date when it is to end; details of any collective agreements; notice of termination; and confirmation as to whether an employee is required to work outside the United Kingdom. So, what happens if an employer fails to provide such a statement? They could face having to pay their employee two to four weeks salary, as well as an employment tribunal which will decide what particulars ought to have been included in such an s.1 statement. If they decide to instruct lawyers, they will also have to pay legal fees.

However, a more detailed written contract can offer enhanced protection for an employer. It can also assist in avoiding any disputes between an employer and employee. A comprehensive contract of employment could include extra clauses to those required in the s.1 statement – clauses to deal with, for example, restrictive covenants which are used to prevent employees from competing or from going to a competitor for a specified period of time following termination of their employment. Such a clause is highly desirable if a key member of staff leaves your business. Further clauses could include recovery of training fees, commission structure, email/internet policy and garden leave clauses. Not only do they protect a business, but they also set out clear boundaries as to what is and what is not acceptable behaviour in the workplace.

Gillian Markland is head of employment law at Ingrams Solicitors.


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