The law requires that you provide every employee with a written contract of employment within two months of them beginning work. This must contain certain minimum details about the employment. These details include:-
- Names of Employer and Employee
- The date when employment began
- Job title
- The rate of pay
- Intervals at which pay is made
- The hours of work
- Entitlement to holiday
- Entitlement to sickness pay
- The notice period
- Place of work
The above information is the minimum that you are required to provide to every employee.
More detailed contracts
For some employees, you may want to consider providing a written contract that is far more comprehensive, setting out additional terms of the employment relationship in more detail.
These contracts may include the following:-
- Bonus and commission schemes
- Benefits, such as company car, laptop computer, mobile telephone etc
- Pension arrangements
- Discipline, Dismissal and Grievance Procedures
- Enhanced redundancy entitlement
In some circumstances, it may be advisable to protect yourself from damage to your business that could happen if the employee leaves. You may wish to consider using restrictive covenants, such as:-
- A prohibition against working for competitors
- Restrictions against soliciting clients/customers or employees of your former employer
- Protection of confidential information
- Protection of trade secrets
You can also include provisions for how the employment relationship may be terminated. These include:-
- An extended notice period - this is particularly important for high-level employees with more responsibility;
- Pay in Lieu of Notice - you can reserve the right to pay notice pay as a lump sum instead of requiring the employee to attend work during the notice period.
- 'Garden Leave' - a requirement that the employee stays at home during their notice period but that they are available if required.
There are many factors to consider when providing an employment contract. Please contact one of our soliciors to discuss your requirements.
