It’s safe to say I’ve seen a few employment contracts in my time! A non-compliant employment contract can be expensive – a tribunal can award up to four weeks’ pay for each out-of-date contract you’re using.
https://www.halborns.com/wp-content/uploads/2023/05/Stefan-LinkedIn-PP-v1-3.png
Key areas of compliance for employment contracts were introduced in 1996 by the Employment Rights Acts…there’s no excuse for getting those elements wrong! More recently in 2020, the Good Work Plan added more red tape with further compliance requirements which employers have been slow to adopt. Here are the top five areas I’ll see regularly missing from employment contracts:
- Any paid leave the employee benefits from (maternity or paternity leave, for example)
- Details of all remuneration and benefits (such as enhanced maternity pay or private medical insurance)
- Training requirements for the role, whether they’re mandatory, and who will pay for the training
- Whether working hours are variable (or not as the case may be)
- The correct statutory minimum notice employees are entitled to (one week for each complete year they’ve worked for you, up to a maximum of 12 weeks)
Reference to these areas needs to be included within the contract, even if they don’t apply. If there is no training requirement for example, you need to say as much.
Contact me here if you’d like me to support you with reviewing your employment contracts. A review can cost as little as £500+VAT and save you considerable expense and reputational damage if you’re relying on out-of-date contracts.
This update is accurate on the date it was published, but may be subject to change which may or may not be notified to you. This update is not to be taken as advice and you should seek advice if anything contained within affects you or your business.
