Contract of Employment

  Home/Blog/At work/Contract of Employment

Contract of Employment

The written terms of particulars (contract of employment) A contract of employment is in many respects no different from any other contract. As such, it's governed by contract law, which means that there needs to be: • An offer of employment by the employer, which should be clear and unambiguous and may be conditional. • Acceptance of that offer by the employee. • Consideration between the parties, for example the work done by the employee in return for the wages paid by the employer. • An intention to create a legally binding arrangement.

However, because the employer is often the more powerful party in the arrangement, the law does require some extra aspects.

The essential elements of the written statement of particulars of employment are set out in UK law. From 6 April 2020, both workers and employees are entitled to receive written particulars from day one of their contract. Previously this right only applied to employees and employers had two months in which to fulfil the obligation.

Some information must be included in one document while other information can be delivered separately.

Items to be included in the main document:

• Names of the employer and employee or worker.

• Date when employment or engagement began.

• Date on which continuous employment began (employees only).

• Length of notice the employee or worker is required to give and receive to terminate the contract.

• Scale or rate of remuneration, or the method of calculating the remuneration.

• Intervals at which remuneration is paid, that is, weekly, monthly or other specified intervals.

• Terms and conditions relating to hours and days of work, including any terms and conditions relating to normal working hours, days of the week and whether hours or days are variable (and, if so, how they vary).

• Terms and conditions relating to entitlement to paid holidays, including public holidays and holiday pay, in such a manner as to allow them to be precisely calculated.

• Job title or a brief description of the type of work the employee or worker is to do.

• Place of work and address of employer or an indication that an employee or worker is required or permitted to work at various locations.

• Any other benefits (including benefits clearly specified as non-contractual) which are not covered elsewhere in the written statement.

• Details of non-permanent employment or engagement e.g. period of fixed-term contract.

• If the employee or worker is required to work outside the UK for over a month: arrangements for working outside the UK including period, currency of pay, additional benefits and return terms.

• Details of any probationary period.

• Details of training which the employer requires the worker to complete even if the employer does not pay for it.

Items that can be provided in a supplementary statement:

• Terms and conditions relating to incapacity for work due to sickness or injury, including any provision for sick leave and pay.

• Terms and conditions relating to occupational pensions and pension schemes (can be provided within two months).

• Any collective agreements, which directly affect the terms and conditions of employment, including who made the agreements (can be provided within two months).

• Where the individual is required to work outside the UK for a period of one month or more, details of the time they are to work abroad, the currency they will be paid in, any additional remuneration payable and any benefits provided by reason of working outside the UK and any terms relating to their return to the UK.

• Any other training entitlement (can be provided within 2 months).

• Disciplinary and grievance procedures (can be provided within 2 months).

• Any other paid leave.

Where there are no particulars to be entered under any of these headings, that fact should be stated, and all the above information should be given to the employee or worker.

While the Employment Rights Act 1996 states the items that must be included in the written statement of particulars, employers can refer to their employee handbook or other policies for precise details of issues such as:

• Documents relating to disciplinary and grievance rules and procedures.

• Documents relating to sickness and pensions.

• Documents relating to the detail of bonus or commission schemes.

• Collective agreements.

• Other terms (for example, private health care, overtime, holiday arrangements, retirement).

The written statement may additionally contain other clauses that an employer wishes to rely on such as restrictive covenants or rules about company equipment. Where an offer letter or written contract sets out the main employment terms and conditions, this can count as the written statement.

From April 2020, the written statement of particulars must be provided on or before the first day of employment. Current workers can request a written statement including the additional information which is now required. Employers should comply with these requests within one month.

About the Author

Having worked within HR Management for 19 years, in 2013 Kelly wanted to make better use of her skills and knowledge by adding value within the SME arena. Kelly believes that whilst people management and the resulting transactional tasks are an essential part of any business, they can be time consuming and unrewarding, so another passion of hers is to release this burden from smaller businesses and allow them to get on with their passion – their business!
Leave a comment

Make sure you enter all the required information, indicated by an asterisk (*). HTML code is not allowed.