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Common questions about Contract of Employment

Employee working at a laptopWhen it comes to issues, disputes or queries related to the employment law, the first port-of-call will often be your Contract of Employment. It's within this contract you're likely to find everything you'll want to know about your specific role, responsibilities and entitlements. The contract should be fully understood and agreed before you accept a position of employment. Below are some of the most common questions people ask about their contract of employment.

What exactly is a Contract of Employment?

A Contract of Employment is an important part of starting a new job as it outlines the terms and conditions of the employment relationship between an employer and employee. In short, a contract of employment is an agreement that sets out employment rights, responsibilities and duties.

What type of employment contracts are there?

There are many different types of employment contracts. Some of the more common contracts include:

Indefinite Term Contracts - Full time and part time contracts are the most common type of employment contract and they stipulate a permanent and ongoing position. Employees gain rights under this type of Contract of Employment after a period of time, such as maternity pay, rights to redundancy pay, the right to not be unfairly dismissed, among others.

Fixed-term contracts - This type of employment contract outlines a specific period of time that the employee will be contracted to the work. Employees on these fixed-term contracts have access to the same rights and benefits as employees on other permanent contracts.

Temporary and agency contracts - Employees who are recruited through an agency have their contracts agreed and managed by the employment agency, therefore they are generally argued to not be employees of the end-user client. The length of these contracts tend to be flexible and agency workers are generally employed on a temporary basis.

Zero-hour contracts, contractors and freelancers - A zero-hour contract is an example of a very flexible workforce. It means the employer is under no obligation to provide a specific number of working hours to the employee and the employee is under no obligation to accept any working hours are that are offered to them. Freelance and contract workers are generally considered to be self-employed, therefore they do no receive the same rights and entitlements as permanent members of staff.

What things need to be included in a Contract of Employment?

Things that must be included in a Contract of Employment in line with Section 1 of the Employment Rights Act 1996 include:

  • Job information such as job title, description, start date, location and hours of work

  • Compensation and benefits such as how much, when and at what times the employee will receive pay

  • Holiday entitlement, sick days, notice period that needs to be given and details about the pension scheme

Employees and workers each have the right to receive a written statement from the first day of employment that includes working hours, days off work, all benefits and pay package, length of job, sick leave eligibility, details about any probationary period and any training that will be required.

Can the terms of a Contract of Employment be changed?

A Contract of Employment can be changed but only with the mutual agreement of both the employer and the employee, even after the contract has been signed.

Some employers may offer an incentive in an attempt to persuade an employee to agree to a change in the contract, or they may terminate the existing contract by notice period before offering the employee a new contract with the revised terms. Changes to a contract in these ways can be very complex, so it's always worth seeking specialist legal advice beforehand.

Is a Contract of Employment still enforceable if it hasn't been signed?

A contract can be made verbally or implied through the conduct of the parties, so a contract may have been agreed even if it wasn't physically signed. For a contract to be created, an employer must have made an offer and the employee must have accepted that offer, some consideration needs to have been paid and there must be evidence of a clear intention to create legal relations between each party.

Do you have a query related to your Contract of Employment? If so, don't hesitate to contact our expert team of solicitors here at Fonseca Law. We cover all areas of employment law as well a wide range of other legal services. Contact us today by calling 01495 303124, e-mailing enquiries@fonsecalaw.co.uk or by completing our online contact form.