Do we need employment contracts?

Employees and workers are entitled to a statement of their terms and conditions of employment that is in compliance with section 1 of the Employment Rights Act 1996.

This statement must be given no later than the beginning of the employment, however, certain prescribed particulars may be given in instalments not later than two months after the beginning of the employment.

Whilst the section 1 statement is the minimum requirement, this is not suitable for employees that are senior or key to the business (i.e. directors or in sales generating roles) as these will not cover aspects such as shareholdings, bonus and commission arrangements, intellectual property and post-termination restrictions.  We would therefore recommend that more comprehensive employment contracts are put in place for these employees.

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