Do I need to have an employment contract for my team?

This really comes down to what you mean when you say “Employment Contract”.

You are legally obliged to confirm the basic terms of employment, in writing, on the day on which someone joins your business. The things you need to confirm include things like pay, job title, start date, sick pay and some other key points. If that’s what you’re thinking of when you use the term “Employment Contract” then the answer is ‘yes’ you absolutely need to have one.

However, some people think about employment contracts as covering much more than the basics. They expect them to cover things like post termination restrictions, intellectual property rights and confidentiality rights. If that’s what you’re thinking of when you use the term “Employment Contract” then the answer is ‘probably’!

Full employment contracts of the type mentioned above help to protect your business. They will look to make sure that someone can’t leave your employment, steal all of your customers, employees and ideas and set up right next door.

When you engage with us for employment contract advice, we’ll tell you what we think you need. We’ll explain why and then work with you to put the correct documentation in place.

What process will you go through to create the employment contract?

The first thing we’ll do is talk about your business and guide you on why type of contract you require. It could be that what you need is a basic “Written Particulars” that meets your legal obligation to confirm key elements of employment in writing. Alternatively, it could be that you need a full employment contract. This type of contract covers elements such as post-termination restriction and non-compete clauses.

We’ll work with you to understand the main risks the employees present to your business. Can they steal your ideas, your customers, your staff?. Also, are there logistics that are important to you? Do you provide company cars? Do employees need to be registered with a professional body?

From this, we will create a draft. We’ll then review it with you to close down any remaining questions. We’ll do this either by phone or face-to-face. Then , we’ll send you the finished document.

What are the benefits of having an employment contract?

The first thing to be mindful of is that you are legally obliged to provide all employees with written confirmation of the basic terms of employment on the day that they join your business. Given that you need to do this, you should use the opportunity to go beyond just the statutory requirement and have a more comprehensive document that protects your business.

An employment contract offers the benefit of clarity of expectations for both parties. For example, if you don’t set out overtime arrangements then employees may do overtime expecting to be paid and you’ll then have to break the news that they didn’t seek the necessary permission and they’ve done the work for free!

Having essential clauses in writing allow for greater operational certainty for the business. This applies, of course, to the notice period and termination requirements that are agreed by both parties.

A written contract that spells out the benefits and entitlements is extremely beneficial as team members are absolutely clear about the terms that apply to their appointment.

What are the risks of changing my employment contract myself?

In short – your changes could have unintended consequences. At worse, they could invalidate the contract or not meet employment law requirements.

We have worked with many, many companies so have a great deal of insight into what can go wrong in employment relationships and we can guide you to include things that you might never have considered to be important..

What process is required to introduce or make changes to an employment contract for my existing team?

This is a question that you’re absolutely right to ask as you can’t unilaterally change terms and conditions of employment.

The basic rule is, if you want to change something that will have a material impact on an individual, you must consult.

This is the same whether you have an existing written contract that you want to change or whether there’s no written contract but you want to make changes to policies and working practices that have existed for years.

The term “material impact” can be challenging as you’ll be surprised as to the things that employees can become attached to and the things that you’ll get significant push back on if you try to change them without going through the consultation process. You need to think not only of legal risk here but also to the risk that the changes could have on morale and engagement.

We know the hotspots to look out for and our employment contract advice can guide you on the things that you may think will be non-contentious but that we know are likely to be more trouble than it’s worth to change.

We can also guide you on the full legal process to follow and what you can do if employees simple refuse to accept the changes that you want to make.