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What are the minimum legal requirements to outline in the employment contract template you are using?
Many employers face this challenge in an ever changing, dynamic economy as we experience in the UK today.
Let us explain what you need to cover in your basic employment template contract. We will also provide you with a free employment contract template compliant with UK law.
Start by using a good employment contract template
You found the employees you need to fill those vacant roles in your company. How do you make sure you use the right type of contract to hire them?
Use a basic employment contract template to streamline your process for your new starters.
This is both an exciting and a challenging time for you and your new employee/s. You want to get off on the right foot when you offer them a contract.
Legally, new employees are entitled to a statement of main terms from the first day of employment. This is different from a contract of employment; it still contains many of the same terms. You will optimise your effort and time at this stage by offering a contract instead of a main terms of employment document.
Think of it not only as a legal requirement, but also as the foundation on which to build your future relationship with each new employee.
How to write your basic employment contract template
No business has a “one template fits all” contract, for a very good reason. You aim to hire employees that are a great fit for each role, at each level of seniority. It comes as a given that you provide them with the right type of document.
Remember that you need to cover the minimum legal requirements.
Start with this downloadable employment contract template, which outlines four fundamental types of information:
- Capability procedures
- Disciplinary procedures
- Whistle-blower policies
- General policies & procedures
We have put this simple template together to encompass the main aspects recommended by ACAS.
At a first glance, the list below might look overwhelming. Consider each item as a building block that, once fixed in its place, will fulfil its function. You won’t need to go over it again any time soon.
- The employer’s name
- The employee or worker’s name.
- The start date (the day the employee or worker starts work)
- The date that ‘continuous employment’ started for an employee
- Job title, or a brief description of the job
- The employer’s address
- The places or addresses where the employee or worker will work
- Pay, including how often and when
- Working hours, including which days the employee must work and if they can change
- Holiday & holiday pay, plus an explanation of how its calculated if the employee leaves
- The amount of sick leave and pay
- The notice period either side must give when employment ends
- Any probation period, including its conditions and how long it is
- Training that the employee or worker must complete, including training the employer does not pay for
You can add other terms later, in instalments when the necessity arises, such as:
- Pension arrangements
- Non-statutory employee benefits
- Collective agreements
- Disciplinary rules & procedures
- Grievance rules & procedures
Employment contract template - Dos and Don’ts
We have listed above the terms to include, and this should give you a good start. However, we did not include further details about how to work out the best mutually beneficial terms. Such terms vary with each role and each specific type of employment contract.
The wording is up to you, as long as you keep in mind there are some dos and don’ts.
Perhaps one of the most critical points to be aware of is that you need to stick to the wording. For example, if the contract states that an employee’s probationary period is due to last three months, you shouldn’t extend it to six months without good reason and appropriate notice. Doing so puts you and your business at risk.
Remember, the below employment contract template is a sample only. You will need to alter it to fit your business and the role you are hiring for.
For further support on employment contracts, speak to one of our documentation team today. We will help you with the employment contract advice that you need.
Download our free sample contract of employment template
Download our free sample contract of employment template to make a good start. Contact us directly so we can assist you with more in-depth details for more specific types of contracts that your business requires.Download
- Business Advice
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- Leave & Absence
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