Small Business Contracts

Employment contracts are crucial to hiring and retaining valuable staff, as well as making sure you always follow the law. No matter how big or small your business is, a solid employment contract is non-negotiable. Even if you only have one employee, you should take their contract seriously. While most terms within the contract will be identical, there may be a few key differences between a smaller and larger company.

Thankfully, we have a team of employment law experts at Croner that are ready to step in and support you when it comes to contracts and documentation. For immediate advice on anything to do with documentation, contact our consultants today on 0808 501 6651.

Statutory requirements of employment contracts

It’s important to remember that an employment contract isn’t only just a practical obligation, but a legal one. From an employment law perspective, it is unlawful not to have a contract of some form when employing an individual into your business.

An employment contract lays out exactly what you expect from your employees. In return, they also state the obligations you must stick to as their employer. This way, both you and your staff are kept fully up to date about what is expected from both sides. Your business will run more smoothly, effectively and proactively if you take the time to make sure your employment contracts are high-quality.

In the unfortunate but common instance of any HR issues arising, you’ll always have your employment contract to back you up and refer to. In doing this, you can be sure that you’re always following the law when dealing with your employees.

So, what’s included in an employment contract? They’re made up of many different terms - some are express, and others are implied.

Express terms are those that are relating to employment law and statutory requirements, and they’re stated directly within the employment contract. These terms can relate to:

• Salary
• Working hours
• Role duties and responsibilities
• Employee benefits
• Holiday entitlement and pay

Implied terms are exactly that; terms that aren’t written down but are implied by other terms within the contract or the law. If the employee agrees and begins the contract, these terms are presumed to also be agreed. Examples of implied terms include:

• Duty of mutual trust and confidence between employer and employee
• Right to receive at least the National Minimum Wage
• Right to a minimum period of notice

To make sure your documentation is airtight, you should include as many terms as possible in writing. This means everyone is clear on what is expected from them, and the employee knows their rights and obligations.

What's included in small business contracts? 

The main differences in employment contracts often don’t come from the size of the business, but the type of employee they’re engaging with. For example, contracts can differ based on the type of contract that are drawn up, such as:

• Full-time contracts
• Part-time contracts
• Fixed-term contracts
• Temporary contracts
• Agency contracts
• Zero-hour contracts

At Croner, we have experts in every kind of employment contract, with experience in dealing with situations such as a breach of contract. Contact one of our consultants today on 0808 501 6651 for more information.

When do I need to provide a contract of employment?

You must provide a statement of main terms (SMT) from day one, otherwise you’ll be breaking employment law. As for the contract itself, technically you don’t have to provide a full written contract. However, if you have employed an individual, then there is already a contract in place as a verbal contract.  At Croner, we strongly advise you to provide an employment contract from day one of the individual’s new employment.

Relying on just a verbal contract is incredibly risky, despite it saving you time to draw up a written one. If an unfortunate situation occurs in the workplace between yourself and an employee, it is only your word against theirs, which can become very problematic when it comes to an employment tribunal.

To avoid any risk of losing an employment tribunal and being fined, you should cover yourself legally with a full written employment contract. For extra protection, why not cover yourself further with our Croner legal expenses insurance? 

Why not take a look at our employment contract template so you can get a better idea of what it should look like?  

Should I consider small business contracts? 

Yes. Regardless of how many or few employees you take on board, you must provide a contract of some nature. We strongly recommend a written employment contract, even if you have just one member of staff under your employ. If you have a small business, a written contract can protect your business just as much as if you were a larger business.

At Croner, we’re experts for a reason, so we can help to support you to draw up and update your contracts to remain compliant with the law. Give our legal documentation experts a call now on 0808 501 6651.