Why it’s important to have employment contracts

Employment contracts are key documents for both employers and employees and there are many reasons that they should be used. They are a document that sets out the expectations that you have of your staff as well as what your staff can expect of you. They are often one of the first pieces of information that are used in a Constructive Dismissal by companies like Employment Law Friend.

Image credit

There are some key areas that are included in an employment contract and these can include:

• The start date of the employment with the company. There may also be a date that the individual starts the current job role. This is particularly important for those members of staff who move within the business. You need to define the difference between their start date in the role and their continuous service date within the business.

Image credit

• The salary that will be paid for the job and any bonuses that might be related to this. These figures are also given before tax is taken out.

• Duration of the job, the job title and a description that covers what the responsibilities and duties will entail. You also need to state the working hours, probation period and holiday entitlement.

• Grievance and disciplinary policies should be mentioned as well as sickness and absence policies.

• Notice period relating to both parties as well as the eligibility to enrol in the employer’s pension scheme.