Q: I have a small company that has been going for over 35 years. Most employees are long-term but no one has a contract. Are there any basic understandings in this situation and should contracts be created?
Aug 18 2009
Answered by: Peter Done Ask a question
Contracts actually already exist for your employees through custom and practise. Essentially what this means is that the current working patterns and operations that your employees have been consistently undertaking have now become contractual. However, you are under a legal requirement to issue employees with a statement of your main terms within two months of them starting. Although not legally required, good drafting of additional roles and procedures that employees must undertake can assist in the efficient management of your workforce.
Failure to issue statement of main terms may result in financial penalties at of between two and four weeks pay, so it is important that you issue employees with a statement of main terms as soon as possible.
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