Q: What is the 'contract of employment'?
Mar 03 2010
Answered by: Marc Barber Ask a question
The words ‘contract of employment’ conjure up thoughts of a written document. But the terms of your employee’s contract of employment can be made up of anything you write or say. It can include what you say in the ad, in the interview, in the offer letter, when your employee starts work and any subsequent chat you have about the terms and conditions of the job.
The basic contract is offer of employment, acceptance of employment and agreed amount of payment; these can be oral or written. Anything else makes up the terms. It is far better to have the terms in writing, which are then signed by both the employee and employer. There is a legal requirement to provide a written statement of terms within eight weeks of the start of employment.
What to put in the written statement?
The statement should include your name and your employee’s name. You have to say when your employee’s present job began and when your employee’s period of continuous employment began.
You also have to give information on various terms and conditions. The terms and conditions are:
• the scale or rate of pay, including how it worked out.
• at what intervals payments will be made (weekly, monthly, etc.)
• hours of work, including normal working hours
• holidays, including public holidays and pay, including how it is worked out.
• place of work
• your employee’s job title or a brief outline of the work.
You will also need to include information on:
• sickness or injury and sick pay.
• pensions and pension scheme.
• length of notice to be given by you and your employee.
• if the contract is ‘temporary’, an indication of the expected duration.
• details of any collective agreement affecting the job.
Finally, you also have to state whether a contracting-out certificate under the Social Security Pensions Act 1975 is in force that applies to your employee.
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