What clauses do you want in your employment contract?
- hrbytara
- Feb 21
- 2 min read
Workers have a legal right to receive a written statement of employment particulars on or before their start date. There are specific rules (last updated in April 2020) about what MUST be included within that document. Most of what must be included is fairly obvious, but it’s worth checking that whatever template you use does actually cover them all - see https://www.acas.org.uk/what-must-be-written-in-an-employment-contract/what-the-written-statement-must-include
Within the Employment Rights Bill, the government is proposing a few changes to what must be included, but there’s nothing you need to do until we have clarity on what those changes are.
A basic written statement of employment particulars is pretty short, possibly fitting on just one page, and you definitely don’t need a HR professional or solicitor to write it for you. You can download a template (with a few extra clauses added) from ACAS or the FSB Legal Hub (if you’re a member).
However, as well as what you MUST state within the written statement, you may want to add other terms to protect you legally as an employer. Which ones to include depends on what matters to you and your organisation, what risks you want to mitigate and what you want the relationship with your staff to be like.
Basic things we always discuss with clients include:
Conditions of employment - DBS check, driving licence, qualifications, etc.
Probationary period arrangements
Flexibility expected from people regarding their role and responsibilities and their working hours
Expectations regarding business travel and working in other locations
Bonus and commission payments
Employee benefits
Types of deductions you want to have the right to make, e.g. damage to client property
Short time working and lay off arrangements - in case of shortages of work
Restrictions on other employment or voluntary work
More significant discussions often take place around areas such as:
Responsible business practices and whistle blowing
Confidentiality requirements
Intellectual property rights
Data protection compliance
Information security compliance
Conflicts of interest
Post-employment restrictions
If your business has particular requirements in these areas then it’s worth having contractual terms that protect you - although sometimes they’re mainly acting as a deterrent. If you ever have to actually enforce them through legal action then that can be a very expensive undertaking.
It’s particularly important to think about what you actually want to specify as a contractual term and what you want to include in a Team Handbook instead. Remember that contractual terms are much harder to change in the future (you’ll probably need to consult), but you can change the wording in your Team Handbook or policy statements relatively easily. Often, we advise our clients to keep the contractual terms quite brief and expand on the expectations within other non-contractual documentation. It’s all about getting the balance right.
When using third-party templates, read through them carefully and tailor them to your situation.
Make sure you don’t inadvertently commit yourself to things you won’t actually live up to - that could end in a claim for breach of contract.
Bear in mind that if you want to change any contractual terms later then you’ll need to consult with your staff and gain their agreement.
If you’d like some help with reviewing or updating your employment documentation, then please get in touch and we can have a chat.
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