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What to include on a contract of employment

What to include on a contract of employment

What to include on a contract of employment

One of the most important steps to building a good working relationship with your employee, is to provide them with a comprehensive contract of employment.

Providing a contract of employment for your employee, will help to prevent any conflict and mitigate risk, as both you and your employee will have a clear understanding of what is expected, from the outset of their employment.

So, what is included in a contract of employment?

A contract of employment is an agreement between the employer and their employee, which should lay out the duties and responsibilities of both parties and should cover the following points:

• Start date

• Rate of pay (we recommend agreeing a Gross salary with your employee and using this figure within the contract)

• Working hours

• Rights (e.g. Holiday Entitlement/ Statutory Sick Pay/ Statutory Maternity Pay)

• Responsibilities

• Duties

• Employment Conditions

• Probationary and notice period

• Grievance and disciplinary procedures

• Details of any training the employee must undertake (including any training not paid for by the employer)

• Details of any additional benefits offered by the employer

• Any other paid leave

It is important to remember that everything detailed in the contract, must abide by employment law. For example, the agreed rate of pay must meet or exceed the current National Minimum Wage rate as well as allowing your employee to take any holiday leave that they are entitled to.

If you are unsure of the current National Minimum Wage, please visit our rates and thresholds page.

Can anything else be included in the contract of employment

Additional terms such as Confidentiality and Relocation can be added to the contract of employment, should you wish. If you are a Stafftax customer and wish to vary the terms of employment, please get in touch with our HR team, who will be happy to assist.

Why is a contract of employment important?

All employees are entitled to receive a contract of employment, or at the very least a statement of employment terms, by the first day of their first working day. This allows the employee time to read over the document and raise any queries that they may have. Not providing one to your employee may result in issues later in the employment.

A contract of employment also provides a reference point for both parties, through out the employment journey. Informing the employee of their rights as well as laying out the duties that they will be expected to undertake during this time. This not only protects the employee but also ensures there are expected standards to be met.

As part of our Stafftax payroll service, customers will also receive access to our HR support team and a free bespoke contract of employment. To read more about our comprehensive payroll service please visit our services page.

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