What is Included in an Employment Contract?

A contract should be drawn up for every new employee and it should be tailored to their specific job role. The contract should include:

Employment Contracts

The benefits of an Employment Contract

Employment contracts are mandatory and you can be fined if you don’t put contracts in place. However, above and beyond the fact that you need to remain compliant with government regulations, the implementation of employment contracts has many benefits. These benefits are detailed below.

Employment contracts reduce the risk of legal claims

When both parties (the employer and the employee) are in agreement with the contract’s terms and conditions, and they have signed the document, it reduces the chances of one party having grounds for legal action if the contract hasn’t been breached.

Employee contracts provide financial benefits to your business

With an employment contract, you can save money in all kinds of ways. As examples of employee contracts:

  • You won’t need to pay compensation in a legal claim if you haven’t breached the contract
  • You won’t pay more overtime and holiday pay than you need to
  • You won’t make mistakes when paying your employees their salaries

Employee contracts can protect the reputation of your business

As any business owner knows, a good or a bad reputation can make or break the business. With employment contracts in place, you will be able to maintain your positive reputation. Reasons include:

  • Protection from legal claims
  • Your employees won’t behave in ways that will bring your business into disrepute
  • You won’t be breaking employment laws
  • A confidentiality clause will ensure sensitive information isn’t leaked

Employment contracts law

Organisations that fail to provide the statutory statement of main terms and conditions will breach the rights of their employee.

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Advice on Employment Contracts

There are also many types of employment contracts to consider here. Because of this, it can be a good idea to get advice on the law, to make sure they are all drawn up correctly.

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Small Business Employment contracts

Just like large businesses, small businesses with fewer than 25 employees need professionally-written contracts. But finding the time to create them is a challenge when you have limited human resources.

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