Employment Contracts

The contract between an employer and an employee forms the basis of the working relationship and it is vital to read them. If it is a written contract it may also refer to another document or documents, such as a staff handbook, so, tedious though it might be, new starters are well advised to go through all this information properly at the start of a new position.

Written Contracts or Verbal?

It's a common fallacy that an employment contract has to be in writing. Of course, they often are, but verbal contracts are just as valid. If you have agreed to work for someone and will be paid in return, that is a binding contract even if it's not written down, and as such, protects you from any discrimination or illegal behaviour on the part of an employer. If a written contract is expected, then it should be with you within two months of starting a new position.

A written contract will cover, as a minimum, the hours you are expected to work, where you will be working, notice periods, how your pay will be calculated and your entitlements in terms of holidays, breaks, sick pay and the like. The contract should also state the name and address of the company that is responsible for paying your salary. There may well be more information but anything with less than these basics should be viewed with suspicion.

Fixed-Term Contracts

Many full-time jobs are now offered on terms known as 'fixed-term contracts', which means that the contract will specify a date on which the employment will end. This is often for quite valid reasons, for example, covering for someone who is on maternity leave and is expected to return to work after, say, nine months or a year, or to fill a post on a project which is expected to be completed during a set period.

It is just as often the case, however, that a fixed term contract is used to limit the company's commitment to keeping a person in a job for too long. They can dispose of the person relatively easily after the contract has expired, without having to go through any disciplinary procedures or dismissal process.

Contractual Negotiations

Contracts often come to the fore when businesses need to make changes. As a contract is an agreement between two parties, if one breaks it then the other party can take action. For an employee, this means that if a change is forced upon you that is unacceptable you are able to declare the contract terminated and walk out, claiming constructive dismissal. You can also choose to stay in employment and make a claim for breach of contract, which, if successful, could net you compensation.

It obviously makes sense if both parties agree to any changes that are necessary to an employment contract, such as those caused by a relocation of a business, new working hours or pay schedules. Negotiations around such changes often lead to compensation for employees, such as travelling expenses for the first year in the case of relocation.

The changes can come from the employee too. It could be that changes in an employee's personal life means that they cannot work the same hours that they used to and need to change. Most employers will be open to such changes as long as they don't affect the employee's ability to get the work done, but the negotiations can be tricky.

Independent Advice

It is important to read and, to the best of everyone's ability, understand an employment contract, although the way many of them are written doesn't make this easy. The other area where employees need to be careful is when employers request changes to working conditions. These may not necessarily be bad changes but if they materially affect the conditions outlined in an employment contract, then both the employer and the employee need to go through a negotiation process to ensure that the contract keeps pace with reality and that compensation is arranged, if appropriate, in return for agreeing to the changes. This can be a tricky area though and it is vital to seek out independent expert advice. Trade union members can get advice from the union representatives and non-union members can turn to the Citizens Advice Bureau (CAB) or ACAS, the Advisory, Conciliation and Arbitration Service.

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