Contracts of EmploymentGillian Hinton
Are your contracts of employment good, bad or ugly?
Contracts of employment are a legal requirement for employees who are with a company for over a month, and must be provided within 2 months of starting work. Not only is it easy to let many more months roll by before getting round to this, when they are produced it is common to feel that a downloaded contract from the internet may suffice in protecting your company . This is unlikely to be adequate.
Getting the contract right is important for many reasons:
- It clarifies the terms for you and the employee so disputes about what has been verbally agreed are diminished
- It sets the standards that the company wishes it’s employees to work to
- It can represent the culture and suggests how a company treats its employees, for example a brief contracts with errors in may not be a good reflection of hoe professional your business is. A heavily legal document may detract from a fun and friendly environment that is sold at recruitment.
- Including clauses that are not legally viable may invalidate the whole contract
- Failure to include well thought out notice period clauses, probationary periods and restrictive covenants could leave you wide open to problems when terminating staff
Contracts of employment are critical documents when employing staff. They should be tailored for your company and provide you with current legislation and protection.