Originally written by Alex Bearman on Small Business
A written employment contract is not necessary to establish an employment relationship in law. However, there are many good reasons why employers will want to have in place well-drafted terms of employment.
Fundamentally, like all written agreements, employment contracts help to provide the parties with certainty. Staff are more likely to feel that they are part of a well-run business if the terms of their employment are set out in a sensibly drafted contract. The sense of security which this provides should not be underestimated.
Here are some of the tangible benefits for businesses of investing in the preparation of a written employment contract.
>See also: How to deal with a furloughed employee who refuses to return to work
The legal obligation
Subject to some very limited exceptions, all employers are required to provide their employees with a written statement of employment particulars setting out certain key terms including:
the names of parties
the date of commencement of the employee’s employment
the rate of pay
terms relating to hours of work
the place of work
terms relating to holiday entitlement
the length of notice required by either party to terminate the contract
Where an employer fails to provide the employee with written particulars, a complaint can