An employment contract sets out the terms of employment, documenting your responsibilities and obligations as an employer and binds you by its terms.
What are your obligations?
Employers are obliged to provide employees with written terms confirming basic arrangements such as place of work, rate of pay and holiday entitlement etc. within two months of the employee’s start date where their employment contract lasts for one month or more.
All employees will have a contract of employment irrespective of whether there is a written contract in place. Where no written contract exists, a verbal contract of employment may be equally valid. However, it is best to have a formal contract drawn up to avoid misunderstandings and reduce the risk of future disputes.
Employers may also want to include post-termination restrictions in the contract so that when an employee leaves, they are not permitted to solicit or deal with the employee’s clients for a specified period of time after their employment ends.
How can we help?
We have considerable expertise and knowledge of the market standard for employment contracts and can provide a comprehensive service in this area. We can also assist in drafting different types of employment contracts, including contracts for junior and senior employees, salaried partners and directors’ service agreements.
Where an employment relationship already exists, in most cases both parties must agree to any amendment to the contractual terms. If an employee rejects their employer’s proposed change of terms, this can lead to complications and even the employee’s dismissal. This is a complex area which we can advise you on.
If problems arise, we can provide both advice and representation regarding disputes and breach of contract claims.