All employees have an employment contract with their employer. A contract is an agreement that sets out an employee’s:
- employment conditions
- rights
- responsibilities
- duties
These are called the ‘terms’ of the contract.
Employees and employers must stick to a contract until it ends (for example, by an employer or employee giving notice or an employee being dismissed) or until the terms are changed (usually by agreement between the employee and employer).
Accepting a contract
As soon as someone accepts a job offer they have a contract with their employer. An employment contract does not have to be written down.
A contract between an employer and an employee or worker is a legally binding agreement. This could be a ‘contract of employment’ or a ‘contract of service’.
A contract can be agreed verbally or in writing.
What an employer must provide in writing
Anyone legally classed as an employee or worker has the right to a written document summarising the main terms of their employment.
Those legally classed as workers do not have the right to written terms if they started the job before 6 April 2020.
The legal term for this document is the ‘written statement of employment particulars’. It includes information such as pay and working hours.
This document is often referred to as the ’employment contract’. But by law, the employment contract is broader than just these written terms – for example, employment law is also part of an employee’s contract but usually the law will not be written in full in the document.
Contract terms
The legal parts of a contract are known as ‘terms’. An employer should make clear which parts of a contract are legally binding (for example, an employer must pay employees at least the National Minimum Wage)
More detailed information can be found here on the ACAS site, and here on the Government website
Derby Community Accountancy Service 