11 November 2005
Over half of all UK employers questioned in a recent survey were not certain that all their employees had been issued contracts of employment.
Although employment contracts do not have to be in writing, employers are required to give each employee a written statement of particulars of certain contractual terms no later than two months after the employee commences employment:
- Names of the employer and employee
- Date upon which employment commenced
- Date upon which continuous employment commenced
- Details of remuneration and when it will be paid
- Hours of work
- Holiday entitlement
- Sick pay provisions
- Pensions provisions
- Notice employee is required to give and entitled to receive
- Job title and description
- Details if the position is not permanent
- Details of any applicable collective agreements
- Particulars relating to work outside the UK for a period of more than one month if applicable
Employers can meet their obligations by providing an employee with the requisite details in an offer letter and/or other documents, but it is easier for employers to do so in a contract of employment.
The Statutory Dispute Resolution Procedures were implemented in October 2004 and introduce minimum disciplinary and grievance procedures. Employers must provide details of their disciplinary and grievance procedures or refer to a document where the details can be found.
If an employee brings a claim against an employer, including unfair dismissal, discrimination and breach of contract claims, and the Tribunal finds in favour of the employee and, the employer failed to provide that employee with a written statement of particulars, the Tribunal must increase any award by an automatic penalty of 2 weeks’ pay, and may increase any award by 4 weeks’ pay.
Employers should be aware that failure to comply with the minimum statutory procedures could result in an increase of any award made by a Tribunal, against an employer by up to 50%.