Contracts
With certain exceptions, employment contracts do not have to be in writing. There is a valid contract so long as there is agreement over the essential terms, such as hours and wages. The lack of a written agreement can led to expensive litigation is a dispute arises. There is also a statutory obligation to give nearly all employees a written statement of certain terms and conditions of their employment within two months of starting work. Employment Contracts are essential in today’s regulated marketplace. They define the relationship between employer and employee and can also deal with matters after the contract is over.
A contract of service can be express or implied and, if express, can be oral or in writing. Whether or not an individual is working under a contract of employment will determine whether they are entitled to certain statutory rights, such as statutory redundancy payments and statutory maternity pay and the right not to be unfairly dismissed. For a contract of employment to arise there must at least exist an obligation to personally perform the work, mutuality of obligations between employer and employee, and a sufficient element of control over the employee's work. Many companies pay a person gross after receiving an invoice. This does not necessarily mean the person is self employed.
Whether an employee or employer, contracts can contain clauses to protect you, clarify ambiguity, avoid disputes and can act as an insurance device for both parties. You may wish to ensure that covenants are inserted in a contract to govern the conduct of an employee after termination of the contract, such as where he can work (restraint of trade) and with whom, (non competition). The Courts will enforce such provisions if they are carefully worded. We can assist to ensure that your contracts of employment deal with all aspects of the “master and servant” relationship, and are compliant with today’s regulations.
