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What is an Employment Contract?

If an employee is taken on for more than one month, by law, they are entitled to a written contract within two months of initial employment. The employment contract may not cover all aspects of the employment details but should outline all of the important terms and conditions.

An employment contract is an agreement to the terms and conditions of employment – agreed by both the employer and employee. In principle, a contract is created as soon as a person agrees to work for the employer whom may have previously outlined the conditions of employment (pay, hours, etc).

Even if the employee does not serve two months of employment, they are still entitled to a copy of the contract if the job was originally meant to last longer than one month.


What is Included in an Employment Contract?

The employment contract should contain details of the following:


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1. Names of both the employer and employee
2. Starting date of the employee
3. Job title and description
4. Address of the workplace(s)
5. Details of pay – hourly rate/salary and when it is paid (weekly/monthly)
6. Hours worked each week
7. Holiday entitlement
8. Sickness entitlement
9. Details of any pension schemes
10. If the employee is to work overseas – the period that they will work overseas and the currency in which remuneration will be paid for this period.
11. Grievance arrangements
12. Termination of Contract Notice
13. Redundancy
14. Disciplinary procedures
15. Signatures of both the employer and employee


Notes:
1. You should clearly state the employer’s name and address, in addition to the employee’s name and address.

Example:

Between: ACME ACE LIMITED (the ‘Employer’)
15 Town Road – Anytown – AT65 Y66

And: JOHN SMITH (the ‘Employee’)
12 Smalltown Road - Midshire MRT 5EW

2. This is the starting date of when the person will begin employment.

Example:

Employment Start Date: 26th November 2003

3. The employee’s job title and description should be clearly outlined in this section. It is not necessary to write a long description: however enough detail should be given so that it is clear to both parties.

Example:

The Employee’s job title is: Production Controller

The Employee’s main task is to assist the Production Manager in maintaining a consistent flow of production.

4. The full address of the workplace is written in this section. If the employee is required to work in more than one location, all of the addresses need to be given.


Article Index
 
1 Introduction
2 Employment Contract
3 Employment Contract (continued)
4 Statutory Rights