What is in an Employment Contract?(continued)
Click on a section number to go straight to a description or read the full article.Employment Contract – Changing & Terminating a Contract
Employment Contract – Changing & Terminating a Contract1. 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
Example:
The Employee will work from: 453 High Street, Newtown NEW12
5. You should clearly state the employee’s salary or hourly rate in this section and details of ‘when’ their wages will be paid (monthly, weekly, etc). In addition, you need to state how their wages will be paid (BACS, cheque, etc) and give details of any requirements from the employee to make payment possible (for example a personal bank account).
Example: The Employee’s salary is £17,000 per annum. Payments are monthly by BACS directly in to your bank account. If you do not have a bank account you will need to open one.
6. Give details of the employees work hours and the days that they are required to work. You should also state what break periods the employee is given. If you feel that the employee may be required to work outside of the contracted hours, you should bring this to their attention and indicate the rate of pay (if this is the same as the current rate or different). You should be aware that there is legislation controlling the amount of working hours for an employee: currently for a person aged over 18, this is 48 hours per week.
Example:
The Employee’s working week will consist of 40 hours, from Monday to Friday and from 9 am to 6pm. There is a 1 hour lunch break: timing to be agreed with immediate supervisor.
From time to time, the Employee may be asked to work outside of the contracted hours. An hourly rate of 1.5 times the normal hourly rate will be paid.
For more details visit our Working Hours – Employee Hours & Break Entitlement 7. A full time employee is entitled to 4 weeks holiday entitlement each year (excluding bank holidays – which an employer can choose to give the employee time off for). Part time employees will be given holiday entitlement on a pro-rata basis. You should clearly state how much holiday entitlement the employee is entitled to for each year of employment.
Example:
The Employee is entitled to 4 weeks (20 days) paid holiday per annum. At the end of 5 years service an extra days holiday entitlement is given – followed by a further 1 days holiday entitlement for each of the next 4 years service: bringing maximum holiday entitlement to 5 weeks (25 days).
For more details visit our Working Hours – Notice for Paid Holiday 8. If an employee has been ill for a period of 4 consecutive days, the employees are entitled to statutory sick pay (SSP) up to a maximum of 28 weeks. However, it may be put into the contract that the employee will continue to receive their normal salary during periods of illness (contractual sick pay). The employer may even decide to offer the full amount less the payment of statutory sick pay.
Contractual Sick Pay: the Employee will receive their normal salary for a period of 4 weeks, in any 12 month period where a doctor’s certificate is produced after 7 consecutive days sickness. Payments will be less Statutory Sick Pay and any Social Security benefits due to the Employee.
For more details visit our Working Hours – Statutory Sick Pay
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