6 Reasons Why Your business should use an Employment Contract

1. All employees (who have been working for you for longer than one month are entitled to receive a written employment contract. This must be presented to the employee within 2 months of their start date. Even Director’s are entitled to an employment contract although this is often to referred to as a Director’s Service Agreement.

2. If a business fails to provide an employment contract within the required time an employee could make a claim to an employment tribunal and, if successful, the Employment Tribunal (not the employer) will determine what particulars should have been given to the employee and what they should have said.

3. If an employee takes your business to tribunal for another reason, like unfair dismissal, the tribunal can make an additional punitive award of 2 to 4 weeks salary, if you have failed to provide your employee with an employment contract.

4. An employment contract sets out the main terms and conditions of employment such as pay, sick pay, notice period, working hours and holidays etc…meaning that both the employee and the business will both know where they stand, reducing the risk of misunderstanding, disputes and of course employment tribunals.

5. There has been a 56% rise in accepted employment tribunal claims between 2009 and 2010, meaning the chances of you, the employer, being taken to tribunal are increasing significantly every year.

6. You can purchase a good employment contract for less than £40 off of the shelf, which is significantly less than you stand to lose should your business be taken to employment tribunal.

Try the TheCareerCafe.co.uk Employment Contract UK 2019. This is a downloadable, easy-to-use and customizable employment contract template  app that enables you to construct a tailor-made UK employment contract for your business and comply with employment regulations in the UK.