Employment contracts are absolutely vital. Not only do they ensure employee rights and safeguarding, but they also work to protect companies and avoid any unforeseen disputes or disagreements between a business and its staff. However, employment contracts can be complex. They must be used properly and effectively to see the full scope of benefits they can offer. We’ve listed five scary mistakes that you definitely don’t want to make with your employment contracts. Keep reading to find out more.
Non-compliance with the law
The law stipulates a number of laws and requirements that employers must adhere to if they wish to hire and employ staff. For full-time and part-time contracts, employers must provide staff with the statutory minimum of paid holidays, statutory sick pay, paid maternity and paternity leave, and regular pay slips detailing all deductions.
Failure to adhere to the relevant laws in an employee contract can have serious consequences, even leading to legal action in some situations.
Not updating contracts
Employment law is regularly changed and updated to meet the needs of modern businesses and staff. This means that employment contracts must be frequently review and amended to observe any changes in the law. Using old or outdated contracts can result in you breaching employment law and can negatively impact your business.
Changing contracts without agreement
There can be many reasons for changing or altering an employment contract, not including compulsory changes due to the law. The progression and development of a business can necessitate changes to a contract, as can an individual employees’ particular needs or requirements.
Before any changes are made, an agreement must be reached between the employer and the employee, where all changes are fully understood and approved. Generally, changes must be agreed to within one month of coming into effect.
Wider written statements
The law requires that employers must present employees with a written statement of particulars when they start work. This should include basic details about the job including working hours, locations, and salary.
However, employees must also provide staff with a wider written statement within two months of an employee starting work. This should include details regarding pension schemes, disciplinary procedures, and any additional training opportunities.
Failure to provide or problems with wider written statements can result in staff lodging complaints or even taking employers to a tribunal.
Post-employment restrictions
Post-employment restrictions are particularly important for industries that deal with sensitive or classified information. Outlining post-employment restrictions in contracts can prohibit employees from revealing or otherwise using valuable information or assets after they have left the company.
General confidentiality restrictions are the most common type, they will stop employees divulging information after leaving their post. Non-solicitation and non-dealership restrictions are also seen often, these will prohibit employees from approaching or doing business with existing company clients after they have terminated their contract.
Make sure you have restrictions in place to safeguard your business.
Conclusion
Employment law and contracts can be difficult to navigate. Regular changes to the law require constant review and alterations. However, their importance cannot be understated, failure to utilise employment contracts effectively can lead to severe consequences.
To learn more about what should be involved in your employment contract, then contact MM Legal today.
