Terms and conditions of employment are
the elements of a contract which help to define the relation between an
employer and an employee. You’ll find here information on conditions of
employment, contracts of employment including fixed term, short term and temporary
contracts, contractual change, probationary periods, notice periods and
restrictive covenants.
Written statements of terms and
conditions of employment:Most employees are entitled a written statement containing the main terms and conditions of employment, however, anyone who is not an employee, for example an independent contractor or freelancer, plus certain mariners and employees who ordinarily work outside Great Britain are not normally entitled to one.
The following information should be
included in one single document known as the principle statement:
• Name of employer and employee
• Date employment and continuous
employment started
• Job location
• Pay and whether it's weekly, monthly
pay etc.
• Working hours
• Holiday entitlement
• Job description/job title
• Details of any collective agreements
that directly affect the employee's conditions of employment.
Additional information can be provided
in other documents such as staff handbooks, intranet sites on:
• Sick leave and pay entitlements
• Pensions and pension schemes
• Disciplinary and grievance procedures
• Appeals procedure under the Code of
Practice 1 - Disciplinary and Grievance Procedures.
Although there is no general legal
requirement that an employment contract should be in writing, the law requires
employees to be issued with a written statement of their main terms and
conditions of employment. This statement may be set out in one comprehensive document
or it may be provided in instalments. However, the items in the list below
marked with an asterisk must be contained in a single document. The complete
documentation must be given to the employee within two months from commencement
of employment.
·
the names of the employer and employee*
·
the date on which the employment began*
·
the date on which the employee's period of
continuous employment began*
·
Terms and conditions relating to remuneration
(i.e. scale, rate or method of calculating, and intervals at which paid and any
provisions relating to overtime)*.
·
terms and conditions relating to hours of
work, including normal working hours*
·
Entitlement to holidays, including public
holidays and holiday pay and the way holiday entitlement is calculated on
termination of employment*.
·
Terms and conditions relating to incapacity
for work due to sickness or injury, including any provision for sick pay.
·
Terms and conditions relating to pensions and
pension schemes including whether a contracting out certificate is in force.
·
The length of notice which the employee is
obliged to give and entitled to receive to terminate the contract of employment.
·
the employee's job title or, alternatively, a
brief description of the work he/she is employed to do (the latter being
required if the job title is not accurate or does not reflect the duties to be
performed)*
·
where the
employment is not intended to be permanent, the period for which it is expected
to continue or, if it is for a fixed term, the date when it is to end
·
the place of work or, if the employee is
required to or permitted to work at various places, an indication of that and
the employer's address*
·
particulars of any collective agreements which
directly affect the employee's terms and conditions (and where the employer is
not a party, the persons who are)
·
information relating to overseas employment,
including, where the employee is to work outside of the UK for more than a
month:
− The period for which he/she will work
outside of the UK.
− The currency in which he/she will be
paid.
− Details of any additional
remuneration or benefits to be paid whilst outside the UK.
− terms and conditions relating to
his/her return to the UK).
·
Certain details
relating to disciplinary and grievance procedures.
Where there are no provisions relating
to any of the matters listed above, that fact must be stated.
The written statement must contain all
the terms in full with the exception of terms relating to absence through
sickness or injury, pension schemes, notice or disciplinary procedures, as long
as the employee is referred to some other document. However, in relation to
disciplinary or grievance procedures, the written statement itself must state
the person to whom the employee may apply if dissatisfied with any disciplinary
decision or decision to dismiss, or when seeking redress of any work related
grievance. In addition the written statement must specify the manner in which
any application to that person must be made (e.g. in writing). All other
details specifying disciplinary rules, procedures, and explanations of further
steps when applying to such a person may be in another document, such as a
disciplinary policy.
All employers are required to provide
information about disciplinary rules and procedures and there is no exemption
for small employers. In particular, employers are required to provide
information about any procedure applicable to the taking of disciplinary
decisions or a decision to dismiss, although this can be contained in another
document as indicated above. This should reflect as a minimum the ACAS Code of Practice
on Disciplinary and Grievance Procedures that was revised in April 2009. An
unreasonable failure to comply with the Code of Practice could not only result
in an unfair dismissal but in an uplift of any compensation awarded to an
employee of up to 25%. Please see our Guide to Disciplinary Procedures for more
details.
If other documents are referred to in
the written statement the employer must ensure that they are reasonably
accessible to the employee, who knows where they are located and has a
reasonable opportunity to read them in the course of his/her employment.
If an existing employee requests a new
full written statement one must be provided no later than two months after the
request is made.
Over time, there will inevitably be
changes in the particulars. When this happens, the employee must be given a
written statement of the change. This has to be given at the earliest
opportunity, and in any event not later than one month after the change. This
would cover such changes as pay rises or other matters which are either agreed
or improve the terms and conditions of the employee. However, this does not
mean that the employer has the unilateral right to change employees' terms and
conditions of employment by giving one month's notice. Changing terms and
conditions of employment is a complex area and can easily lead to conflict or
even constructive dismissal; legal advice should be taken before making any
significant changes.
The statutory written statement of
terms and conditions is not in itself a contract of employment. It is issued by
the employer and will not become a contract of employment unless this is the
clear intention of both parties e.g. where it includes a statement signed by
both parties that this forms the employee’s contract of employment. If the
employee has a separate written contract of employment, this will override the
written particulars in the event of any conflict between them. A contract of
employment or a letter of engagement containing the required information will
satisfy the employer’s statutory obligation to provide a written statement.
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