Contracts of Employment

What is an Employment Contract?

An employment contract is a legally binding agreement between you, the employer, and your employee. It outlines the terms and conditions of the employment relationship, setting the framework for what is expected from both parties. A well-drafted employment contract not only protects your business but also ensures that your employees are fully aware of their rights and obligations.

What is a Section 1 Statement?

Under the Employment Rights Act 1996, employers are legally required to provide employees with a "Section 1 Statement" of written particulars of employment. This statement must be provided on or before the employee’s first day of work and forms a crucial part of the employment contract. A Section 1 Statement outlines the key terms and conditions of an employee’s job. It is not the entire employment contract but is a mandatory part of it. The statement must include certain essential information.

The Section 1 Statement must include the following details:

1. Employer and Employee Details: The names of the employer and employee.
2. Job Title and Description: The nature of the employee’s job or a brief description of their role.
3. Start Date: The date the employment begins and, if applicable, the date when continuous employment began.
4. Place of Work: The primary location where the employee will work, or if they will be required to work at various locations, this must be stated.
5. Working Hours: The employee’s working hours and days, including whether these are fixed or variable.
6. Pay and Benefits: Details of the employee’s salary or wages, the frequency of payment, and any other benefits such as bonuses, allowances, or pensions.
7. Holiday Entitlement: The employee’s annual leave entitlement, including any conditions on taking leave and the calculation of holiday pay.
8. Sick Pay: Information on statutory and company sick pay policies.
9. Notice Periods: The amount of notice that either party must give to terminate the employment.
10. Collective Agreements: Any collective agreements that directly affect the employment terms.
11. Probationary Period: If there is a probationary period, details of its length and terms.
12. Training Requirements: Any mandatory training the employee must complete.

While the above must be included in the Section 1 Statement, other information, such as details on disciplinary and grievance procedures, may be provided in separate documents, but they should be referenced in the Section 1 Statement.

What is an Employment Contract?

An employment contract is usually a more comprehensive legal agreement between the employer and the employee that goes beyond the basic terms outlined in the Section 1 Statement. It can include a wide range of additional clauses.

Additional Clauses Typically Found in an Employment Contract:

1. Confidentiality Clauses: Protects the employer’s confidential information by prohibiting the employee from disclosing confidential business information during and after employment.
2. Intellectual Property Rights: Outlines ownership of any intellectual property created by the employee during their employment, typically assigning rights to the employer.
3. Restrictive Covenants: Prevents the employee from working for competitors or starting a competing business and restricts the employee from soliciting the company’s clients or other employees for a certain period after leaving for a specified period after leaving the company.
4. Garden Leave: Allows the employer to require the employee to stay away from work during the notice period, to prevent them from joining a competitor immediately.

How We Can Help?

At Dutton Gregory, we specialise in drafting and reviewing employment contracts, including Section 1 Statements, tailored to your specific business needs.

• Contract Drafting: We provide bespoke employment contracts and Section 1 Statements customised to your sector and business requirements.
• Contract Review: If you already have contracts in place, we can review them to ensure they meet legal standards and protect your business interests.

What next?

For more information about employment law advice, please contact us at contact@duttongregory.co.uk or contact Darren Tibble as head of our employment team.