Contracts of Employment - Who needs 'em?!

Since going freelance, I've worked with some amazing small businesses. They have people at the heart of what they do, they treat their team members really well and they have next to no employee issues. But as my background is predominantly HR for big companies (Walkabout, McDonald's etc), it baffles me that hardly any of my new partners have contracts of employment in place! I get it - when you're a business owner, you're busy, and if you hire great people and treat them well, what's the risk? It can seem like totally unecessary admin.

However, it is so simple to give someone a contract, and it safeguards against so many potential pitfalls in the future. I have outlined some of the key benefits in this blog.

What exactly is a Contract of Employment?

Contracts of employment set out the formal terms and conditions of employment and serve as a key document to refer to for both the employee and the employer.

Why do Contracts of Employment matter?

• Anyone who has worked with me know that I am somewhat obsessive about the importance of helping employees to feel safe and secure. Employees need this as their foundation in order to flourish in their role. Providing a clear and fair contract of employment is a key component here - the document is literally outlining and protecting the agreed working boundaries.

• It's the law! As of April 2020, employees must receive their contact of employment on or before their first day.

• Clarification for both parties. The contract clarifies how the employer and employee are due to work together. For example, the document will detail annual leave entitlement, hours of work and location of work. Having the basics like this in writing provides the discussion point to ensure there is no unexpected misunderstanding.

• Protection for both parties. Having what each party is entitled to in black and white means these rights are protected, understood and agreed. For example if you accidentally overpay an employee, you might have a clause that allows for reclaiming that money. Or you may have a clause that prevents your employee from being poached from you. Definitely worth popping in!

You can download templates for free with a quick search on google and it takes a few minutes to add in the specific details and send to your new starter. HMU if you'd like any additional support.