Does my employee need a written statement of employment?
The main purpose of the written statement of employment, often referred to as the contract of employment, is to clarify the terms of a person’s employment and avoid uncertainty or misunderstandings, where employee expectations might not be the same as employer intentions.
All employers must provide an employee with a written statement of their terms of employment within 2 months of commencement of employment, including full-time staff, part-time staff, fixed-term and casual workers.
The written statement must include the following information:
- The full name of employer and employee
- The address of the employer
- Place of work
- Job title or nature of work
- The date the employment started
- Type of contract
- Rate of pay
- Pay intervals
- Hours of work
- Paid leave
- Incapacity for work, sick pay
- Any terms relating to a pension scheme
- Period of notice to be given by employer or employee
- Details of any collective agreements
- Pay reference period
Additional clauses can be recommended to further clarify the relationship. These might include:
- Probation clause
- Pay in lieu of notice clause
- Confidentiality clause
- Right to search
- The calculation of holiday pay
Failure to to provide contracts of employment could leave you wide open to a claim from their employees. Employers found not to have written terms of employment in place will be fined a maximum of 4 weeks’ remuneration per employee. Clearly worded contracts of employment are key to the success of any business. They will ensure your business is on the right side of employment law as well as help prevent disputes with employees.
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