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Employment Contract

What is an employment Contract?

The employment contract is an agreement between the employee and the employer. It sets out implied and explicit terms and conditions. This means a clear understanding can be determined as a written statement of particulars as a collective agreement.

An employer must provide an employee with an employment contract or a statement of the terms and conditions of their employment within two months of their starting date.

Who can help with setting up and advising me about the Contract of Employment?

DD Payroll have a sister company called Blue Sky Brokers who will be willingto help with this task. They can be contacted at


Do I have to provide a written Contract of Employment?

The contract of employment is a legally binding agreement between an employer and their employee and is the basis of the employment relationship.

It obliges both parties to keep to the terms and conditions of the employment.

Most employment contracts do not need to be in writing to be legally valid, but it is better if they are. It is best to put a contract in writing – it saves a lot of potential misunderstanding further down the line. Simple misunderstandings over what is or what is not in a contract are one of the main causes of employment tribunal claims.

A contract ‘starts’ as soon as an offer of employment is accepted. Starting work proves that you accept the terms and conditions offered by the employer

These terms and conditions of the contract can be changed at any time by mutual agreement.

What are Implied and Explicit terms and conditions?

Implied terms and Conditions:

Examples of an implied term could include:

  • Employees not stealing from their employer
  • Your employer providing a safe and secure working environment
  • A legal requirement like the right to a minimum of 5.6 weeks’ paid holidays
  • Something necessary to do the job like a driver having a valid licence
  • Something that’s been done regularly in a company over a long time like paying a Christmas bonus

If there’s nothing clearly agreed between you and your employer about a particular issue, it may be covered by an implied term.

Explicit terms and Conditions:

Examples of an explicit term could include:

  • A date for the start/commencement of employment
  • A brief description of the work
  • The employee’s pay including rate per hour, overtime rate, the pay date, method of payment and to operate PAYE on your employee’s behalf
  • The hours of work
  • A statement regarding holiday entitlement explaining how much holiday is available, when holiday can/cannot be taken, notice requirement for time off
  • Incapacity for work stating the terms and conditions relating to sickness or injury and any provision for sick pay
  • Particulars of pensions and pension schemes
  • The amount of notice of termination of the employee’s employment they are entitled to receive from the employer
  • The amount of notice, method and timescale the employee is required to give the employer if they decide to leave
  • The disciplinary rules and procedures which apply

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