3 Reasons Why You Should Provide a Contract of Employment to Your Employees
As an employer there are certain duties that you will be expected to undertake including setting up a PAYE scheme and providing your employee with a contract of employment. A contract of employment will form the foundation of any working relationship, so it’s important to get it right.
What is a contract?
A contract or contract of employment is an agreement between you and your employee, which lays out the:
- Rate of pay (we recommend this is stated in Gross terms)
- Working hours
- Rights (e.g. Holiday Entitlement/ Statutory Sick Pay/ Statutory Maternity Pay)
- Employment Conditions
It is important to remember that everything detailed in the contract must abide by employment law. For example in the UK you must pay your employee at least minimum wage and give them the holiday they’re entitled to. Visit Stafftax’s Rates and Thresholds page, or for help calculating your employees salary use the Net to Gross calculator.
Why should I provide a contract?
1. Your Employee has a Right to Receive a Contract of Employment
All employees in the UK are entitled to receive contract of employment within 8 weeks of their start date – this is no different for household/ domestic staff. An employer may become subject to legal costs if they failed to provide this.
*Please note that as of April 2020 an employer will be expected to provide a statement of written particulars, by the first day of employment. Details of what must be provided in a statement of written particulars can be found here.
2. It Clearly Lays out the Duties and Responsibilities of Your Employee
The contract should clearly outline the responsibilities and duties that your employee will be expected to undertake. This enables the employee to have a clear understanding of what is expected of them and provides opportunity to raise any queries or concerns about the role. It will also protect both you and your employee if any of those expectations aren’t met.
3.They Help Prevent Conflict and Mitigate Risk
Having a contract in place will act as a point of reference throughout the time your employee is working for you. If there was any uncertainty regarding something in particular, there would be no need to dispute this as the contract should detail both the employer and the employee’s rights and obligations.
Stafftax are our recommended service provider for payroll. As part of their comprehensive payroll service Stafftax offers its clients a free HR service, providing advice, support and a free bespoke contract of employment.
Stafftax have been providing professional payroll services, employment contracts, workplace pensions and trusted HR advice to thousands of domestic employers for more than 15 years. If you’d like support or guidance on these matters, the Stafftax team will be happy to assist.
If you want a personal referral from Polo & Tweed, then get in touch with us, and we’d be delighted to make a personal introduction.