Why issue Employment Contracts?

There are many reasons why you need to issue contracts of employment. All of them help you the employer rather than the employee. You could get away with not giving people employment contracts. If you don't issue your own contract, the default Employment Law will apply to the employees. And as we all know, Employment Law tends to support the employee's rights rather than the employer's rights.

If you have your own contracts you can at least change some of those things, which will be better for you and your business.

Interview with a Small Business Owner on the need for employment contracts
Listen to our podcast interview with a small business owner on the benefit of having employment contracts. Find out how they can protect your business.

Reason 1: Notice Periods in Employment Contracts
The statutory notice periods are shorter than you think and different for employee and employer.

Reason 2: Gardening Leave in Employment Contracts
Many employers assume that they can send employees home once they have resigned - this is not the case!

Reason 3: Payment in Lieu of Notice
Employers can't just give employees their notice pay to get them off the payroll if it is not in the employment contract!

Reason 4: Redundancy
They are angry about redundancies - if you have a clause in your contract you can send them home to avoid causing trouble at work.

Reason 5: Clarity
Things work so much better when people know what they are entitled to and what is expected of them!

Reason 6: Employee Rights
Employee's have rights, even if you don't issue a contract, and without a contract you will not be able to amend these rights!

Reason 7: The Law
Employment Law says very specifically when to issue a contract by, and there will be an additional award against you if you do not do so!

Reasons 8: Holiday Pay
Even if you think that employment law is protecting you, "oral" employment contracts regarding holiday pay can be very expensive!