Most employers think that they’re being clever by not issuing a contract of employment – what could the harm of that be? Is there even a penalty for not issuing a contract of employment? The answer is actually quite a lot of risk involved. Here is a short guide as to why you must issue one, no matter how much you don’t want to…
- It’s the law!
- Notice periods
- Gardening leave in employment
- PILON (Payment In Lieu Of Notice)
- The financial side
Download our free guide now to read the full article!
Reason 1 (but not the most important one!): Not Issuing A Contract Of Employment Is Against The Law!
Since April 2020 the law has become a lot stricter about issuing written contracts of employment. You now have to give employees a contract of employment by the end of their first day of working for you. It used to be within two months of them starting.
What is the penalty for not issuing an employment contract? Immediately, nothing. But if they take you to tribunal for any other reason (unfair dismissal, discrimination, etc) then it will be added on to their claim and will cost an extra 3 or 4 weeks money. It will also be a sign, for the Court, that you are not “fulfilling your obligations under employment law” and will be a black mark against you. The penalty for not issuing a contract of employment could be as little of a few hundred pounds at tribunal to thousands of pounds and losing your case.
Even if you don’t issue them with a written contract, they have a verbal one: you have offered them a job, they have accepted, they turn up to work for you in the expectation of getting paid, and you pay them.
The law is even more specific since April 2020. You now have to have all paid benefits, statutory or otherwise, written in the contract. If you used to pay company sick pay “at your discretion” that is no longer possible. Holidays, pensions, medical insurance, etc have to be in there. Even statutory benefits, that you have no influence over such as statutory sick pay and maternity pay, have to be in there. This is to enable employees to potentially compare what they are paid, for equal pay purposes.
You cannot stop employees from comparing their contracts and benefits for equal pay purposes, but you can if it is unrelated to discrimination. For example a woman and man, doing the same job, can compare contracts and benefits. Two white men doing different jobs could not without you being able to discipline them for breach of confidentiality.
If you don’t issue an employment contract, other legal protections still start. For example, protection from discrimination on the basis of: gender, gender reassignment, marital status, pregnancy & maternity, age, race, religion, disability, sexual orientation) starts from the recruitment stage, with or without a contract. Employees also accrue annual leave, with or without a contract.
You also should be aware that you cannot get an employee to sign away, in an employment contract, their legal rights.
You can’t get them to agree that if they are sick, that they do not need to be paid anything. If you try and impose less than the statutory minimum, they will always apply in any dispute, so what’s the point of trying to do so? Employees have access to a lot of free legal advice, so they will find out what you are trying to do fairly easily and then your business will be in trouble. Save yourself the hassle and at least stick to the legal requirements, for your safety and bank balance!
Reason 2: Notice Periods
One of the most important reasons why an employer should issue an employment contract is the notice period. The penalty for not issuing a contract of employment is that the statutory minimum notice periods will automatically apply, and they are amazingly short.
In the first month of employment they are instantaneous on both sides.
After the first month of service, the minimum notice period for the employee to give you is just one week. It doesn’t matter how long they’ve been with you, they only ever have to give you one week’s notice. Even if they have been with you for ten years, they would still only need to give you one week’s notice.
This will obviously be a problem if they are a valued employee and decide after 10 years that they want to go, they give you one week’s notice, and then take their outstanding holiday leave during that week. You would instantly be without your employee but there would be nothing legally you could do about it.
The statutory minimum notice periods are not the same for employers. You need to give them 1 week’s notice for every completed year of service up to a maximum of 12 weeks.
You cannot get an employee to sign away, in an employment contract, their legal rights. Whichever notice period is longer will apply, contractual vs statutory.
If you have your own contract you would normally say, after someone has completed their probationary period, that they would be on a month’s notice. If they are more senior you might even make it 3 months, so that if they decide to leave you could have some time to find a replacement.
The added silver lining is that if you have a longer notice period and an employee walks out and refuses to work it, you would not have to pay it at all.
So if you don’t want to be left in the lurch, you need to put an adequate notice period in the contract. Also make sure that it says “in writing” to stop spur of the moment resignations/firings being treated as valid, which in the heat of the moment they were, but in the cold light of day (and having to pay mortgages) they aren’t.
Reason 3: Gardening Leave in Employment Contracts
There is no legal right, unless it is in the employment contract, to send an employee home instead of letting them work out their notice. This would apply when somebody has either resigned or you’ve given them notice. If you have a clause regulating this in your employment contract, you can then decide whether you are going to make them work their notice or whether you would rather send them home.
You might put them on gardening leave if you feel there could be problems with them being at work or you don’t think they’ll be motivated. They aren’t allowed to work for someone else, though they can look for work, but effectively they are being paid to sit at home in the garden.
We would normally recommend that if you have given them notice, that they are then put on gardening leave. If they have resigned, then do ask them to work their notice period.
As you have not issued a contract of employment, it means that you don’t have a paragraph in their contract saying you have the right to put the employee on gardening leave. If you do put them on gardening leave or pay them in lieu of notice, you will be removing their right to provide you with work, which is a breach of contract.
The cost of the penalty for not issuing a contract of employment? An extra 3-4 weeks pay awarded against you if it came to court.
You could also have an employee who insists on their right to come in and work – which could be at the best awkward and at worst damaging for the business, especially if the employee is acquiring information that they shouldn’t or bad-mouthing you, their employer, whilst in the office.
Reason 4: PILON (Payment in Lieu of Notice)
Another good reason for giving them a contract is that you might want to give staff who are leaving payment in lieu of notice (PILON). This means that you terminate the employment immediately, issue the P45, and just pay them for the notice you do not want them to work – you unfortunately always have to pay the notice.
We usually use PILON when the employer has given notice. If the employee has given notice, then we usually make them work it.
Most employees are usually happy to have the PILON option, but you need to have that in the contract, otherwise some troublesome employees may sue you for breach of contract, as well as anything else, because you have done something that is not in their contract…
Reason 5: Financial penalty for not issuing a contract of employment
What if I have forgotten to give out a new contract by the end of the employee’s first day of employment? Is the employee entitled to compensation?
There is a set amount of compensation due if you have failed to provide a written statement of employment particulars (more commonly known as a contract of employment). This financial penalty is capped at two or four weeks’ basic pay. For 2021/22, that equates to £1,088 or £2,176, but most tribunal awards are for the lower amount.
“Basic pay” – is the cap that the government puts on compensation payments. It changes every April. It is more often used in statutory redundancy pay calculations as the cap on a week’s pay. In 2021/22 it is £571/week.
However, employees do NOT have an automatic right to compensation, despite there being a set amount due for not issuing a contract of employment. Employees have no right to bring a “stand-alone claim” against an employer for failure to provide a contract of employment.
This means that any claim for not issuing a contract of employment MUST be attached to another type of tribunal claim, e.g. unfair dismissal, unlawful deductions from wages or discrimination, AND that claim must be successful.
So, as long as you issue a contract as soon as you realise your mistake, no employee has any right to demand any compensation, and you effectively dodge the financial penalty for not issuing a contract of employment
If you have any other queries about employment, visit our FAQs page or call us on 01491 598 600 for a FREE 15 minute phone call. Looking for Golf HR?
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매력적인 곳으로 손님들에게 다양한 프로그램과 서비스를 제공하고 있습니다.
부산룸싸롱사이트를 통해 간편하게 예약을 할 수 있어 시간을 절약할 수 있습니다.
또한 부산고구려도 많은 이용자들로부터 좋은 후기를
받고 있어 룸싸롱을 찾는 이들에게
인기를 끌고 있습니다.
해운대고구려와 부산룸싸롱은 다양한 가격대를 제공하고 있어 개인의 취향에 맞는
선택이 가능합니다. 해운대룸가격을 비교하고
적정한 가격에 맞는 서비스를 선택할 수 있습니다.
또한 해운대고구려40페이와 같은 이벤트를 통해 손님들에게 다양한 혜택을 제공하고 있어 더욱 많은 이들의
관심을 끌고 있습니다.
마지막으로, 해운대고구려와 부산룸싸롱은 색다른 경험을 원하는 이들에게 좋은 선택지입니다.
안전한 환경과 다채로운 프로그램으로 손님들의
만족도를 높이고 있으며, 편리한 예약 시스템을
통해 손쉽게 이용할 수 있습니다. 해운대와 부산을 여행하는 동안 특별한 추억을
만들고 싶다면 해운대고구려나 부산룸싸롱을 방문해보는 것은 어떨까요?
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Pharmacology’s Role and Drug Development in Modern Society
Pharmacology, the science of drugs and their effects
on living systems, plays a pivotal role in modern society.
With an ever-increasing burden of diseases and health conditions, the development of new medications is vital for improving healthcare outcomes
and enhancing quality of life. This article explores the significance of pharmacology and the process of drug development in addressing contemporary health challenges.
**Understanding Pharmacology:**
Pharmacology encompasses a multidisciplinary approach, combining aspects of biology, chemistry, physiology, and pathology to study how drugs
interact with biological systems. It delves into the mechanisms of action, therapeutic effects, and potential side effects of medications.
By comprehensively understanding these factors, pharmacologists strive to develop safer and more effective
drugs for treating various ailments.
**Importance of Drug Development:**
The development of new drugs is essential for combating both prevalent and emerging health threats.
Chronic diseases such as cardiovascular disorders, cancer, diabetes, and respiratory ailments continue to impose a significant burden on global health.
Moreover, the emergence of novel pathogens, antimicrobial
resistance, and environmental factors further underscore
the need for innovative pharmaceutical solutions.
**Phases of Drug Development:**
The journey from drug discovery to market availability is a
complex and rigorous process comprising several distinct phases:
1. **Drug Discovery:** Scientists identify potential drug candidates through various means, including screening natural compounds, designing molecules
using computational methods, or repurposing existing drugs for
new indications.
2. **Preclinical Research:** Promising drug candidates undergo extensive laboratory testing to assess their safety, efficacy, and pharmacokinetic properties in cellular and animal models.
3. **Clinical Trials:** Drug candidates that demonstrate favorable preclinical
results advance to clinical trials, which consist of three sequential phases:
– **Phase I:** Involves testing the drug’s safety and dosage in a small group
of healthy volunteers.
– **Phase II:** Evaluates the drug’s efficacy and side effects in a larger group of
individuals with the targeted disease or condition.
– **Phase III:** Further assesses the drug’s safety and efficacy in a diverse population across
multiple locations to establish its therapeutic benefits and
risks.
4. **Regulatory Approval:** Following successful completion of clinical trials, pharmaceutical companies submit comprehensive data to regulatory
authorities such as the FDA in the United States or the EMA in Europe for approval to market the drug.
5. **Post-Marketing Surveillance:** Even after
approval, ongoing monitoring is crucial to detect any unforeseen adverse effects and
ensure the drug’s continued safety and efficacy in real-world settings.
**Challenges and Future Directions:**
Despite significant advancements in pharmacology and drug development, several challenges
persist. These include escalating research and development costs, regulatory hurdles, ethical considerations,
and the increasing complexity of diseases.
Additionally, disparities in access to medications
and healthcare services remain a global concern.
Looking ahead, emerging technologies such as precision medicine,
gene editing, and artificial intelligence offer promising avenues for personalized therapies and targeted drug development.
Collaborative efforts among researchers, clinicians, pharmaceutical companies,
and policymakers are imperative to address these challenges and harness the
full potential of pharmacology in improving
global health outcomes.
In conclusion, pharmacology plays a central role in modern society
by driving the development of new medications to combat a myriad of health
challenges. Through continuous innovation and collaboration, the field of pharmacology holds
immense promise for enhancing healthcare delivery
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Банкротство: задачи и этапы. Важные особенности процедуры.
Банкротство – это сложный и многоэтапный процесс, который может оказаться как последним шансом для должника восстановить свою финансовую стабильность, так и способом защитить интересы кредиторов. В данной статье мы рассмотрим основные задачи и этапы банкротства, а также выделим важные особенности данной процедуры.
**Задачи банкротства:**
1. **Защита интересов кредиторов:** Одной из главных задач процедуры банкротства является обеспечение честного удовлетворения требований кредиторов. Банкротство позволяет упорядочить очередность погашения долгов и минимизировать риски для кредиторов.
2. **Восстановление финансовой стабильности:** Для должника банкротство может стать возможностью начать все с чистого листа. Процедура позволяет решить проблемы с долгами и переосмыслить финансовую стратегию.
3. **Уменьшение юридических проблем:** Банкротство часто сопровождается судебными разбирательствами и требует аккуратной работы с юридическими аспектами. Целью процедуры является минимизация рисков возникновения дополнительных юридических проблем.
**Этапы банкротства:**
1. **Подача заявления:** Вся процедура начинается с подачи должником заявления о банкротстве. После этого начинается судебное разбирательство и оценка финансового состояния должника.
2. **Объявление о банкротстве:** После тщательного анализа финансовой ситуации суд может принять решение о банкротстве. Это означает, что должник признается неплатежеспособным и начинается процедура ликвидации его активов.
3. **Ликвидация активов и урегулирование долгов:** В этом этапе осуществляется реализация имущества должника с целью погашения задолженностей перед кредиторами. Важно отметить, что распределение средств происходит в строгом соответствии с законом.
4. **Завершение процедуры:** После того как все активы должника будут реализованы и долги урегулированы, процедура банкротства завершается. Должник освобождается от долгов, которые не были погашены в результате ликвидации активов.
**Важные особенности процедуры:**
1. **Соблюдение законодательства:** Банкротство регулируется законом и требует строгого соблюдения всех его норм и положений.
2. **Прозрачность:** Весь процесс банкротства должен быть максимально прозрачным как для должника, так и для кредиторов. Это помогает избежать возможных конфликтов и споров.
3. **Юридическая экспертиза:** В силу сложности процедуры банкротства требуется квалифицированная юридическая поддержка как со стороны должника, так и со стороны кредиторов.
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