Employment Contracts

Why it can cost thousands if employers fail to provide them

“It’s OK, I have a verbal contract, so nothing to worry about!”

How many times have I heard that?

Well, there is something to worry about because the law states that an employer must give employees and workers a document stating the main conditions of employment when they start work. Whilst not strictly an employment contract it’s more or less what everyone considers and refers to as a contract.

For those lucky enough to have a written statement of terms of employment, it must contain certain terms and conditions as set out in the Employment Rights Act. They must be given on day one of employment. Other terms must be given within two months of starting work, but the majority of the time they are all grouped into one ‘contract’ and issued on day one.

So, quite often when I speak with employers and ask if they have contracts, they give me the answer above and they think it’s fine as it is.

After all what is an employee or worker going to do if they don’t have one?

They can go to a tribunal and ask that it sets out the terms and conditions they work to, based on the evidence from the employer (if they turn up) and the employee. That’s hardly going to put the fear of God into an employer, there’s no financial penalty at this point, so why bother?