contract of employment – a legal requirement for an employer to set out what the employees terms are in a letter of employment

The term contract of employment is self explanatory being:

Contract - An agreement that is intended to be enforceable by law.

Employment - The state of having paid work. 

The government requires that the minimum information that must be stated in the contract of employment is:

• The employee’s name and job title
• The employee’s address
• The start date of employment
• The employee’s salary of wages
• The employee’s hours of work
• The employee’s holiday entitlement
• The employee’s notice period
• Details of pension scheme

Some companies add many more details, such as:

• The employee’s duties and responsibilities
• Redundancy
• Disciplinary procedures

But these are not a legal requirement.

There are some legally implied terms in this contract i.e. even though they are not stated, an employee:

• Won’t steal from their employer
• Won’t give away confidential data or trade secrets
• Exercise reasonable care and skill in performing their duties
• Should obey the lawful and reasonable orders of their employer

There are legally implied terms for the employer too, such as:

• Providing a safe place in which to work
• Not letting an employee drive an uninsured vehicle for the company
• Afford an opportunity for employees to obtain redress of any grievance

Contracts of employment are an important part of the employment relationship. They can help to ensure that both parties understand their rights and obligations and that any disputes can be resolved fairly.