Contracts of Employment Terms

1. Contracts ofEmployment Terms BizFest 2019

2. Contract of Employment The employer’s opportunity to mould the employment relationship in their favour This is a missed opportunity in so many cases either because: • not issued at all • issued in the wrong way, creating problems with enforceability • poorly drafted or out of date

3. Written Statement of Particulars Currently, minimum particulars of employment must be included in a single written statement issued not later than 2 months after commencement of employment detailing at least the following: • The names of the employer and the employee (ii) The date when the employment began AND the date on which the employee's period of continuous employment began (taking into account any employment with a previous employer)

4. Written Statement of Particulars • The scale or rate of remuneration or the method of calculating remuneration • The intervals at which remuneration is paid (i.e. weekly, monthly or other specified intervals) (v) Any terms and conditions relating to hours of work (including any normal working hours)

5. Written Statement of Particulars (vi) Any terms and conditions relating to:- • entitlement to holidays and holiday pay • incapacity for work due to sickness or injury, including any provision for sick pay* (or state none), and • pensions and pension schemes* (or state none) * Reference can be made to separate, reasonably accessible documents for details

6. Written Statement of Particulars • The length of notice which the employee is obliged to give and entitled to receive to terminate the contract (viii)The title of the job which the employee is employed to do or a brief description of the work for which they are employed (ix) Where the employment is not intended to be permanent, theperiod for which it is expected to continue or, if it is for a fixed term, the date when it is to end

7. Written Statement of Particulars • Either the place of work or, where the employee is required or permitted to work at various places, an indication of that and the address of the employer • Any collective agreements which directly affect the terms and conditions of the employment (or state none) (xii)Where the employee is required to work outside the United Kingdom for a period of more than one month, additional terms must be set out (or if this doesn’t apply, this must be stated)

8. Written Statement of Particulars If any of the details change, this must be confirmed in writing within 1 month Penalty: if an employment tribunal makes any kind of award to an employee who hasn’t been issued with the minimum written particulars / written confirmation of amendments, it must award an additional 2 weeks’ pay, and in its discretion may award 4 weeks’ pay (subject to cap on weekly pay – currently £525)

9. Written Statement of Particulars Also a requirement to provide written disciplinary and grievance procedures Should be compliant with ACAS Code of Practice Recommend separate performance capability procedure Recommend non-contractual, save for express right to implement penalties short of dismissal

10. Written Statement of Particulars For all workers who start on or after 6th April 2020 • written particulars must be provided on or before the first day of work and • additional information to be included

11. Written Statement of Particulars • Working days • Whether working pattern may be variable, and if so how they may vary or how variation is to be determined • Any paid leave to which the worker is entitled, including maternity and paternity leave • Details of any other benefits • Probationary period • Training entitlement, stating if compulsory and also if employer won’t pay for it

12. Written Statement of Particulars Statutory minimum particulars are just that – a minimum Don’t just issue written particulars – issue contracts Don’t wait until up to 2 months after employee starts before issuing them – or from 6th April, the start date. Issue no later than when you offer the position If you are to issue a new contract during employment, get advice on not breaching the current contract, possible obligations to consult (including collectively) and ensuring enforceability – don’t just rely on employee consent

13. Useful provisions for employers Statutory minimum particulars are just that – a minimum Think about such things as:- • Deduction from wages • Express right to require employees to take holiday • Recoupment of excess holiday pay on termination • Recoupment of sick pay where employee is compensated • Recoupment of training costs following termination • Confidentiality

14. Written Statement of Particulars • Post termination restrictions • Mobility (right to require employee to work at different locations / right to change place of work) • Working time opt out • Obligation to undergo medical examination • Lay off / short time working • Payment in lieu of notice, limiting to basic pay • Avoiding paying full notice pay to employees absent during notice period

15. Clauses for directors In the case of directors: • Obligation to resign from office / transfer shares on termination of employment • Right to appoint people alongside or over them • Right to remove as director without affecting employment • Disqualification as director or resignation without consent will be gross misconduct

16. Policies and procedures Also additional policies, e.g. • anti-harassment and discrimination • whistleblowing • attendance • communications (including express right to monitor calls / emails / internet use) • social media • anti-bribery • data protection policies and privacy notices (required for GDPR compliance)

17. Holiday Pay Also from 6th April 2020 Pay reference period for calculating statutory holiday pay to increase from 12 weeks to 52 weeks

18. Review current contracts When were your contracts last reviewed? • Do they still refer to compulsory retirement age? • Do they still say the employee consents to data processing – have you issued every employee with a privacy notice? • When were your restrictive covenants last reviewed? • How were they implemented – are they even binding?

19. Contact John Merry, Partner john.merry@lblaw.co.uk Charlotte Morris, Associate Solicitor charlotte.morris@lblaw.co.uk