Key Legislation Underpinning Employment Contracts

The Employment Rights Act 1996 underpins contracts of employment in the United Kingdom.

The terminolgy to use is a written statement of particulars of employment. This summarises the main particulars of the employment relationship and must according to the legislation be given within two months of the person's first day of service.

Whilst the law states two months it would actually be poor form to encourage a person to give up an existing job or prior state of affairs without actually presenting them with the contractual terms of their new role until two months after it has started. The law is quite flexible but if we are truly focused on the quality of the engagement with the prospective member of staff the written statement of particulars really should be issued as soon as possible after the decision to appoint has been made.

Issuing the written statement of particulars at the earliest point means the person is aware of what they being contracted to and can clarify any uncertainties before accepting. Starting a relationship in this manner where possible helps ensure a more harmonious contract.

The key aspects of a written statement of particulars are as follows:

  1. The names of the employer and employee.
  2. The title of the job which the employee is employed to do or a brief description of the work for which they are employed.
  3. Where the employment is not intended to be permanent, the period for which it is expected to continue.
  4. Either the place of work or, where the employee is required or permitted to work at various places, an indication of that and of the address of the employer.
  5. The date when the employment began.
  6. The date on which the employee’s period of continuous employment began (taking into account any employment with a previous employer which counts towards that period). The continuous employment date is often the same as the start date. Where it is earlier this may give the new starter certain employment rights that come with longer service.
  7. The scale or rate of remuneration/pay or the method of calculating this.
  8. The intervals at which remuneration is paid (that is, weekly, monthly or other specified intervals).
  9. Any terms and conditions relating to hours of work.
  10. Entitlement to holidays, including public holidays, and holiday pay.
  11. How incapacity for work due to sickness or injury will be handled, including any provision for sick pay.
  12. Pensions and pension schemes.
  13. The length of notice which the employee is obliged to give and entitled to receive to terminate his contract of employment.
  14. Any collective agreements which directly affect the terms and conditions of the employment. In large organisations trade unions negotiate with the employer on behalf of staff, the agreements they reach with the employer are called collective agreements.

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