Release date: May 2003

Although employers are not obliged to give employees a contract, employers however must provide a statement of terms. A properly drafted employment contract offers many advantages to the employer by clearly stating certain details and by including policies that are not needed by law but are beneficial to the employer, such as;

• recoup training fees, once an employee has had training that has been paid-for, some costs may be recovered if the employee leaves the employment within a specified time;
• restraint/non solicitation covenants can be enforced to prevent former employees, particularly at a higher level, operating in the same field of business for a limited time, or soliciting staff and customers;
• the employer can state a probationary period without penalty if the employment does not work out;
• the job description can be broadly based in order to avoid the implication that adjustments will result in a fundamental change to the employment relationship;
• expenses, benefits, and perks can be set out so that there is no misunderstanding;
• agreements made in the contract represent all the agreements made with the employee, so that there cannot be subsequent allegations of additional verbal agreements of increases in salary, promotion, or change of responsibilities etc;
• the employer can limit the duration of the contract and provide for renewal periods.

Chris Wiper heads an experienced commercial team at Close Thornton Solicitors, providing practical and professional advice on a broad range of legal issues. This article is not intended to be an exhaustive statement of the law or a substitute for seeking specific advice. For further information please contact Chris Wiper on 01325 466461 or email chris.wiper@close-thornton.co.uk.

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