Contracts? Not just nice to have!

Did you know that it is a legal requirement that all of your employees have a written contract of employment in place within 2 months of them starting to work for you?

Did you also know that if your employee damages any of your Company equipment, you can’t automatically deduct the cost of the repairs from their pay?


According to current legislation, it’s really easy to get caught out.  There’s a piece of legislation called the Employment Rights Act 1996 which states  that an employee has to expressly agree in writing to you making such deductions from their pay before you can do so.  As you know, computers and other company equipment can be very expensive to repair or replace and unless you have it in writing and agreed by the employee then you can’t get your money back.
What safeguards do you have in place if your employee has access to your client information?  Or they decide to go into direct competition with you?
Employment contracts are an area of business which sometimes gets overlooked but what you have to ask yourself is, if you were going into a business venture, you would have terms of business which outline what is required of you and your relationship with your client so why wouldn’t you do the same with your employees?  In both instances, they lay out the working relationship and how the business arrangement will operate and can safeguard your business.
Whilst this is the legal standpoint, it’s important to note that if you don’t have a written contract of employment  in place, and an employee takes you to an Employment Tribunal then you could be fined for hundreds of pounds.  You can safeguard your business by having a written statement of particulars in place which supports your business goals and protects your business interests. Don’t get caught out!

If you would like to find out more, give Sue Green a call on 07951 356700.