Employment contracts

A work contract is the most important piece of paper an employer will ever give you. It will outline your role, pay, holidays and even what happens if you lose your job.

"Written contracts are concrete proof whereas verbal agreements are hard to prove."

What is a contract?

Your work contract is an agreement between yourself and your employer, outlining the terms of your employment.You and your employer are bound to the employment contract until it ends or until the terms are changed.An employer is required by law to give you the details of your employment in writing within the first two months of the job. This doesn't have to be included in the written statement of terms and conditions. It can be given in a staff handbook for example, which all employees can access.

When my boss gives me my contract, what should I do with it?

Read it carefully before you sign and if you don't understand something ask your employer. If you're not careful, you could sign away some of your most important rights.

Is there such thing as a verbal contract?

Yes – and they're just as binding as those in writing, but in a dispute over terms, a written contract is concrete proof whereas verbal agreements are hard to prove.

I'm doing shifts at the pub and getting paid cash-in-hand. Is this a contract?

If you get all - or part - of your wages paid cash-in-hand and you're not paying tax and National Insurance contributions, this is an illegal contract of employment. If you do this knowingly, you and your employer are breaking the law.If you suspect you may have an illegal contract of employment, consult your local Citizens Advice Bureau.

How can a contract be broken?

A contract may be broken if either you or your employer does not follow a term in the contract. For example, if your employer does not pay you correctly or on time. This is called a breach of contract.If your employer breaks your contract, you should try and sort the matter out with them informally first. If this doesn't work, you could try raising a grievance against your employer. There are special procedures you may need to follow if you want to do this.

My boss wants to change part of my contract. Can they do this?

If your employer wants to change a part of your contract, for example, your hours, your pay or your location, it will depend on whether your firm has recently changed hands, your contract of employment and whether you agree to the change.Your employer cannot change a term in your contract without you agreeing to it, but you may be forced to accept the change or lose your job.

If you do agree, you don't have to say anything to your employer, or even sign a new agreement. As long as you carry on working, this will be taken to mean you agree with the change.

If you do not agree with the changes, you have to tell your employer. You will have to explain why you disagree. Make sure you do this in writing, sign and date your letter, and keep a copy. Taking action against an employer over a change in the contract may mean that you could lose your job, so it's worth getting professional advice first.

What information should my contract include?

The name of you and your employer
Your job title and description of duties
Your start date. This doesn't have to be the date you actually start work; it can be the date you were hired
Length of employment, which can range from temporary to fixed term
Where the job is based, for example, whether you will have to work in more than one location
How much you will be paid before tax and how frequently.
Normal hours of work
Holiday entitlement, including how many days off you are entitled to and what your holiday pay will be, if any
Overtime policy. Check to see if it is compulsory, and if you get paid extra or get Time Off In Lieu (TOIL)
Pension scheme. If there are no pension rights, the contract must say so
Sick pay: this will tell you the amount of pay you are entitled to if you are not able to work
How much warning (notice) you are entitled to if you are dismissed and how much warning you must give the employer if you want to leave the job
What the disciplinary, dismissal and grievance procedures are in the workplace
Maternity/paternity rights
Redundancy rights

By Kara Gammell

Find out if you have a work contract and check it against the list above.
If you think there is something wrong with your contract, talk to your employer first – they may have just made a mistake.
If you still are not happy contact Citizen's Advice Bureau.

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