Contracts of employment - common questions answered

Published 24th Mar 2011 by bathamm
Contracts of employment - common questions answered

The contract of employment is probably the most important document covering the relationship with your employees. Many employers have highly legalistic documents that they, never mind the employee, don't really understand. This can result in major problems and confusion as, if there is a dispute, Tribunals will always refer to the contract to determine the employee's and employer's rights. A clearly written contact that protects your business and makes your expectations explicit is invaluable.

Here is a selection of questions received from readers:

Is it true that I don't have to give employees a contract until they have completed their trial or probationary period?

No, it isn't. Employees must, in law, receive a contract within the first eight weeks of employment (a trial counts as employment). I always recommend that contracts are issued and signed before the employee even starts. In these circumstances, there is no doubt that the employee is absolutely clear of the terms of their employment.

I have been advised to add a paragraph to my contract giving me the facility to put employees on garden leave if I don't want them to come in to the salon during their one month's notice period. Is this a good idea?

In all my experience, I have never known an employee argue they want to work for four weeks when they can be paid for not doing so. The paragraph, however, will legally allow you to insist upon this. The notice from an employee is entirely up to the salon owner, and goes in the contract. Many salons ask for 24 hours, or a week.

I have two salons only two miles apart, and I want some of the more experienced staff to work temporarily at the other one as there has been a high turnover of employees. They are refusing. What can I do?

You haven't indicated why they have refused. It might be down to travel time, or public transport issues; it might be the fear of losing clients and commission. You obviously need to speak with the employees, and do your utmost to allay any concerns. However, the safest way to avoid these problems is to have a simple but well drafted mobility clause in your contract.

To protect my business, and limit costs, can I employ staff on a series of three-month contracts?

In theory you could, but I would advise against it. Firstly, if a contract is temporary you need to outline the reason - for example, to provide maternity cover. Secondly, temporary posts are more difficult to fill, and often employees use them as a stepping stone to a permanent job. Most importantly, after 12 months staff have the right to claim unfair dismissal and go to Employment Tribunal, and the validity of the temporary contracts would come under scrutiny. I would advise you to have a reasonable probationary period - for example, six months - and set real performance targets for the new appointee to have achieved by the end of it. It is at this point you can make a decision whether to confirm the appointment or not.

Some of my staff have said that, legally, I have to pay an enhanced rate if they work on a bank holiday. Is this correct?

No, it isn't. It is entirely up to the employer and would be covered in your contract of employment. An employer is free to pay an enhanced rate for weekend work or bank holidays, but it is not a legal requirement to do so. It is useful also to confirm your practices where staff work additional hours; is it paid at an enhanced rate, flat rate, or given back as time off in lieu?

bathamm

bathamm

Published 24th Mar 2011

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