The contractual rights of employees

Lawpack on March 27, 2020

When you hire someone, obviously you will express the major terms of their employment to them either orally or in writing. Of course, it’s preferable to detail their terms of employment in an employment contract in order to minimise future disputes; although oral terms may be just as binding as written ones, they are very much more difficult to prove.

But as well as these expressed terms, employment contracts also have what is known as ‘implied terms’ giving the employee contractual rights.

Why are implied terms not stated in the employment contract?

  • They are too obvious to be recorded
  • They are common practice within the particular business or industry and are precise, reasonable and well known
  • They are necessary to make the employment contract work
  • The parties to the employment contract have shown by their behaviour their acceptance of such terms of employment

What are common implied terms?

Your duties as an employer:

  • To pay wages
  • To co-operate with the employee and maintain mutual trust and confidence
  • To take reasonable care for the health and safety of the employee
  • To take reasonable steps to bring to the employee’s attention any contractual rights which are dependent on them taking action, but which the employee may be reasonably unaware of
  • To exercise pension rights in good faith
  • To deal reasonably and promptly with employees’ grievances
  • To give a reasonable period of notice of termination when no specific period of notice has been agreed

Employee’s duties:

  • To work for the employer with due diligence and care
  • To co-operate with the employer, including obeying lawful orders, and maintaining trust and confidence and not impeding the employer’s business
  • To follow a duty of fidelity, i.e. not compete with the employer and not disclose confidential information, unless in the public interest
  • To take reasonable care for their own safety and that of fellow employees
  • To give a reasonable period of notice of termination when no specific period of notice has been agreed

In addition to these implied terms, contract terms may be implied into an employment contract by legislation, for example, equality clauses which are implied by the Equal Pay Act 1970; these terms of employment automatically apply to any employment contract.

Contract terms may also be incorporated into an employment contract from other sources. Prime examples are terms of employment which may be implied into an individual contract through collective agreements and work rules or staff handbooks.

Are there any contract terms that are unenforceable?

  1. Unlawful terms of employment or terms contrary to public policy. For example, an employment contract which has the effect of being a fraud on HM Revenue & Customs or an employment contract under which a foreign employee works illegally without a work permit.
  2. Contract terms purporting to waive an employee’s statutory rights.
  3. Discriminatory terms of employment. For example, on the grounds of sex, race or disability.
  4. Contract terms in restraint of trade if the main purpose is to restrain competition. Such terms of employment are enforceable, however, if their main purpose is to protect something in which you, as the employer, have a legitimate business interest worthy of protection. For any such contract clause to be enforceable it needs to be carefully drafted, taking into account the nature of the employee’s work. If the contract clause is too wide, it will be void.
  5. Terms of employment which purport to exclude or restrict liability for death or personal injury resulting from negligence. In the case of loss or damage other than death or personal injury, a contract term may only exclude or restrict liability for negligence if it satisfies the requirement of reasonableness (Unfair Contract Terms Act 1977)

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Why your company needs a Staff Handbook

Lawpack on March 27, 2020

When you, as an employer, are employing staff it’s vital for you to use an employee handbook to outline in writing the practices and procedures you want your employees to follow. A Staff Handbook is an easy way to let you put the company’s staff policies into one document.

But when should your company use an employee handbook and what should it contain? We answer the all important questions about how you, as an employer, can outline your staff policies:

When should I give my employees the Staff Handbook?

All of your employees should be issued with a handbook at the start of their employment and should then confirm that they have read and understood it.

The Staff Handbook should also be referred to in your employees’ employment contracts.

Can I, as the employer, amend the staff policies mentioned in the Staff Handbook?

You can amend the staff policies in the employee handbook at any time.

What does the Staff Handbook contain?

The handbook may contain a variety of procedures and will vary from employer to employer, but in nearly all cases the employee handbook should include the following:

  • Equal Opportunities Policy
  • Disciplinary Rules and Procedures
  • Grievance Procedure
  • Health and Safety Policy

Lawpack’s Staff Handbook covers all such staff policies.

The handbook can cover all administrative issues, so it’s important that you, as an employer, consider your own needs and requirements when preparing your own.

It’s quite common, for example, that an employee handbook deals with a number of matters, such as the logistics of overtime, taking time off for holiday and public duties, and for taking care of dependants.

Your company’s Staff Handbook should also include your company’s rules on staff sickness and absence, maternity and paternity leave, and parental leave. These arrangements will vary according to your company’s needs, although they will always need to be in line with statutory rules.

If your company wants to have a more detailed staff policy, then Lawpack’s Staff Handbook can help. It incorporates the following:

  • Dismissal and Disciplinary Procedure
  • Drug and Alcohol Policy
  • Staff Email and Internet Policy
  • Equal Opportunities Policy
  • Flexible Working Procedure
  • Grievance Procedure
  • Health and Safety Policy
  • Maternity, Paternity, Adoption and Parental Leave
  • Redundancy Procedure
  • Staff Sickness and Absence Policy
  • Data Protection Policy
  • Whistleblowing Policy

Should a Staff Handbook outline the use of telephones, email and the internet?

Yes. It’s essential for you, as an employer, to outline in your employee handbook the extent to which you will tolerate the use of the telephone, email and internet for personal use.

Outlining your staff policy in your handbook not only reduces the likelihood of employees overusing the telephone, email and internet, but also if they do abuse the system, you are in a stronger position to take disciplinary action against the employee because you can point to a clear procedure in your company’s handbook which has been violated.

An email and internet policy is included in Lawpack’s Staff Handbook but Lawpack’s Staff Email and Internet Policy can also be purchased separately.

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