Employment contracts (Crown Copyright)
All employees have an employment contract with their employer, although it might not be in writing. If you don’t have a written employment contract, your contract would have automatically been created when you started to work for your employer.
What is an employment contract?
An employment contract, or ‘contract of employment’, is an agreement between an employer and an employee which sets out their employment rights, responsibilities and duties. These are called the ‘terms' of the contract.
Your employment contract doesn’t have to be in writing. However, you are entitled to a written statement of your main employment terms within two months of starting work.
The employment contract is made as soon as you accept a job offer. If you start work it will show that you accepted the job on the terms offered by the employer, even if you don’t know what they are.
Having a written contract could cut out disputes with your employer at a later date, and will help you understand your employment rights.
You and your employer are bound to the employment contract until it ends (usually by giving notice) or until the terms are changed (usually in an agreement between you and your employer).
Employment contract terms
The terms of an employment contract set out what you and your employer can expect of each other. There are several different types and some do not need to be written down in your employment contract.
Where do contract terms come from?
Contract terms can come from a number of different sources; for example they could be:verbally agreedin a written contract, or similar documentin an employee handbook or on a company notice boardin an offer letter from your employerrequired by law, for example, your employer must pay you at least the minimum wagein collective agreements implied terms
If there's anything in your contract that you're unsure about, or which is confusing, ask your employer to explain it to you.
It should be made clear what is a legally binding part of your contract and what is not. The legal parts of a contract are known as 'terms'.
If either you or your employer breaks a term of the contract, the other is entitled to sue for breach of contract.
Terms of an employment contract
The terms of your employment contract could be of several different types, some of which do not need to be written down. You should be aware of what the terms of your employment contract are, so that you understand some of your employment rights.
Written statement of employment particulars
If you are an employee who has been working for your employer for longer than one month, you have the right to receive a written statement of employment particulars. This must be provided by your employer within two months of you starting, even if you are going to work for them for less than two months. The written statement will set out some of your main employment rights.
Contract to provide services
If you have a ‘contract to provide services’ or a 'contract for services' with someone, then this is different from an employment contract and generally means you are self employed.
A contract to provide services is an agreement between you and another person to undertake some work for them (for example paint their house). You do not become an ‘employee’ for this person - you just provide them with a service.
If you are a temporary agency worker you may be contracted with your agency under a 'contract for services'. Your agency, as an employment business, will be obliged to provide you with a written contract.
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