Definition
A legally binding agreement between an employer and employee that sets out the terms and conditions of employment. It can be written, verbal, or implied through custom and practice. A written statement of employment particulars must be provided from day one.
UK Context
Since April 2020, the Employment Rights Act 1996 requires a written statement of employment particulars to be provided on or before the first day of employment. This must include key terms such as pay, hours, holiday, sick pay, notice periods, and place of work. Additional written terms must be provided within two months.
Best Practices
- Provide a comprehensive written contract on or before the first day of employment, not just the statutory minimum statement
- Include clear clauses on restrictive covenants, intellectual property, and confidentiality where appropriate
- Review and update contracts when terms change and obtain written agreement from the employee for any variations
Frequently Asked Questions
What is the difference between a contract and a written statement?
A written statement of employment particulars is a statutory requirement setting out key terms. An employment contract is the broader agreement which includes the written statement, any other express terms, and implied terms. Best practice is to provide a comprehensive contract that goes beyond the statutory minimum.
Can an employer change the contract unilaterally?
No, an employer cannot unilaterally change contractual terms without the employee's agreement. Doing so could be a breach of contract and may give rise to a constructive dismissal claim. Changes should be agreed through consultation and documented in writing.