How important are staff contracts to your business?

Surprisingly often overlooked, an employment contract is an important piece of legislation between an employer and their employee/s. A valid UK employment contract is a legally binding agreement that defines an employee’s conditions, rights, responsibilities and duties in the workplace. In addition, an employment contract provides guidelines and expectations which must be fulfilled and upheld by both parties of the agreement. 

Without a valid employment contract, an employer has no legal basis to enforce their expectations and the employee is not properly informed of their basic rights or expectations of the company. By ensuring that every employee has a personalised and comprehensive UK employment contract which adheres to new General Data Protection Regulations from May 2018, an employer can create a strong and legal foundation in which to build a sustainable company on. For small to medium sized businesses, this is especially essential. 

It is always sensible to create written employment contracts as verbal contracts are usually invalid and are difficult to contest should a conflict occur. Written contracts are clear and non-ambiguous for both parties, plus by ensuring that the employment contract is clear and easily accessible to both parties, it is less likely that any disputes will arise as both parities are aware of what is expected from the employment relationship. 

A clear contract sets up a solid foundation for your employment relationship with your employee/s and ensures that everyone is on the same page, knowing what they can expect from you and your company as well as what they are expected to provide and are responsible for in return.

Note: this post was originally written for an event with The Business Centre (Cardiff) and Peninsula and can be found on The Business Centre (Cardiff)’s blog here.

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