Employment documents

Section 230(2) of the Employment Rights Act 1996 defines the employment agreement as contract of service or apprenticeship. The line of demarcation between contract of service and contract for service is that:

Contract of service: An employer – employee contract is called contract of service.

Contract for service: A contractor – client contract is called contract for service.

Employment agreement is made between employee and employer which contain their employment rights, duties and responsibilities. Employee is entitled to avail all statutory rights that are attributed to employee in absence of written employment contract (express contract). Employment Rights Act 1996 imposes the legal obligation on employer to provide written terms of employment to employee within two months of the starting work in absence of written contract. The offer letter, or employment contract, could be your principal statement or full written statement. There is no need for employer to give employee a separate written statement if everything is covered in either of offer letter or employment agreement.

A contract of employment is not different form the other kind contracts. Employment contract comes into existence when:

• An offer is made from the employer;
• Acceptance from the employee
• Consideration;
• Intention to create legally binding agreement.

Equality Act 2010 provides the opportunity to every UK national to get job without any discrimination on the basis of sex, race, age etc.

There is a minimum right to paid holiday, but your employer may offer more than this. You are entitled to a minimum of 5.6 weeks paid annual leave – 28 days for someone working five days a week (capped at a statutory maximum of 28 days for all working patterns). Part-time workers are entitled to the same level of holiday pro rata (so 5.6 times your usual working week, e.g. 22.4 days for someone working four days a week).

There are different rates of NMW for different situation. The current rates (from 1 October 2011) are:

• £6.08 - the main rate for workers aged 21 and over ;
• £4.98 – the 18-20 rate;
• £3.68 - the 16-17 rate for workers above school leaving age but under 18;
• £2.60 – the apprentice rate, for apprentices under 19 or 19 or over and in the first year of their apprenticeship.

If you are 18 or over and wish to work more than 48 hours a week, you can choose to opt out of the 48 hour limit. This must be voluntary and in writing. It can’t be an agreement with the whole workforce.

You shouldn’t be sacked or unfairly treated (for example refused promotion or overtime) for refusing to sign an opt-out.

Contract for services means you are self employed. Contract for service does not create the any relationship of employee and employer. 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’.

The employment Act 2008 repealed the three steps disciplinary and grievance procedure. Now the employer can set up their own disciplinary and grievance procedure but it mandatory to follow the spirit and principles of ACAS disciplinary and grievance procedure code of practice.

It is advisable that employment contract must be in written form because it is the basic employment document.

Employment agreement can be terminated in number of ways:

• Expiry of the term
• Completion of the task
• Breach of the contract
• Dismissal
• by mutual consent
• By operation of law etc

Net Lawman provides the following types of employment agreements. Such as:

Employment contract
A complete employment contract suitable for all staff below director level in an organisation of any type or size. The contract provides strong protection for the employer organisation. The employee may be full time, part time or temporary.

Casual employment contract (zero hours)

This is a comprehensive employment contract for casual workers. Sometimes known as a casual work contract or a zero hours contract, it places no obligation on the employer to provide work, and pay and benefits are pro rated in line with hours worked. This casual employment contract covers all legal requirements for information to be given to an employee and provides strong protection for the employer organisation.

Fixed term employment contract
A comprehensive employment contract for any organisation that employs staff on fixed term contracts, whether for projects, seasonal increases in work or to cover full-time employees on leave. It is a superb framework for fair, full and easily understood protection of the employer and compliance with organisational requirements.

Non-executive director’s service agreement
This non-executive director’s service agreement is a contract for services of a self-employed, part-time director. It makes clear no contract of employment. It can be used for a fixed term or a running contract for a company director, or director-level equivalent in a charity or other organisation. It provides particularly strong protection of company information.

Directors service agreement (employment contract)
This directors service agreement is a complete legal and practical framework for the employment of any executive director, whether on a running contract or on a fixed term. It is an employment contract for senior level staff that also defines the relationship between the director and the organisation. Provision for remuneration and common benefits is included, as is strong protection of company information.

Unpaid non-executive director’s service agreement
This non-executive director’s service agreement is a contract for services for an unpaid, part-time director. It makes clear no contract of employment. It can be used for a fixed term or a running contract for a company director, or director-level equivalent in a charity or other organisation. It provides particularly strong protection of company information.

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