Posted on May 31, 2010.
Labor law. Employment contracts, advice for employers Since the vast majority of businesses require employees to expand, business leaders, sooner or later face the prospect of recruiting people and become familiar with labor law. Labour Law, in collaboration with discrimination and the legislation on data protection all have a role to play in the recruitment process.
Employment status
A person may be an employee or self employed. Both have different legal, tax and national insurance contribution consequences, and employers should be aware of these differences to know what is best for their business category. For example, a person may be classified as self-employed for tax purposes, but as an employee for purposes of employment rights.
Work Contract
Usually, a job is offered in a letter but it is not uncommon to be offered verbally. It is important that the letter is made subject to the terms of employment of the company and Conditions. However, once employment begins, an employer shall give the employee a written statement of particulars of employment within two months after the employee starts work. The declaration sets out the conditions agreed between the employer and the employee as the job title and description, start date, place of employment, salary, benefits, hours of work required, holidays and the right to health, periods of notice, the procedures for grievance and disciplinary procedures. Often employers to include in contracts of employment confidentiality provisions, covenants and other provisions.
It is also common practice to provide new employees with company health and safety policy, equal opportunities policy, data protection policies and other important documents of the company with, and referred to their employment contracts
Contract services
A contract of service is a contract whereby a person undertakes to provide another with a service, but not necessarily conducted by that person personally. A service contract is generally used by self-employed or between an agency worker and the agency.
Directors as employees
A company director is an office and not a job. However, the company may enter into a service contract with a director and such director is an employee of the company. If this is the case, the company must provide to the Executive Director an employment contract. It should be noted that the office of a director has different tax and National Insurance contributions of the implications of an employee.
Conclusions
Employment contracts are to clarify the rights and employment, as obligations.They should detail the benefits and fees owed to the employee and to define what is expected of them.
It is a legal requirement in the UK for employers to provide employees with a contract of employment within two months of starting work. Despite their compulsory nature, employers should understand that they are very beneficial for a company. For example, they can be used as a locking mechanism of highly qualified staff members in a given period of time, forcing them to offer a greater period of notice. Ultimately, employment contracts should not be perceived as another piece of paper work, but as a device to protect and strengthen a company.