How does your business deal with employment contracts? This essential part of employment law is often neglected or underused – particularly by busy, cash-strapped businesses.
But the right employment contracts, drafted in a way that’s specific to your company, can save you thousands.
The importance of contracts for employers and employees
For employees, contracts are very important. They will state many of the benefits to which they will be entitled, as well as the money that they can expect to earn. In the event of an employment tribunal, if a business is found to have not issued a complete contract then it could be fined up to a month’s pay.
And while contracts are certainly valuable for individuals, they can be just as essential to businesses. There are a number of clauses that can be inserted into a contract in order to protect a business’s interests – such as stopping employees from setting up rival organisations, poaching your staff, stealing valuable trade secrets or even reclaiming accidental overpayments.
There are plenty of employment contract templates to be found online. However, it’s essential to create a contract that’s personalised and adapted to suit your business and its goals.
How to adapt an employee’s contract
Many employers in South Wales and further afield ask us for advice on how they can adapt an employee’s contract. Generally, in the first two years of employment, an employee will only have limited ability to claim unfair treatment if their contract is amended.
However, if an employee has been working for a business for longer than two years, it becomes much harder to change a contract without risking legal action. We would recommend seeking the advice of the employee in question in a consultation.
Talk to Howells about employment contracts today
Howells Solicitors is currently offering free no-obligation reviews of staff contracts to businesses in South Wales. For more information on employment contract advice, call 0808 178 2773 today or enter your details above.
