Navigating HR Technology
A free guide to how HR Technology can help and support smaller employers saving time and money
A contract of employment is a legally binding agreement between an employer and the employee.Â
KeyHR can provide your business with a variety of bespoke legally compliant contracts and agreements including:
Alternatively we can review your current contracts of employment to ensure they still comply with any changes in UK employment legislation FREE of charge.
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Contact us today for your FREE consultation and explore our affordable contract solutions tailored for SMEs!
From 6 April 2020, both workers and employees must be issued with written particulars of employment (contract of employment) from day one, or before the start of their contract / employment.
You could face financial penalties if an employee takes the matter to an employment tribunal. The fines can range from two to four weeks' pay, with a maximum award of £2,000 per employee. This is for failing to provide the basic written terms of employment.
Without a written contract, you leave yourself exposed to disputes over key terms like pay, working hours, or holiday entitlement. This can lead to costly legal battles if misunderstandings arise.
Verbal agreements or unclear terms can easily lead to misunderstandings, especially regarding notice periods, job duties, and benefits. This lack of clarity can result in friction between you and your employees.
Employees may feel unclear about their rights and responsibilities, increasing the risk of disputes. In cases of conflict, a tribunal is more likely to rule in favour of the employee if there is no written contract to clarify the terms of employment.
Failure to have the correct contract terms inplace leaves the company open to additional costs and losses such as sick absence payments, inability to recover over payments or place employees on short working in times of hardship. Â
An employment contract is a legally binding agreement between an employer and an employee. It sets out the key terms of employment such as duties, pay, working hours, and benefits, ensuring both parties are clear on their rights and responsibilities.
While not every employer needs to provide a full contract, all employees and workers must receive a written Statement of Particulars outlining basic employment terms, such as pay, hours, and holiday entitlement, by the first day of work. Failure to provide this can lead to fines of up to £2,000 per employee if taken to a tribunal.
Contracts protect both employers and employees by setting clear expectations, preventing disputes, and providing legal protection. Employers are protected through clauses like restrictive covenants, notice periods, right for short term working, overpayment recovery and confidentiality agreements.
Contracts protect your business by clearly setting out job expectations, legal obligations of both sides and outlining legal protections. It can allow you to take actions to protect and support your business that you cannot do unless they are outlined in a contract of employment such as short time working, short term lay off, overpayment recoveries & deduction from wages, confidentiality and restrictive covenants.
Contracts should be updated whenever there are changes in the employment relationship, such as promotions, changes in working hours, or job role changes. Changes in employment law or company policies should also prompt a contract review. Regularly updating contracts ensures they reflect the current working conditions and remain legally compliant.
Contracts should be reviewed periodically, especially when there are changes in employment law, company policies, or if the employee's role has changed. A yearly review is often advisable to ensure all terms are still relevant and compliant with current legislation.
Yes, any changes to the contract must be agreed upon by both parties. As an employer, you have the right to include a variation of contract clause. For instance, if an employee changes roles or requests flexible working, the contract needs to be updated in writing to reflect these changes.
Get professional advice.
If an employee refuses to sign but continues to work under the terms agreed, it may be considered that they have accepted the contract. However it is always better to ensure the contract is signed for legal protection, especially if you need to enforce any terms like restrictive covenants.
If an employee breaches their contract, such as consistently arriving late when working hours are specified, you can take disciplinary action. Clear terms in the contract make it easier to manage these situations.
Already have contracts of employment in place? We will review your contracts FREE of charge to ensure they:Â
Are you sure your contracts are legally compliant following all the changes in legislation over the last few years.
As a small employer, determining who needs a contract can be tricky. Should you issue contracts to employees, workers, or the self-employed?
Even if you consider someone self-employed, they may still be classified as a worker or employee, granting them additional rights. Misclassifying workers can expose your business to significant legal risks.
Knowing which type of contract to issue is essential for protecting your business and ensuring compliance with employment laws. Don’t leave yourself exposed to unnecessary claims.Â
A free guide to how HR Technology can help and support smaller employers saving time and money
Tackle workplace conflict early with clear policies, training, and expert HR support—save time, money, and protect your business.
Simple HR guide for UK SMEs: Stay legally compliant, protect your business, and save time with expert tips
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