When it comes to hiring employees, it is crucial for employers to draft a clear and concise employment contract. A well-written contract ensures that both the employer and the employee are on the same page in terms of expectations, duties, and responsibilities. However, there are certain statutory terms that must be included in every employment contract, according to the law.
Statutory terms are legal provisions that are automatically included in every employment contract, regardless of whether they are explicitly stated in the agreement. These terms are designed to protect employees` rights and ensure that they are treated fairly in the workplace.
Here are some of the key statutory terms that must be included in every employment contract:
1. Pay: The contract must state the employee`s rate of pay, how often they will be paid, and what deductions will be made from their salary. Employers must also comply with the minimum wage laws and pay their employees at least the legal minimum wage.
2. Hours of work: The contract must specify the employee`s normal working hours, breaks, and rest periods. Employers must also comply with the maximum working hours regulations and ensure that their employees are not overworked.
3. Holidays: The contract must state the employee`s entitlement to paid holidays and any rules surrounding the taking of holidays. Employers must comply with the minimum annual leave entitlements specified by law.
4. Notice: The contract must state the amount of notice that the employer and employee must give each other in the event of termination of employment. Employers must comply with the minimum statutory notice periods.
5. Discrimination: The contract must contain a statement that the employer will not discriminate against the employee on the grounds of age, sex, race, religion, or disability. Employers must comply with the anti-discrimination laws.
6. Health and safety: The contract must state that the employer has a duty to provide a safe working environment and that the employee has a duty to comply with health and safety regulations.
7. Data protection: The contract must specify how the employer will handle the employee`s personal data.
In addition to these statutory terms, there may be other clauses that employers choose to include in their employment contracts, such as non-compete clauses or confidentiality agreements. However, it is important to note that these clauses must not contravene any of the statutory terms or any other laws.
In conclusion, including the statutory terms in an employment contract is not only a legal requirement but also a crucial step in protecting both the employer and the employee. Employers must ensure that their contracts comply with the statutory terms and any other relevant laws to avoid legal and financial penalties. It is also recommended that employers seek legal advice when drafting or amending their employment contracts to ensure that they are legally valid and protect the interests of both parties.
