Share Article
November 20, 2021
Understanding your contract of employment
Everyone has a contract of employment, many of us will have a printed version whilst some may never have actually been given a paper version. Regardless of if you have a verbal or written contract of employment, they are still a binding agreement between yourself and your employer.
OYour contract of employment can be tricky to understand if you’re not familiar with employment law or the various terminology, so we’ve put together a short mini-series to help you understand your contract of employment.
Here we explain the role of the contract of employment and the two different types of contractual terms.
The role of the contract of employment
You will always have a contract between you and your employer. You may not have anything in writing, but a contract will still exist. This is because your agreement to work for your employer and your employer’s agreement to pay you for your work forms a contract. Your employer does have to give you a written statement within two months of you starting work. The statement must contain certain terms and conditions.
A contract gives both you and your employer certain rights and obligations. The most common example is that you have a right to be paid for the work you do. Your employer has a right to give reasonable instructions to you and for you to work at your job. These rights and obligations are called contractual terms.
The rights that you have under your contract of employment are in addition to the rights you have under law, such as, for example, the right to a national minimum wage and the right to paid holidays.
Generally, you and your employer can agree to whatever terms you wish to be in the contract, but you cannot agree to a contractual term which gives you less rights than you have under law (we’ll be concentrating more on this later in the series).
Contractual terms
A contract of employment will usually be made up of two types of contractual terms. These are:
1. express terms
2. implied terms.
Express contractual terms
Express terms in an employment contract are those that are explicitly agreed between you and your employer and can include:
- amount of wages, including any overtime or bonus pay
- hours of work, including overtime hours (there is a legal limit for most employees on the maximum number of hours they can work per week)
- holiday pay, including how much time off you are entitled to (nearly all full-time workers are entitled by law to 28 days’ paid holiday – they may be entitled to more under their contract. Part-time workers are entitled to a pro rata amount)
- sick pay
- redundancy pay
- how much warning (notice) the employer must give you if you are dismissed.
Where to look for express contractual terms
Your express contractual terms may not be in one written document and you may have to refer to different documents. You could find that they are not written at all. The express terms may be found in:
- the job advertisement
- a written statement of main terms and conditions (see under heading Employee’s right to written details about the employment contract)
- any letters sent by your employer to you before you started work
- anything you were asked to sign when or since you started work
- instructions or announcements made by your employer on a notice board at work
- an office manual or staff handbook
- payslips.
You may not have possession of all the relevant papers. Your Personnel Department, foreman, or trade union representative may be able to give you copies. You should always keep any papers given to you by your employer.
General implied terms
The following duties and obligations will usually be implied into any contract of employment:
- the employee and employer have a duty of trust to each other. This means, for example, that if you give your employer’s industrial secrets to a competitor, you will have broken an implied contractual term of trust
- the employer and you have a duty of care towards each other and other employees. This means, for example, that the employer should provide a safe working environment for you and you should use machinery safely
- you have a duty to obey any reasonable instructions given by your employer. There is no legal definition of reasonable, but it would unreasonable to tell you to do something unlawful. For example, a lorry driver should not be told to drive an uninsured or untaxed vehicle
- your employer has a duty to pay your wages and provide work. As long as you are willing to work, your employer must pay your wages even if no work is available, unless your contract says otherwise.
Terms implied by custom and practice
When dealing with a particular employment problem, you may find there may be no express contractual term covering the matter. In this case, it is helpful if you look at what has happened to other employees in the workplace. You can argue that you also have the right under ‘custom and practice’ if your colleagues have been given this right, .
You may find it complicated to argue this right through ‘custom and practice’ but you can get support from an experienced adviser, for example, at a Citizens Advice Bureau.
We’ve sourced parts of this guide from https://www.citizensadvice.org.uk/work/rights-at-work/basic-rights-and-contracts/contracts-of-employment/
Struggling with no-shows, salary negotiations, or slow hiring? Discover real-world solutions to the biggest recruitment dilemmas
Is your business ready?
From April 6th 2025 there will be significant shift in employer National Insurance (NI) contributions, with the rate increasing by 1.2 percentage points to 15%, and a lowered earnings threshold now starting at £5,000 (down from £9,100). These adjustments could lead to higher payroll expenses for mid-sized and larger businesses, affecting hiring strategies and budgeting in 2025 and beyond. Key Details of the Change Rate Increase: The NI contribution rate for employers rises to 15%. Lower Earnings Threshold: Employers will now pay NI on earnings starting at £5,000, significantly reducing the exemption range. This change is intended to boost government revenue but will likely increase costs for businesses with lower-wage roles. Employment Allowance Adjustments: The Employment Allowance, which offers some relief on NI costs, increases to £10,500. This provides a cushion for many small businesses, particularly those employing fewer staff. How These Changes Impact Staffing and Recruitment Businesses may see these shifts reflected in higher staffing costs, particularly for mid-sized and larger firms with significant payrolls. These added expenses might influence decisions on wage increases, hiring plans, and even the type of roles businesses choose to fill. Employers should prepare for potential shifts in their budget allocations to maintain competitiveness while managing increased contributions. Preparing Your Business Planning ahead is essential. Key steps might include: Calculating projected costs to budget for the changes Evaluating workforce needs and considering the potential impact on hiring strategies Maximising allowances by confirming eligibility for the updated Employment Allowance We will be updating our blog in the coming days with a detailed breakdown and calculations, so visit us again soon!
The national minimum wage & national living wage is a legal right which covers almost all UK workers
Information to support your recruiting decisions
Stay ahead in a shifting job market with our latest insights into salary expectations, hiring challenges, and employee benefits in Staffordshire.
Why Taking 5 Minutes for Our Salary Survey Could Save You Thousands
The Outlook for HR in 2025: Trends, Challenges, and Opportunities for Senior HR Professionals
In the fast-paced world of business, the ability to secure and retain top leadership talent can make all the difference between stagnation and exponential growth. For SMEs in particular, the right leadership hires are not just crucial for filling vacancies—they are key to shaping the strategic vision, driving operational efficiency, and laying a foundation for long-term success. As we look ahead to 2025, let's delve deeper into why selecting the right leadership is more important than ever and how you can strategically approach these critical hires. Why Leadership is the Cornerstone of Business Success Leadership roles such as Finance Directors, HR Business Partners, and Operations Managers are not just functional—they are transformative. Over the years, we’ve seen firsthand how the right leaders can unlock business potential and propel organizations forward. However, the wrong hire can lead to disruption and inefficiency. Here's how these roles contribute to sustainable growth: Finance Directors (FDs): A Finance Director is far more than just a custodian of the company’s finances. They provide essential strategic insights that guide decision-making and drive growth. By identifying cost-saving opportunities, optimizing cash flow, and ensuring sound financial health, a strong FD plays a pivotal role in the profitability and scalability of a business. HR Business Partners (HRBPs): In an era where talent is one of the most valuable assets, HRBPs are instrumental in aligning human resource strategies with overarching business goals. They not only develop retention strategies but also cultivate a company culture that attracts and retains top talent. A dynamic HRBP ensures your workforce is engaged, motivated, and ready to contribute to business success. Operations Managers: The heart of operational excellence, Operations Managers optimize workflows, manage resources efficiently, and ensure that day-to-day operations run smoothly. Their impact is felt directly through enhanced productivity, cost savings, and improved customer satisfaction—all of which are integral to the growth trajectory of your business. The Strategic Impact of Leadership The right leadership hires provide more than just functional expertise—they are game-changers. Here's how they create lasting value: Strategic Vision: Great leaders inject fresh perspectives and innovative ideas into the business, helping to navigate challenges, identify new opportunities, and position the company for future success. Increased Efficiency: Proven leaders streamline operations, reduce waste, and optimize processes, which leads to higher productivity and a more cost-effective business model. Stronger Teams: Exceptional leaders inspire and attract top talent. They foster collaboration, empower teams, and build a culture of high performance that drives business outcomes. Risk Mitigation: A strong leadership team proactively addresses challenges before they escalate. They are adept at implementing contingency plans and creating stability during periods of uncertainty. The High Cost of a Bad Hire In our extensive experience working with SMEs, we’ve seen firsthand how damaging poor hiring decisions can be. Not only do you risk impacting team morale and productivity, but you also face significant financial consequences. Research shows that a bad hire can cost as much as three times the employee’s annual salary, considering recruitment costs, training, and lost productivity. For SMEs, these costs can be crippling, making it imperative to approach leadership recruitment with precision and strategy. How to Secure the Right Leadership Talent 1. Define Your Needs with Precision: Before embarking on the recruitment process, clearly outline the specific skills, experience, and qualities required for the role. This ensures the candidate will not only be a technical fit but also align with your business goals and values. 2. Prioritize Cultural Fit: Leadership is about influence, and a leader who shares your company’s values will integrate seamlessly into your organization. They will inspire your team and create a harmonious work environment conducive to growth. 3. Leverage a Confidential Recruitment Partner: Engaging with a specialist recruitment consultancy that has a deep understanding of leadership roles ensures access to a broader, more diverse talent pool. Confidentiality in this process is essential, particularly when you are hiring for high-stakes leadership positions. 4. Use Data to Inform Your Decisions: Utilize salary benchmarking and competency assessments to make data-driven hiring decisions. These tools ensure your offers are competitive, attracting the best talent while mitigating the risk of overpaying. 5. Invest in Onboarding: A successful leadership hire starts with a structured onboarding process that enables the new leader to quickly adapt and deliver results. A robust onboarding strategy sets the stage for long-term success. Real Success Stories from Strategic Leadership Hires At Appointments Personnel, we have had the privilege of helping over 100 SMEs secure leadership talent in the past year alone. The results have been nothing short of transformational: A Finance Director helped a growing manufacturing business cut costs by 15%, improving profitability through strategic budgeting and financial oversight. An HR Business Partner implemented a company-wide retention strategy that reduced turnover by 30%, saving the business significant recruitment costs. An Operations Manager overhauled logistics and operational processes, reducing delivery times by 20% and significantly boosting customer satisfaction. Additionally, we’ve witnessed how having an expert second opinion during the hiring process can make a game-changing difference. One of our clients almost overlooked an exceptional Finance Director candidate due to an internal review misstep. With our insight, they hired the candidate, who went on to increase revenue by 25% within the first year. The Power of Confidential Recruitment When it comes to leadership hires, confidentiality isn’t just a matter of discretion—it’s a competitive advantage. Whether you’re replacing a key role or expanding your leadership team, maintaining confidentiality ensures that sensitive information is protected and business continuity is preserved. Emma and I understand the importance of this better than anyone, having worked on confidential roles ranging from Finance Directors to HR Business Partners and Operations Managers. With our bespoke, confidential recruitment services, you gain a trusted partner committed to sourcing the leadership talent that will drive your business to new heights in 2025 and beyond. Contact Emma Bonfiglio to book a confidential meeting - Emma@appointmentspersonnel.co.uk
If you can't get to work because of the snow, it may reduce your pay as you may be forced to take unpaid leave.