Q: I own a small business employing less than five people. Do I really need to bother with contracts of employment for my staff? One of my employees is a member of my family- my brother-in-law, we are good friends.
A: Many small businesses think that as they may only employ a small number of staff, including family members, that they do not have to issue contracts of employment. This is a dangerous belief for an employer to hold.
There may be nothing put in writing formally but when an offer of employment is accepted, a contract will exist. It is imperative that the contract is in writing in case of future dispute. You may have a falling out with your brother in law. He may say you agreed terms that you do not recall agreeing. A written contract would state what
terms you agreed.
The very least that employers must do is to issue all employees with a statement of particulars within two months’ of them starting work. This is a legal requirement. If an employer fails to do this, at a later date if an employee brings a tribunal claim against the employer, the employee can also include their employer’s failure to provide information as part of their claim. They will be awarded a sum of compensation in this
regard.
The statement of particulars need not be one document. It could refer to other documents, for example, the staff handbook. However, an employer must provide certain information by law, including but not limited to, date employment commenced, rates of pay, holiday entitlements, job title, normal place of work. This document is known as the principal statement.
Employers should also provide basic employment policies, for example, disciplinary and grievances procedures. This ensures that both parties are fully aware of how certain matters will be dealt with. Such information should ideally be detailed in a staff handbook but could be annexed to the contract.
The staff handbook is an important document in its own regard. Although it is not part of the contract of employment, a staff handbook can give guidance and can assist in highlighting what is expected of an employee. There is no legal requirement to provide employees with a staff handbook but it is a useful format as it can cover company policies and emphasize expected standards.
If you have any questions regarding employment contracts, policies and handbooks and how they effect your business please call Antoneta Fernandes at our Bingham Office on 01949 830 813 or email afernandes@fraserbrown.com.
Fraser Brown is a dynamic law practice working at premises in Nottinghamshire through its branches in Nottingham, Radcliffe on Trent and Bingham.
Its philosophy is to deliver superior legal advice through a personal and highly professional service for both commercial and private clients. Since 1990, Fraser Brown has acquired eight established and respected local firms as part of its major growth strategy for doing business in the 21st Century.
Fraser Brown is one of the region's longest established firms of solicitors. Over the last 12 months, it has experienced significant growth in areas such as property, contract work, construction and general litigation.