Employment Contracts & Policies Employment Contracts & Policies

Considering employment documentation and ensuring that it complies with legal requirements can be complex and seeking early advice is advisable.

Contracts and Policies

Employment contracts and workplace policies are essential tools for defining the rights and obligations of both employers and employees. These documents must comply with statutory requirements and reflect the mutual agreement between the parties.

Employers are also required to implement policies that address workplace wellbeing, equality, and safety.

An employment contract sets out the legal terms of the working relationship. It can be: -

• Written (best practice and usually expected); and/or
• Oral / implied (terms can arise from what is agreed and how the job operates in practice)

A contract typically includes core terms (pay, hours, role) and also rules about how issues are handled (notice, discipline, grievances, confidentiality).

Why contracts matter?

Aside from the key reason that an employment contract is a legal requirement, there are many reasons why there should be a written contract, including: -

• Employers: clarity, consistency, risk management, easier onboarding and performance management
• Employees: certainty on pay/benefits, working time, expectations, protections if things change

What are workplace policies?

Policies are written rules and procedures that support day-to-day management. They may be:

• Contractual (binding like contract terms), or
• Non-contractual (guidance the employer can update more easily).

Good documents clearly state which policies are contractual and how updates will be communicated.

Common Policies

Common policies include:

• Disciplinary and grievance
• Equal opportunities / anti-discrimination
• Anti-harassment and bullying
• Sickness absence and sick pay
• Family leave (maternity/paternity/adoption/shared parental)
• Health and safety
• Data protection and privacy
• IT, email, internet and monitoring
• Expenses and travel
• Whistleblowing
• Social media
• Training and professional development

Health and Safety policies - Employers have a duty to ensure a safe working environment under the Health and Safety at Work etc Act 1974. This includes assessing and managing risks related to stress and other workplace hazards. Employers should regularly review their health and safety policies to ensure compliance.

Practical Tips for Employers

• Keep contracts and policies consistent (avoid contradictions)
• Use plain language and define key terms
• Ensure restrictive covenants are tailored to role/seniority
• Make sure managers follow the stated procedures (consistency reduces disputes)
• Keep version control; dates, who approved, how staff were notified

Practical Tips for Employees

• Ask for clarity on anything unclear
• Check whether key policies are contractual and where to find them
• Be cautious with clauses on mobility, deductions, monitoring and post termination restrictions
• Keep copies of the contract, offer letter, and the latest policy handbook.