Why Every Employee Must Have a Contract of Employment

Owning, running and managing a business comes with a long list of responsibilities. One of these responsibilities is employment, which comes with its own processes and obligations for you as a business owner. Every employee must have a contract of employment. Here’s why:

When you employ someone, you have a statutory obligation to provide them with a written Contract of Employment on or before their first day of work. Too often businesses treat this as just a compliance exercise – but relying on a basic template, or worse, no contract at all, leaves your company unprotected.

A well-drafted contract does far more than meet legal requirements. It sets out the terms of employment, from pay, hours, and holiday, through to notice periods and confidentiality. It also gives you the chance to define an employee’s duties and responsibilities, so there is no misunderstanding about what’s expected.

Just as importantly, the contract can link to your company policies on areas such as absence, conduct, health and safety, or use of company property. This provides your employee with clear guidance and direction from the start – helping them succeed and protecting your business if problems arise later.

Think of the contract not as a piece of paperwork, but as the foundation of the employment relationship. Done properly, it safeguards your business and gives your employee the clarity they need to thrive.

Get in touch with Jonathan, who can help you with your contracts of employment. Contact him here.