Employment contracts

• Look for samples of written statements and contracts: contact us, or ask similar businesses you know.
• Decide the basic terms for the written statement: for example, pay, working hours, holidays and notice periods.
• Decide whether the job is permanent and whether you want to include a probationary period.
• Consider which areas may need flexibility: for example, the employee's job title and role, and place of work.
• Clarify any areas which you want to be non-contractual, such as discretionary bonuses.
• Draw up the written statement; ensure that you have included all the legally required information.
• Ensure that any other documents you refer to in the written statement are readily accessible (eg disciplinary and grievance procedures and information on company pension schemes).
• Review the job and any problems you have experienced with employees and ex-employees in the past.
• Decide whether there are any requirements for the employee (eg to hold or achieve a professional qualification or a driving licence).
• Identify any other concerns: for example, confidentiality, intellectual property or the potential for ex-employees to compete with you.
• Draw up clear instructions to us; include the basic terms and extra clauses to cover the additional contract elements you want to include.
• We will ensure that the contract is not discriminatory, does not override employee's statutory rights and is legally enforceable.
• Ask us for legal advice on any issue you are not sure about, particularly if the contract attempts to restrict employees after they leave your employment.
• Give each employee their employment contract within two months of commencing their employment.
• Explain the contract and its significance to the employee; agree the contract, and ask the employee to sign a copy.

Cardinal Rules

Do:

• find out the legal requirements for the written statement.
• identify key issues and areas of concern
• ensure that the contract is clear and achieves your objectives
• take legal advice
• get the employee to agree and sign the written contract

Don't:

• restrict your flexibility
• put it off until later