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Contract of Employment

A contract between an employee and an employer. The contractual arrangement does not have to be in writing, (however it is advisable). As well as written terms contained within the contract of employment, there are also implied terms that exist between the employee and the employer, such as the implied duty of mutual "trust and confidence". For the employer this means the duty to keep his or her employees safe when they are at work. For the employee it is a duty to work to the best of their ability.

Other implied terms can include those implied by collective agreements or custom and practice within a workplace and/or industry.

Any contract of employment must contain the statutory minimum that an employer is required to provide by law, for example regarding issues such as pensions, sickness and grievance & disciplinary procedures. However, employers are free to offer better terms than the statutory minimum.

(Please note that employers must have a written grievance & disciplinary policy.)

If a contract of employment is not issued under the Employment Rights Act 1996 (amended under the Employment Act 2002) an employer must provide the employee with a "written statement of terms" - this sets out the bare minimum required by law and must be given to the employee within two months of he or she starting work.

Find out what is included in a CompactLaw Employment Contract


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