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Category Archives: Employment

Contracts of Employment – Advice For Employers

As a vast majority of businesses need employees in order to expand, company directors, sooner or later, have to face the process of recruiting people and familiarize themselves with the employment law. Once the selection of candidates is made and the job is offered, the law comes in the way.

Employment status

There are five categories of employment: self-employed person, worker, employee, director and contractor. As they have different legal, tax and National Insurance Number implications, employers must be aware of the differences and know which category suits their business best. For example, a person can be classified as self-employed for tax purposes but as a worker or an employee for the employment rights benefits.

Contract of employment

A contract of employment is an employee’s acceptance of the terms and conditions offered by an employer, evidence of which is commencement of the work by the employee.

The contract is often agreed verbally.

There are three types of contracts: a contract of employment, a contract for the personal performance of work and a contract for services. The person’s employment status depends on which contract has been agreed.

All employers are legally obliged to provide their employees hired for more than one month with a written statement of employment no later than two months of their start date.

The statement sets out what has been agreed between the employer and the employee during the recruitment process, such as job title and description, starting date, place of work, salary, benefits, required hours of work, holiday and sickness entitlement, notice periods, grievance arrangements and disciplinary procedures.

Often employers include in the contracts of employments sections such as confidentiality agreement and non-compete clauses.

It is also a common practice to provide new employees with the company’s Health & Safety policy, Equal Opportunities policy, Data Protection policy and other important company documents together with their employment contracts.

Directors as employees

Usually, an executive director is also the company’s employee through executive service contract.

However it is important for a business owner to establish if a director is an employee by analyzing the following key factors:

- if mutuality of obligation exists, for example, an employer’s obligation to provide work or pay during absence from work to the director and the individual’s obligations to perform work required by the employer.

- the degree of employer’s control over the individual.

- the extend to which the director is integrated in the company by adhering to its policies and procedures such as disciplinary and grievance procedures, benefits, sick and holiday pay provision.

- duration of contract.

- exclusivity of the engagement, i.e. permission to work for other companies at the same time.

- method of payment.

- if the equipment and administrative support are provided by the director or employer.

The outcome of the analysis will have impact of the director’s entitlement to his/her employment rights and tax obligations.

Conclusions

Contracts of employment exist to clarify obligations from the employer and employee and should detail benefit and entitlements due to the employee as well as list what is expected from them. It is a legal obligation in the UK for employers to provide employees with a contract of employment within two months of starting work.

Contracts of Employment | Types of Employment Contract

Employment contract is also called the employment document that regulates the employment relationship between employer and employee.  It is the right of every citizen to get job without any discrimination on the basis of age, sex, and creed. Employment agreement can be oral or in written form. However it is essential that there must a written employment agreement between employer and employee.

It is the legal and primary duty of the employer to provide the employee written statement of employment if there is no written employment agreement between them. The tribunal, court prefers the written employment agreement.

The employment agreement is made when there is:

Valid offer of the job from the employer;
Acceptance from the employee;
Consideration;
Intention to create legal relationship;
And for lawful purpose.

Employment agreement explains and defines the rights and liabilities of the employer and employee.

Employer can ask and enforce the employee to work more than 48 hours in a week. It is unlawful to dismiss the employee on basis of his refusal for working more than 48 hours in a week. Employee has a right to chose opt out 48 hours working limit if he likes to work more than 48 hours in a week.

Employment law must describe the nature of job of the employee whether it is contractual or permanent. Employer cannot waive the statutory rights and entitlements of the employee. Employee is entitles to avail statutory rights whether the agreement is oral or in written form. Written employment agreement must follow the statutory entitlements of the employee.

Employees are entitled to minimum of 5.6 weeks paid annual leave.

Employer can give the benefits to employee more than his statutory entitlements.

There are different rates of NMW for different situation. The current rates (from 1 October 2011) are:

£6.08 – the main rate for workers aged 21 and over ;
£4.98 – the 18-20 rate;
£3.68 – the 16-17 rate for workers above school leaving age but under 18;
£2.60 – the apprentice rate, for apprentices under 19 or 19 or over and in the first year of their apprenticeship.

Employment agreement can be terminated in number of ways:

Expiry of the term
Completion of the task
Breach of the contract
Dismissal
by mutual consent
By operation of law etc

Employer can also implement the employment policies in order to achieve the organisation goal. It is the duty of the employer to tell the new employee about the workplace policies so that he fulfils the provisions of employment policies in letter and spirit.

Employee must read and understand the each provision of the employment agreement. Because once it signed it becomes the legal document. Employee has the right to tell the employment tribunal in case of breach of any term of the employment agreement.

Employment agreement must never be changed without first consulting the employee. Employment agreement must tell about place of work, job description, disciplinary and grievance procedure, termination notice, intellectual property rights, leaves, payment etc.

Net Lawman provides following employment contracts. Such as:

Employment contract: standard

This employment contract is suitable for all junior and middleranking staff in any type and size of business.

Employment contract: senior standard

This is a comprehensive employment contract for senior staff. It is also suitable for staff who are likely to become senior in the short-term. It contains extensive provision for protection of your business, particularly intellectual property.

Employment contract part time standard

This comprehensive contract of employment is suitable for any part time employee. You negotiate the hours to be worked and simply edit the document by following the guidance notes provided.  You may decide the employee works two hours per fortnight or 30 hours per week.

Advice For Employers On Settling Employment Disputes

The best and most effective way for an employer to settle employment disputes ensure that they never occur in the first place. This statement can become a clear strategy that would help reduce the frequency and the intensity of disputes in the workplace, it could even help avoid an Employment Tribunal. Since most Employment Tribunal claims lodged against employers stem from perceived discrimination, breach of contract or unfair dismissal this strategy should aim to tackle these issues at the cause.

The best way to stop discrimination claims being taken before an Employment Tribunal is to try and eliminate discrimination in the workplace. This should be done by making employees aware of both the definition and likely effects of discrimination both on the perpetrators and the victims. All employees should be made aware of both the rights and obligations they and their employer has, they should understand the procedural avenues available to each party. An effective way to do this is to get all employees and management to sign anti-discrimination in the workplace agreement.

Claims of breach of contract can be mitigated against by the careful writing of such a document. If the contract can be made as clear and precise as possible this can help eliminate confusion. Employers should make their employees aware of what is expected from them both and how they hope this can be achieved. Making sure that the company has a strong set of internal procedures for dealing with difficult claims and making employees aware of these processes will help to inspire confidence and an attitude that problems can be dealt with through in-house consultation and agreement.

Claims of unfair dismissal can be avoided by regularly outlining the company’s code of conduct and the employee’s role within that. If all employees know what is a fair reason for a dismissal not only will they self-police, but they will also not behave in that way.

This strategy centres on clear and continuous communication between an employer and their employees. If an atmosphere of consultation and dialogue exists then employees will be much more willing to use internal procedures, and will have generated a faith in them.

A short video featuring my brother on people with Autism in the workplace.
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A Brief History of the Equal Employment Opportunity Commission

Article by Jeff Davis

The Equal Employment Opportunity Commission (EEOC) is a government entity created to eliminate discrimination in the workplace in the U.S. based on an employee’s race, gender, color, religion, national origin, age, disability, or gender. These “immutable characteristics” have no impact on how an employee can perform their job and cannot be used as a means to discriminate. The EEOC wasn’t always around to protect employee rights, but during the 1960′s, when integration and racial issues became heated, it was obvious that certain protections were necessary.

1963 Congress passed the Equal Pay Act of 1963 (EPA), which protected men and women from sex-based wage discrimination for performing the same job. This Act was the first national civil rights legislation that focused on employment discrimination.

Just months later, in August of 1963, almost 250,000 Americans marched in Washington, D.C. for racial equality. This was the largest protest for racial equality in U.S. history up to that time and included Martin Luther King Jr.’s famous “I have a dream” speech.

1964 The Civil Rights Act of 1964 was signed into law by President Lyndon B. Johnson and included a section (referred to as Title VII) which prohibited employment discrimination. This Act applied to private employers, labor unions and employment agencies and created the EEOC to enforce the Act.

1965 On July 2nd, the EEOC opens its doors for business. The EEOC was given a budget of .25 million and employed over 100 people.

1967 Congress passed the Age Discrimination Employment Act of 1967, which protected employees between 40 and 65 years old from employment discrimination. This Act protected older employees from being unfairly laid off, not receiving their earned health benefits and being overlooked for promotions. Since 1978 the Act even prohibited mandatory retirement in most business sectors.

1978 Congress amended Title VII by passing the Pregnancy Discrimination Act of 1978, which clarified that discrimination of a pregnant woman did indeed fall under the category of employment discrimination based on a person’s gender.

1990 The Americans with Disabilities Act f 1990 was signed into law. The EEOC became responsible for enforcing Title I of the ADA, which states that private employers, government jobs, unions and employment agencies cannot discriminate against a qualified employee or applicant due to a disability.

The EEOC continues to fight for employee rights on a daily basis. If you feel you’ve been discriminated against because of your race, gender, color, religion, national origin, age, disability or gender please contact a employment law attorney immediately to learn more about your rights.