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Contracts

Terms and conditions of employment

When you start work you will have to agree various things with your employer, such as the hours you are expected to work, your rate of pay and how much time you can take off.

These are known as terms and conditions of employment.

You have a right to receive written terms and conditions of employment within two months of starting a job.

Your contract of employment

  • Terms and conditions of employment which you and your employer agree, are considered as a contract
  • This contract can be in writing or a spoken agreement or a combination of both
  • It is preferable - for both employer and employee - that at least part of the contract should be in written form
  • This is because a verbal agreement, although legally binding, can be difficult to enforce if there is not enough proof it has taken place
  • You need to agree the terms of your contract, and so it is important not to sign anything until you are happy
  • You can try to negotiate changes to the contract (although in practice this may sometimes be difficult to do)
  • Contracts of employment are legally binding and so cannot normally be changed unless both sides agree
  • While you are employed, if your employer makes changes to your contract without your agreement you can (once your employment is terminated) seek compensation from your employer for breach of contract. You would do this by making a complaint to an Industrial Tribunal
  • You may also be entitled to resign and make a complaint of constructive or unfair dismissal to an Industrial Tribunal
  • 'Constructive dismissal' is when there is a calculated strategy of victimisation to force an employee out of his/her job
  • If a change in your contract results in a loss of pay, you may complain under the terms of the Wages Act to an Industrial Tribunal. There is a three month time limit for this kind of complaint
  • Although a contract of employment does not have to be in writing, the Trade Union Reform and Employment Rights Act 1993 says that anyone working one month or more must receive a written statement of their employment particulars from their employer
  • Employment particulars should include:
    • Your job title
    • Where you are expected to work
    • Your hours of work
    • How much, when and how you will get paid
    • Details of holidays and whether they are paid or not
    • Other leave arrangements (such as sick leave and maternity or paternity leave)
    • How much notice your employer must give if your contract is being terminated
  • If you don't receive a written statement within two months of starting work you can make a complaint to an Industrial Tribunal
  • If any terms and conditions of employment change your employer must tell you in writing as soon as possible and at the latest within one month of the change

Rights for young workers

  • On the 1st October 1998, the Young Workers Directive came into force in the UK
  • It gives young workers new rights to maximum working hours, minimum daily and weekly rest breaks, restrictions on night work and minimum rights to paid holidays
  • A Young Worker is defined as someone who is over compulsory school leaving age but who has not yet reached 18
  • For information and advice contact your local Low Pay Unit at your local council

Ending your employment

  • If your employer ends your employment, or if your contract of employment has ended you are entitled by law to be given notice
  • If you have worked with your employer for at least one month but less than two years, you will be entitled to one week's notice
  • If you have worked for three continuous years you are entitled to three week's notice and so on up to a maximum of 12 years (when you are entitled to 12 week's notice)
  • You can take disputes about the notice you are given to an Industrial Tribunal
  • Jobcentres also have a free booklet called Rights to notice and reasons for dismissal (leaflet no. PL707) which explains all this in more detail
  • Contracts at work can also include what is called 'custom and practice agreements'. This means that what is normal practice in an organisation and approved by management may also be part of your contract, even though it is not written. So if everyone at work usually gets an extra two days holiday at Christmas, but this is not in the written contract, it may still be part of a contract between you and the employer because it is normal practice
  • You also have other employment rights in law (known as your statutory rights). Have a look at our section on this

Illegal contracts

  • There are certain types of contract which are illegal
  • Conditions are illegal where payment is all or partly 'cash-in-hand' and where no Income Tax or National Insurance is paid when it should be
    • If you get a contract like this get advice from your local Citizens' Advice Bureau or call the Employment Rights Service.

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