Since April 2021 all employers must issues their employees with formal written employment contracts on or before the first day of employment. Any employer failing to do so is breaching it’s legal obligations and unfortunately many employers find themselves in this situation.
The issuing of employment contracts is unfortunately often seen as an administrative burden to be passed to HR, rather than an extremely valuable contract. The median salary for a full time worker in the UK is now over £31,000 and the average length of time spent in a role is around 4.1 years. That means that in salary costs alone the average employment contract is worth £127,000, plus national insurance, pension, benefits and the employee’s productivity and profit for the business, these contracts are worth significant sums of money.
It is important therefore that employers use their contracts to help protect their business and to gain the advantage should things ever turn sour. Provisions such as confidentiality protections, restrictive covenants, intellectual property rights and many more can be included to ensure that the employer is protected as possible.
How can we help you?
Nockolds' Employment Law Team is highly experienced in advising businesses on the preparation and use of effective contracts to help protect their business and gain a competitive advantage.