Verbal contracts and written statements
24th Apr 2012

Verbal contracts and written statements

An employment contract does not have to be in writing to be legally valid. The moment an employer makes a verbal offer for an employee to start work and that verbal offer is accepted an employment contract is constructed according to the verbally agreed terms. However, the Employment Rights Act 1996 requires that an employee must be presented with a written statement of the main terms of the contract within two calendar months of starting work. The written statement must include the following:-

*Employee’s name.

*Employer’s name.

*Employer’s address

An employment contract does not have to be in writing to be legally valid. The moment an employer makes a verbal offer for an employee to start work and that verbal offer is accepted an employment contract is constructed according to the verbally agreed terms. However, the Employment Rights Act 1996 requires that an employee must be presented with a written statement of the main terms of the contract within two calendar months of starting work. The written statement must include the following:-

*Employee’s name.

*Employer’s name.

*Employer’s address

*Date of commencement of employment.

*Whether employment is temporary or permanent.

*If temporary, length of contract.

*Pay and the payment interval, i.e. weekly or monthly.

*Hours of work.

*Holiday entitlement.

*Entitlement to sick leave, including sick pay entitlement.

*Job title and/or job description.

*Place of work.

*If more than one place of work an indication of the details.

*Details of any collective agreements directly affecting the terms and conditions of the contract of employment. If the employer is not a party to such an agreement the organisation with which any such terms were agreed. This would usually be a Trade Union.

*Details of disciplinary and grievance procedures.

*A statement concerning whether or not a pensions contracting-out certificate is in force.

 

Independent contractors or freelancers are not entitled to a written statement although it would be prudent to provide a statement so that specify of terms are agreed and later misunderstandings or potential disputed are avoided.