Many small businesses take people on with a handshake and a quick chat about pay. It feels simple at the time, but it can cause real problems later, especially if things go wrong and the employee makes a claim.
Do I have to give my employees something in writing?
Yes. Employers must give every employee and worker a written statement of their main terms on or before their first day. This has been the law since April 2020.
What does the written statement need to include?
The main points are:
- the employer’s and employee’s names, the start date and the job title
- pay, and how often it is paid
- working hours and days
- holiday entitlement and holiday pay
- sick leave and sick pay
- notice periods and any probation period
- where the person will work
Some details, such as pensions and training, can follow within two months.
What happens if I don’t give one?
If an employee brings another claim at the employment tribunal and wins, the tribunal can award them up to four extra weeks’ pay because they never received written terms. It also makes it much harder for you to prove what was agreed.
Do I need a staff handbook as well?
It is a very good idea. Clear written disciplinary and grievance procedures help you deal with problems fairly. If you don’t follow the Acas Code of Practice when dismissing someone, a tribunal can increase any award by up to 25%.
What should employers do now?
- Check every member of staff has written terms, including part-time and casual workers
- Update contracts when someone’s pay, hours or job changes
- Have simple written disciplinary and grievance procedures
- Carry out right to work checks before anyone starts
Right to work checks matter too. Employing someone who does not have the right to work in the UK can lead to a fine of up to £60,000 for each worker.
How we can help
At Reen Anderson Solicitors, we prepare clear, practical employment contracts and staff handbooks for business owners, and we defend employers at the employment tribunal when things go wrong. Getting the paperwork right at the start is far cheaper than sorting it out later!
If you would like to talk anything through, call us on 0207 101 2628 or email info@reenanderson.com.
This article is general information about the law in England and Wales, not legal advice on your situation.