October 2024

Don’t Let Outdated Staff Contracts Put Your Business at Risk

We can’t stress this enough—staff contracts are non-negotiable. Without them, you leave your business vulnerable to legal battles, confusion, costly mistakes, and wasted management time. Disputes around staff contracts drain energy from your business, making it harder to focus on growth and productivity. Time is ticking, and every day without properly structured, compliant staff contracts puts your business at risk.

Let's start with: What is a staff contract?

A staff contract is a legally binding agreement between an employer and an employee, setting out the agreed terms of their working relationship. It can be written, verbal, or even implied by the actions of both parties. However, while verbal agreements can be legally valid, they leave a lot of room for misunderstandings and disputes. Without a written contract, it becomes much harder to prove the agreed terms, such as pay, hours, or responsibilities. A written contract ensures clarity and protection for both the employer and the employee, reducing the risk of miscommunication or legal challenges later on down the line.

The risks of not having an up-to-date staff contract

A staff contract isn’t just some dull paperwork—it’s crucial protection for both you and your employees. Verbal agreements can leave gaps, creating potential risks. Without a written contract, proving agreed terms becomes difficult, leading to disputes over pay, hours, or responsibilities.

• Legal Disputes: Without a signed contract, you risk costly challenges from employees, impacting time, money, and reputation.

• Confusion and Misunderstanding: Clear contracts prevent blurred expectations around working hours, pay, and duties, reducing frustration and poor performance.

• Compliance with Law: Legislation, such as day-one rights, needs to be reflected in contracts. Failure to update increases the risk of non-compliance and employee disputes.

The key elements of a staff contract

Here’s what your contracts must have to stay compliant:

• Job Title and Description: Clearly define roles to avoid miscommunication.

• Start Date and Probation Period: Leave no doubt about when employment begins.

• Salary and Payment Terms: Detail pay structure to avoid disputes later.

• Holiday Entitlement: Be clear about leave entitlements to prevent future issues.

• Notice Period, Data Protection, Disciplinary Procedures, Restrictive Covenants—it’s all got to be in there!

The Essentials from RfM Transform

We know you’re busy running your business. That’s why we handle everything for you:

• We meet with you, tailor the contracts, handle the legalese, and deliver ready-to-implement documents.

• Our team keeps you compliant, so you don’t get caught off guard by changing laws.

• Staff handbooks are a key part of compliance—we can help ensure they’re up to date and aligned with current legislation.

Act Now Before It’s Too Late!

With recent changes in employment law, and more on the way, your staff contracts and handbooks must be updated immediately. Don’t leave it to chance. Our HR Essentials service makes sure you’re protected and compliant, so you can get back to what you do best—running and growing your business.

+more Changes to Statutory Sick Pay (SSP) Effective April 2024
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