Terms and conditions of employment - overview

A contract may be set out in a formal contract of employment, or its terms may be verbally agreed and later set out in the letter of offer. "Contract" can mean a particular written document(s), or it can mean a written document as well as implied terms and conditions.

A contract of employment between the employer and the employee exists from the time the employee accepts an offer of work. It is advisable to make an offer conditional on the satisfactory receipt of references and any other pre-requirements, such as a satisfactory criminal record bureau check.

The contract itself is made up of several different sources, including statutory terms implied terms, express terms, custom and practice, case law as well as the written statement of particulars. It is the written statement of particulars that is generally referred to as the contract.

It is good practice to give every employee the written statement of particulars outlining the key terms and conditions of employment at the time an offer is made so there is no ambiguity about the benefits and obligations.

In any event the Employment Rights Act 1996 requires that a written statement of the main terms and conditions must be provided within 2 months of employment.

Contracts

A contract may exist if the terms have been agreed verbally.

It is usual for a verbal offer of employment to be made initially and then followed up by the formal written statement. Where a verbal agreement has been reached and not followed up in writing, there is a risk that each party has a different understanding of what has been agreed.

A good written statement provides clarity on rights and expectations.

Different types of contracts are used depending on the type of employment. For people employed by the organistion, these types include:

Full-time or part-time (both can be either permanent or temporary)
Fixed-term
Short-term
Sometimes annualised or zero hours

Another type of contract (usually called a contract for services) would be used by an organisation if a person were genuinely self-employed or working on a consultancy basis.

Useful external links:

Reviewed and updated by the HR Services Partnership – April 2010.

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