The legal parts of a contract are known as ‘terms’. An employer should make clear which parts of a contract are legally binding.
Contract terms could be:
- in a written contract, or similar document like a written statement of employment
- verbally agreed
- in an employee handbook or on a company notice board
- in an offer letter from the employer
- required by law (eg an employer must pay employees at least the National Minimum Wage)
- in collective agreements - negotiated agreements between employers and trade unions or staff associations
- implied terms - automatically part of a contract even if they’re not written down
If there’s nothing clearly agreed between you and your employer about a particular issue, it may be covered by an implied term - for example:
- employees not stealing from their employer
- your employer providing a safe and secure working environment
- a legal requirement like the right to a minimum of 5.6 weeks’ paid holidays
- something necessary to do the job like a driver having a valid licence
- something that’s been done regularly in a company over a long time like paying a Christmas bonus
Step 1 Check your business is ready to employ staff
Step 2 Recruit someone
You need to advertise the role and interview candidates. You can use a recruitment agency to do this or do it yourself.
As an employer you must make sure you recruit employees fairly.
and Check they have the legal right to work in the UK
and Find out if they need a DBS check
Step 3 Check if they need to be put into a workplace pension
You have ongoing responsibilities to check if your employees need to be put into a workplace pension scheme.
Step 4 Agree a contract and salary
When someone accepts a job offer they have a contract with you as their employer.
Step 5 Tell HMRC about your new employee
You must tell HMRC about your new employee on or before their first pay day.