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
Examples of an implied term include:
- 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
If there’s nothing clearly agreed between you and your employer about a particular issue, it may be covered by an implied term.