Updating author: Olga Aikin

On this page:
Summary
Future developments
Practical example (1)
Practical example (2)
Action point checklist
Key references
Questions and answers
The parties
The work
The wage
The hours
Holiday
Place of work
Sickness benefits
Confidentiality and restraint clauses
Intellectual property
Notice
Policies and procedures
Superseding and other terms
A note on the Contracts (Rights of Third Parties) Act 1999

Summary

4.309

• Contract terms do not have to be reasonable. 
• All the requirements of the employer should be covered. 
• Groups of companies may need the power to transfer employees between the group companies.  (See 4.311 The parties)
• Work should be defined and any power to change the work be clear.  (See 4.312 The work)
• The remuneration package, including any overtime pay and any bonus, should be set out.  (See 4.313 The wage)
• Hours, including overtime, should be identified.  (See 4.314 The hours)
• Holiday entitlement should be specified.  (See 4.315 Holiday)
• Location should be identified and any mobility requirement specified.  (See 4.316 Place of work)
• If there are other benefits, such as sickness benefits, these should be included.  (See 4.317 Sickness benefits)
• Restraint clauses are enforceable only if they are reasonable. 
• Notice clauses must provide for the statutory minimum period. 

It is not possible to produce a list of all the possible terms an employer might consider putting into a contract of employment.  This section deals with some of the more common terms.  But the general principles illustrated are not restricted to the terms described and can apply equally to other terms. 

With rare exceptions, such as restraint of trade clauses, contract terms do not have to be reasonable and the courts and tribunals do not see it as their responsibility to ensure that the parties have a fair contract.  They enforce the terms the parties have agreed. 

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Future developments

4.310 Working Time Directive: Following the failure of member states, the European Parliament and the European Commission to reach an agreement on the European Parliament’s proposal to remove the working time opt-out, the opt-out will remain. Some member states, including the UK, insisted that the opt-out is essential, particularly to health services.