How should the wage terms be set down in a contract of employment?
As a minimum, the rate of pay, or the method of calculation, and the intervals at which remuneration is paid must be included in the written statement of employment particulars.
The national minimum wage will automatically replace any lower wage specified in the contract.
To avoid uncertainty and disputes, the remuneration package including any overtime pay and any bonus should be set out clearly in the contract of employment. On overtime, the contract should include: whether overtime working is compulsory or voluntary, whether additional payment is to be made for any overtime worked, the rate at which any overtime will be paid and whether or not overtime can be compensated with time off in lieu.
The contract should also include a clause allowing for the deduction or repayment of sums that might fall due to the employer, for example an overpayment of wages, or training or relocation costs in the event that the employee leaves the company, if the employer wishes to be able to recover such payments.