How to draft an employment contract

Author: Greg Chambers, Osborne Clarke

Summary

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• When drafting an employment contract, decide what is appropriate for your organisation and the employees concerned.
• Be aware that an employment contract can be formed whether or not there is a written agreement.
• Recognise the advantage of written employment terms.
• Comply with the legal obligation to provide a written statement of employment particulars.
• Decide whether or not to merge the written statement and employment contract into one document.
• Take care when drafting variation clauses, including mobility clauses, and be aware that they may not be enforceable.
• Where a collective agreement is to be incorporated into employees' contracts, include an express clause in the contract to this effect.
• Where different employment terms apply during the probationary period, make this clear in the written contract.
• Consider the requirements of the anti-bribery and pensions auto-enrolment provisions when drafting contracts.
• Where necessary, include clauses aimed at protecting your business after employees leave.
• Be aware that clauses that undermine statutory rights will not be enforceable.
• Include an express requirement in the contract to comply with rules, policies and procedures.