Legal Article - Employment Law

Statement of Terms and Conditions of Employment

Although the entire Contract of Employment need not be written, certain information must be provided in writing. It is also good practice to clearly define the Employment relationship, as this can minimise later disagreements as outline within the Employment Relationship Act 2000.

Under the Employment Rights Act 1996, all new employees whose employment continues for a month or more, are entitled to receive a written statement of particulars of employment specifying important information.

The employer must provide a statement no later than two months after the employee starts work. An employer is only required to provide a new written statement to existing employees if they request one. This request can be made up to three months after the employee’s employment ends.

The following details must be given together, in a single document, and is known as the “Principal Statement of Employment”. These details are:

a) the names of the employer and employee
b) the date when employment began
c) the date on which the employee’s period of continuous employment began, taking into account any employment with any previous employer, which counts
d) the scale or rate of pay, or the way pay is worked out
e) the pay intervals (hourly, weekly, monthly etc)
f) any terms and conditions relating to hours of work (including normal working hours)
g) any terms and conditions relating to holiday entitlement including public holidays and holiday pay (including rules on entitlement to accrued holiday pay on termination of employment).

These rules must be sufficiently specific to allow the entitlement to be precisely calculated.

h) job title or a brief job description
i) place of work, or, if the employee is required or permitted to work at various places, an indication of that fact and the employer’s address.

The employer must also provide the following details, either with the Principal Statement of Employment or separately (but within two months)
• Any sickness/injury scheme

• Rules on pension and pension schemes (e.g. whether it is contacted out or not)

• Length of notice to be given by both employer and employee

• If it is a temporary contract of employment

• If it is a fixed term contract of employment

• Particulars of any collective agreements which directly affect the terms and conditions of the employment including, where the employer is not a party, the person by whom they were made

• The name or description of the person with whom the employee can raise a grievance and the manner in which such applications should be made (see “implied terms” above)

• Any disciplinary rules and procedures applicable and the name or description of the person to whom an employee can apply if dissatisfied with a disciplinary decision and the manner in which such applications can be made (companies employing fewer than 20 employees do not have to provide these details on discipline)
• where the employee is required to work outside the U.K. for a period of more than one month, details of the length of posting, the currency in which payment will be made, details of any additional benefits arising from the posting and any terms and conditions relating to the employee’s return to the U.K.

The matters contained in the Principal Statement of Employment must be given in detail to the employee in one document.

For the other matters the written statement can refer employees to another document for details providing the employee has a reasonable opportunity to read the reference document in the course of their employment or where the document is made reasonably accessible in some other way (e.g. a Staff Handbook).

Any changes to the details described above must be given to each employee in writing at the earliest opportunity and in any event no later than a month after the change is made.

If the change is to one of the matters specified in the Principal Statement of Employment the change must be given in full; otherwise the written notification may refer the employee to another document provided it is reasonably accessible.

Published: 24 Mar 2011


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