Staff contracts

[simon]

Hi

1. Can I write the contract myself ?

2. Do I need to do anything with the contract to make it legal ?

3. The contract is important, if it is broken it will result in staff disaplinery or the sack, it will also need to be referred to if the other party does not pay any outstanding debts to my company, the other party may wish to refer to the contract if they feel I have broken the contract. So as i said it is important.

4. On agreeing to the contract the staff member is agreeing with my company policy and what is expected of them in their job role as well as what actions the business will take in certain situations

Thank you.

CKhalvashi

[simon] wrote: »

Hi

1. Can I write the contract myself ?

2. Do I need to do anything with the contract to make it legal?

We had a solicitor write our original contracts to make sure they were compliant, but in essense, as long as it complies with the relevant legislation, yes to 1, and no to 2.

3. The contract is important, if it is broken it will result in staff disaplinery or the sack, it will also need to be referred to if the other party does not pay any outstanding debts to my company, the other party may wish to refer to the contract if they feel I have broken the contract. So as i said it is important.

I assume we're talking employment contracts here, which will mean that wages are due whether the company has been paid or not. We have around £7m owed to us at the moment, and wages have to be paid whether we're paid this or not.

In a standard employer-employee relationship, there should be no need for an employee to owe you money. The only main exception is with company cars, of if you smash it up, you pay the excess (capped at £1000).

You also need to be careful with your disciplinary procedures, as after two years, employees have protected employment rights, meaning that should they drag you into tribunal, the contract can (and probably will) be examined.

4. On agreeing to the contract the staff member is agreeing with my company policy and what is expected of them in their job role as well as what actions the business will take in certain situations

Again, you'll need to be careful here.

Many staff will have a general role description in the contract, however at the same time, however I have been known to ask 'can you just..........', and there is a general expectation within the office that if I ask that, it will be done.

I own/run the company, however I have been known to muck in with the staff, and as I've said before, as long as it's not unreasonable, a job description can vary right down to being what you're doing at any one given time.

CK

paddyrg

These contracts sound important to your business and sound like you're looking to protecting an unusual situation - as such by all means write your own contracts BUT get an employment lawyer to check them, or you could be opening an even bigger can of worms.

The employee debt thing is worrying, sounds like indentured labour you're describing. That's what replaced slavery in the US Southern states! Naturally, the law is sensitive in this area which is why you need legal advice. I'm sure you're not people smuggling or anything sinister, but be aware what it could resemble!

I'd look at keeping the debt (if there is one?) and the job entirely separate and entirely separate relationships.

Wywth

[simon] wrote: »

Hi

1. Can I write the contract myself ?

Yes, but seeking the advice, even services, of an independent legal adviser is strongly recommended. You may need to rely on the terms of the contract later, so it's important to get it right legally.

[simon] wrote: »

2. Do I need to do anything with the contract to make it legal ?

Ideally it needs to be signed by the employee, and then provide the employee with their copy.

[simon] wrote: »

3. The contract is important, if it is broken it will result in staff disaplinery or the sack, it will also need to be referred to if the other party does not pay any outstanding debts to my company, the other party may wish to refer to the contract if they feel I have broken the contract. So as i said it is important.

Agreed, it's always best to get terms agreed in writing in all forms of business.

[simon] wrote: »

4. On agreeing to the contract the staff member is agreeing with my company policy and what is expected of them in their job role as well as what actions the business will take in certain situations

Thank you.

In that case, I suggest you get the policy at least reviewed, if not written, by an independent legal adviser too.:)
Oh and make sure the employee is given a copy of that too.

Mistral001

I agree with those who have queried point No. 3.

Why would your employees run up debts with you?

Wywth

Mistral001 wrote: »

I agree with those who have queried point No. 3.

Why would your employees run up debts with you?

Employees can sometime accrue debts with their employer for various reasons.

e.g. where an advance of salary is requested and granted or where an employee, required to travel as part of their employment, is granted an advance to cover the costs (such costs later need to be itemised and approved and a resulting balancing payment made as appropriate), etc

Mistral001

Wywth wrote: »

Employees can sometime accrue debts with their employer for various reasons.

e.g. where an advance of salary is requested and granted or where an employee, required to travel as part of their employment, is granted an advance to cover the costs (such costs later need to be itemised and approved and a resulting balancing payment made as appropriate), etc

Does that sort of thing need to be put in a contract? If someone did run off without paying back the employer it would be simple case of debt collection or even a police matter in the case of running off with a wad of advance expenses money.

Wywth

Mistral001 wrote: »

Does that sort of thing need to be put in a contract? If someone did run off without paying back the employer it would be simple case of debt collection or even a police matter in the case of running off with a wad of advance expenses money.

Not necessarily in an employment contract. Terms of such advances/loans can be specified in a separate agreement entered into prior to lending the money, including an agreement to recover that as a deduction from wages if necessary. Makes sense really, why bog down an employment contract with terms of loans that may not ever apply.

Hence my suggestion to the OP to seek the advice of a independent legal adviser ... which I am not.

Savvy_Sue

Coming slightly late to the party, but agree that getting a proper contract checked out by an employment solicitor could save a lot of time, money and grief. However the ACAS website will give access to 'model' terms and conditions, and to examples of a good grievance and disciplinary policy.

Another time when an employee can owe the employer money is if they leave at short notice after taking more leave than they are entitled to. AIUI, this cannot legally be deducted from the final salary unless it's in their contract. At least, when I've told our payroll provider to deduct x days from someone's final salary in such circumstances, they've always checked we have that clause!

charging employees for damage to cars, phones and other equipment is more problematic: that's what the employer should have insurance for. Deliberate damage would be gross misconduct, but an accident? Doesn't lead to good employee relations. Charging for shortfalls in the till is another problem area - evidence is crucial.

paulwf

Generally it is now common for there to be a contract and a separate staff handbook that goes into more details about each element. There are employment service providers that can provide you with contracts and handbooks, you can then modify them to suit and get them checked by a solicitor. Just be aware that if you ask a solicitor to create one entirely from scratch that will be many hours work, much better to modify a standard template unless you are a large business or have very specific requirements.

LittleVoice

Sorry - haven't had time to read the whole thread, but

Training costs are one area where many employers want to be able to reclaim as a debt from an employee who wants to leave within a short time. This is where written terms have to be signed by the employee in order to recoup such money.

For the staff handbook to be contractual, it needs to be referred to as such. For the avoidance of doubt, any parts of the staff handbook which are not to be considered contractual should be marked as non-contractual.