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Why do you need to draft written contracts of employment?

When a business does not provide a written contract of employment, resolving disputes between the employer and employees can become more challenging. Without a clear agreement on the terms of employment, it may be difficult to establish what is expected of each party and how to resolve disagreements.

Here are some examples of how difficulties in resolving disputes can arise:

  1. Disagreements over working hours: If there is no written contract outlining the expected working hours, employees may have different expectations regarding their hours of work. This could lead to disputes over issues such as overtime pay or the amount of time off that employees are entitled to.

  2. Disputes over pay: Without a written contract, it may be difficult to determine how much an employee should be paid and what deductions are permissible. This could lead to disputes over issues such as unpaid wages, holiday pay, or sick pay.

  3. Disputes over job responsibilities: In the absence of a written contract, it may be unclear what an employee's job responsibilities are. This could lead to disputes over issues such as workload, job duties, or job title.

  4. Disputes over termination: Without a written contract, it may be difficult to determine how much notice is required when terminating an employee's contract. This could lead to disputes over issues such as wrongful termination, unfair dismissal, or severance pay.

The costs of resolving disputes can be significant. For example, if an employee takes legal action against a business for failing to provide a contract of employment, the business may face legal fees and compensation costs. Additionally, if a dispute leads to a breakdown in the employment relationship, the business may need to spend time and resources recruiting and training new staff.

To avoid these costs, it is essential for UK businesses to provide their staff with a written contract of employment that clearly outlines the terms of their employment. This will help to prevent disputes from arising and make it easier to resolve any disagreements that do occur.

S Holborn -Humans Ltd simon@humanshr.co.uk


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