However, many employers elect to provide full written terms (contract of employment) at the same time as the offer of employment is made. This helps to reduce the likelihood of misunderstandings arising over what has in fact been offered.

The distinction between a contract of employment and a written statement is as follows:

Information that must be included within the written statement is as follows:

It is impossible to include clauses that cover every eventuality however the written statement need not restrict the employer in any way. In fact, it is possible for flexibility to be included within many of the key terms and it is therefore advisable for the employer to include some flexibility.

Some key points to note in relation to specific clauses:

Benefits

Should specify the contractual benefits to which the employee is entitled. However, because the full details of the policy on a particular benefit may be too lengthy to set out in the contract of employment, or the policy may be subject to regular change, the contract may refer to a separate detailed document setting out the full policy and terms. This should always be available on request, and employees should be consulted, or at the very least notified, in advance of any changes.

Hours of work

The normal hours of work must be included in the written particulars. If the employee is to be required to work overtime, this too should be stipulated in the written particulars. Annualised hours, casual hours and zero hours contracts require particular care in drafting. It may be a good idea for the employer to include a flexibility clause authorising the company to change the employee’s hours to meet future business needs, and in this case it is clearly sensible for it to include authority to change the employee’s rate of pay in the event that hours are altered.

Holidays

Any entitlement to holiday, including public holidays, and holiday pay has to be included in the written particulars. Under the Working Time Regulations 1998, and Working Time (Amendment) Regulations 2007 workers are now entitled to 5.6 weeks’ annual leave, which may include bank and public holidays. The entitlement to the four weeks’ basic leave cannot be carried over to the next holiday year nor can there be a cash substitute for annual leave except on termination of employment. Employers can fix their own conditions for any additional contractual leave that they offer over and above the 5.6 weeks’ statutory minimum. There is no entitlement to leave or paid leave on bank holidays unless there is an express or implied term to that effect in the employee’s contract.

Mobility

The place of work has to be notified in the written particulars but it is possible also to include a mobility clause entitling the employer to move the employee to a different workplace. Whenever the employer exercises the power to relocate an employee, it must act reasonably in the manner in which it seeks to exercise the mobility clause, or it will be in breach of the implied duty of mutual trust and confidence. Employees whose contract stipulates that they may be required to work abroad can later refuse to go if they find they have to travel to an area where their life would be at risk. Employees sent to work abroad for more than one month must be provided with additional information in their written particulars before they leave.

Notice period

Notice clauses should provide for a minimum period of notice at least equivalent to the statutory minimum period of notice. If there is no express clause in the contract, the employee is entitled to a reasonable period of notice at common law. If an employee’s contract is terminated after one month but before two years’ service has been completed, statutory notice is one week. After two years and up to 12 years’ service, the statutory notice period is one week for each completed year of continuous service. For employees with more than 12 years’ service, the minimum notice period is 12 weeks.

Pay

The written particulars should set out the scale or rate of pay, the intervals at which an employee should be paid and, if applicable, details of overtime payments. On overtime the contract should include:

Restrictive covenants

A restrictive covenant is an agreement (usually a clause within a contract) between an employer and an employee that restrains the employee from carrying out certain actions both during employment and in the event that the employment ceases. Restrictive covenants are primarily concerned with protecting the employer’s interests when the employment has ceased, as employees are under a duty of fidelity and cooperation, which protects employers during employment. The actions that covenants commonly seek to prevent a former employee from carrying out include:

For further advice call P3 People Management on 0161 493 1963.

New award limits come into force – 1 February 2012

Forthcoming changes include increases to the limits on certain employment tribunal awards and other amounts payable under employment legislation: the maximum unfair dismissal compensatory award rises from £68,400 to £72,300 and the maximum amount of a week’s pay for the purpose of calculating a statutory redundancy payment, and the basic and additional awards for unfair dismissal, increases from £400 to £430.

Qualifying period for unfair dismissal to be increased – 6 April 2012

The qualifying period for an employee to bring an unfair dismissal claim will increase from one year to two years’ continuous employment. The increase will apply only to employees who start a new job on or after 6 April 2012.

Statutory maternity, paternity and adoption pay increases – 1 April 2012

The standard rate of pay for the above increases to £135.45 per week.

Statutory sick pay increases – 6 April 2012

The standard rate of statutory sick pay increases from £81.60 to £85.85 per week.

Changes to tribunal  procedure –  6 April 2012

The maximum amount of a deposit order, which a tribunal can order a party to pay as a condition to continuing with tribunal proceedings, increases from £500 to £1,000. The maximum amount of a costs order, which a tribunal may award in favour of a legally-represented party, increases from £10,000 to £20,000. Other changes will also come into effect regarding employment tribunal procedure, including changes to witness statements, which are no longer read aloud, and are instead taken “as read”, unless the tribunal directs otherwise. Tribunals have the power to direct that the parties to a dispute are responsible for paying witnesses’ expenses and that the party who loses the case should reimburse the successful party for any such costs already paid out. Employment judges will hear unfair dismissal cases alone in the employment tribunal, unless they direct otherwise, and judges will hear all cases alone in the Employment Appeal Tribunal, unless they direct otherwise.

 ‘Stats Corner’

*The rise in the limits applies where the event that gives rise to the award or payment occurs on or after 1 February 2012.

“This is a question which we are being asked more and more by clients. Some of them are preparing for sale, or applying for new funding, whilst others are simply looking to ensure they have the best management team in place in these tough economic times; with a view to grooming future leaders and managing others upwards or outwards.

“Essentially, the answer to this question is to put your business through ‘due diligence’ that will allow you to objectively assess your management team and your business’ strengths and weaknesses. The aims of this practice should be as follows:

• To focus on the future not the past and assess how your existing management team can enable you to move forwards and grow

• To devise objective criteria to interview new managers and directors against

• To manage your senior team upwards or outwards

• To assess gaps in strategy, process, infrastructure and environment

• To provide objective and measurable evidence to financial institutions should you require funding or investment.

“In response to the growing demand from businesses, particularly SMEs, for a framework to utilise in order to achieve these goals, P3 People Management has developed a new Best Practice Management Due Diligence to shape and groom leadership capability and management structure.

“The term, ‘Due Diligence’ is used for a number of concepts involving either an investigation of a business or person prior to signing a contract, or an act with a certain standard of care. It can be a legal obligation, but will more commonly apply to voluntary investigations and is commonplace when a potential acquirer evaluates a target company for its assets or acquisition. Our new Management Due Diligence is different, however, in that; whilst it can certainly be used for the preparation of a sale or acquisition, it can also be tailored very specifically to suit the company’s needs, whether that be simply improving business structure, preparing for flotation or considering management buyout; via a selection of optional frameworks.

“The participating business will be benchmarked against any number of the Best Practice Frameworks as part of a diagnostic assessment; with the two mandatory frameworks being Finance & Accounting and The Human Audit. The business can then choose as appropriate from the other Best Practice Frameworks; all of which are recognised by both the public and private sector and have been independently audited by Deloitte and approved by Government Office.

“The results will then provide a clear route map of improvements required for the business to achieve best practice; with solutions, timescales and costs prioritised within a project plan. The project plan can also be used as the basis of a transparent, proactive and open discussion between the bank and client if funding is required and allows the bank to ensure client projects can be tied into released tranches of funding.”

To find out more or receive a quote for a Best Practice Management Due Diligence to suit your business’ needs, contact P3 People Management on 0161 493 1963.

The human resources consultancy, which specialises in offering outsourced support to a range of businesses across the UK, has seen an increase in demand for their career guidance services throughout 2009, due to issues such as redundancy, pay cuts and low morale within organisations suffering from the downturn and, in response, P3 People Management has developed a comprehensive career management package.

Led by P3 People Management director Charlotte Gallagher with the assistance of Nigel Harrop and Ian Theobold, both founding members of PortfolioExec *, the programme

is aimed at senior management and individuals seeking to change career or diversify utilising their existing skills. The ‘Professional approach to career management’ programme offers personalised advice on how to get an individual’s career on track through a series of workshops covering CV preparation, time management, applying for and researching new job opportunities, career planning, preparing for interviews, job offer negotiation, portfolio career advice and networking opportunities.

According to Charlotte, the economic downturn has changed outlooks and attitudes towards employment prospects, resulting in workers seeking a more personalised careers advice service. She comments: “The slowdown is impacting on employees across the board; those nearing retirement age may be encouraged to step down early or to consider a less senior role following budget cuts, some are seeking a new career due to a downturn in their markets and others are seeking advice on how to develop their skills and further their career in a tough financial climate.

“With this in mind, P3 People Management has developed a personal approach to career advice, which takes an individual’s personality, strengths and interests into account, ensuring that we steer them towards a successful and rewarding career in their chosen profession.”

Nigel Harrop of PortfolioExec added, “We’re really pleased to be working with P3 People Management on this exciting new programme which addresses topical issues and offers practical constructive advice to support senior employees in need of career guidance. P3 People Management’s modular career development programme shows individuals how to address the advertised and unadvertised jobs’ market proactively and productively. We can also offer opportunities for executives with advice on alternative careers and peer-group support at the right level, through our affiliate PortfolioExec.”

To learn more about the career development programme call P3 People Management on 0161 904 5476 or visit www.p3pm.co.uk