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Employment Contracts (a case study)

Employment contractsFormalising employment contracts is a key task to ensure both legal compliance and HR good practice.

The Client

A new client had been trading successfully for over five years, relying heavily on informal employment systems and the ability to take on family and friends to help run the business.

The Issue

In order for them to develop the business, they would have to look at recruiting further afield to find people with relevant skills, as well as formalise many of the word-of-mouth processes they had used in the past.

The Solution

After Kay Heald HR had spent a morning with the owner manager and met some of their staff, they were able to identify a number of key activities that needed to take priority and then a series of additional tasks that could be undertaken over a longer time frame.  One of the priority tasks was the development of written employment contracts that would formalise the existing verbal agreements.

All employees are entitled to a basic written set of terms and conditions within two months of joining an organisation.  This meant the company was not only denying staff a statutory right, but making itself vulnerable to potential breach of contract claims if staff were to dispute what had been agreed verbally.

The Outcome

By involving the staff in the development of their written employment contracts, Kay Heald HR not only helped everyone to feel part of the process, but ensured that the key terms and conditions were understood and agreed by everyone.

The client went on to successfully recruit its first non-family supervisor, who commented to the owner that it was the first time they had received a proper induction into an organisation and been given an employment contract to sign on day one!

Top Tip: We recommend that all new employers ensure their staff have written employment contracts and access to information about equal opportunities, grievance, disciplinary and health + safety procedures.

For further advice and guidance, call 01952 246612 or visit kayhealdhr.co.uk

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