Let’s chat about something that might sound a bit dull but is super important: employment contracts. Don’t worry, we’ll keep it simple and relevant to you.
So, what’s the deal with employment contracts?
Think of an employment contract as a roadmap for your relationship with your new hire. It spells out what you both expect from each other. And guess what? This “contract” starts the moment your new employee walks through the door, even if you haven’t written anything down yet!
The three employment contracts
There are three main types you need to know about:
- Permanent contracts: These are your bread and butter. They’re for regular employees who work set hours and get paid a salary or hourly rate. It’s an ongoing gig until one of you decides to call it quits.
- Fixed-term contracts: These have an expiry date. They’re great for covering maternity leave, big projects, or internships. Just remember, these folks get the same rights as your permanent staff.
- Casual contracts: Perfect when you’re not sure how many hours you can offer each week. You set a minimum, but the actual hours can go up and down. Just be careful – if a regular pattern emerges, it might turn into a permanent contract by default!
Do I really need to write this stuff down?
Short answer: Yes! Here’s why:
- It’s the law: You need to give your new hire a ‘written statement’ with the key details on or before their first day of work. But why wait? The sooner, the better! This can be done as soon as your new hire accepts their offer of employment.
- It saves headaches: Writing things down helps avoid misunderstandings. Trust us, you don’t want to be arguing about what was agreed six months down the line.
- It sets expectations: It helps your new employee understand what’s expected of them (and what they can expect from you).
What about zero-hours contracts and consultants?
Zero-hours contracts are a whole different kettle of fish. They’re for workers, not employees, and there’s no guarantee of hours. Just remember, you can’t stop them working for other people too.
For freelancers or consultants, you’ll want a ‘consultancy agreement’ instead. It’s similar, but tailored for self-employed folks.
The bottom line
Getting your contracts sorted might seem like a faff, but it’s worth it. It protects you and your new hire, and sets you both up for a great working relationship.
Remember, your contract doesn’t have to be War and Peace. Keep it clear, fair, and relevant to your business. And if you’re not sure about something, it’s always worth checking with an expert.
Need some help with contracts? We’re here to help! Let’s chat and get your contracts sorted.
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