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[Employee Name] Contract of Employment THIS AGREEMENT IS MADE ON [DATE] 2020 [XXXXXXXX LIMITED] and [EMPLOYEE NAME] CONTRACT OF EMPLOYMENT Disclaimer: We recommend that you take legal advice before using this document or taking any course of action (or omitting to take any action) that has or may have legal implications. If you use this template document without obtaining legal advice you do so at your own risk. CONTRACT OF EMPLOYMENT This agreement is made between the following parties: The Employer: [XXXXXXXX LIMITED] (the “Employer”), whose address is [address]; and The Employee: [NAME] (“you” or the “Employee”) of [address]. 1 Introduction 1.1 This document sets out the terms of your employment with the Employer. 1.2 The full particulars which must be given to you in compliance with the Employment Rights Act 1996 are included in this document. 2 Commencement of Employment 2.1 Your employment with the Employer began on [date]. 2.2 Your period of continuous employment began on [date] and no employment with a previous employer counts as part of your period of continuous employment. 3 Probationary Period 3.1 [The first [six] months of your employment will be probationary. During your Guidance: Probationary periods (as provided for in clause 3) are very useful for employers, particularly when the contract provides probationary period your performance and suitability will be monitored. The Employer for more than the statutory notice period of one week per year of reserves the right to extend your probationary period for another [three] months service (as in this contract). Probationary periods enable the Employer to dismiss the employee on short notice (in this case one should it choose to do so. During your probationary period either party may terminate week) when their performance has been unsatisfactory. This clause gives you the option to extend the probationary period by up to your employment by giving the other one week’s notice in writing, which the Employer another 3 months to give more time in situations where it is not may pay in lieu.] OR [You are not subject to a probationary period]. clear whether the employee will be able to improve or sustain the improvement to the required standard. 3.2 [Your employment is conditional upon the Employer receiving [two] references [(one Guidance: We would recommend that you make the employment conditional upon satisfactory references in the majority of cases. of which must be from your last employer)] about you which it considers satisfactory. This clause makes the employment conditional on you receiving 2 If a reference is found to be unsatisfactory your employment may be terminated with satisfactory references (i.e. satisfactory to you) and gives you the option to terminate with immediate effect and without payment of immediate effect and without notice or payment in lieu of notice.] OR [Your notice if one or more of the references are unsatisfactory. employment is not subject to references]. 3.3 Your employment is conditional upon you passing the Employer’s recruitment and vetting procedures as may apply from time to time and passing all procedures and authorisations applied to you by the Financial Conduct Authority from time to time. 4 Appointment Disclaimer: We recommend that take legal advice before using this document or taking any course of action (or omitting to take any action) that has or may have legal implications. If you use this template document without obtaining legal advice you do so at your own risk. 4.1 The title of the job which you are employed to do is [position] but you are also Guidance: It is advisable to draft the employee's duties and the job title as widely as possible to give you maximum flexibility in required to undertake such other roles and duties as the Employer considers what you can ask the employee to do on a day to day basis (subject appropriate having regard to your skills and experience. to your duty to act reasonably). 4.2 You warrant that you are legally entitled to work in the United Kingdom without any additional approvals and you will notify the Employer immediately if you cease to be Guidance: This clause contains a warranty that the employee is entitled to work in the UK. It is advisable to have such a warranty in so entitled. view of the fact that an employer you will be liable to a civil penalty if you negligently employ someone who is not entitled to work in the UK and will commit a criminal offence if you knowingly employ 4.3 You agree that you will not engage in any activity or undertaking (whether directly or such a person. You will have a defence to the criminal prosecution indirectly) that is competitive with the business of the Employer or otherwise conflicts if you check certain documents proving their identity and right to work in the UK (such as passport etc) before employing the with the interests of the Employer and you agree and accept that if you do so engage individual and (in some cases) at least every 12 months during employment. Inclusion of the warranty at least puts some of the in such conduct during your employment then the Employer will be entitled to dismiss burden on to the employee (as the employee will be in breach of you summarily without notice or payment in lieu of notice. contract if they are not entitled to work in the UK). 5 Place of Work 5.1 You will be based at [location] but you agree to work at such locations as the Guidance: Clauses 5.1 and 5.2 give you the flexibility to move the employee anywhere within a reasonable area. Courts and tribunals Employer may specify from time to time. expect employers to exercise mobility clauses reasonably, or it could be a breach of the implied term of mutual trust and confidence which is in every employment contract. 5.2 The Employer reserves the right to change your place of work to any other place as the Employer reasonably requires from time to time whether on a permanent or temporary basis. 6 Pay [& Bonus] Guidance: Clause 6 currently does not provide for a bonus for junior employees employed on the terms of this agreement. If you intend to give the employees access to a bonus scheme – you should 6.1 Your salary (before deductions) at the date of this document is £[XX,000] per annum, set out the details in this clause (for example whether it is an entirely discretionary scheme or if there are KPIs which must be achieved payable in monthly instalments. This is your basic salary. for the bonus to be paid and what bonus the employee will be paid for achieving those KPI’s etc. 6.2 You will usually be paid on or around the [last day] of each month. The Employer will make a deduction from your salary for any day, or part of a day, not worked during the period to which the payment relates, unless payment is due under any sick pay or holiday provision of this contract or as otherwise required under statute. 6.3 Your salary will, entirely at the discretion of the Employer, be reviewed annually. A review does not mean that a pay increase will be made. Likewise, an increase in one year does not mean you will receive an increase in following years. 7 Normal Working Hours 7.1 Your normal working hours are from [9am to 5pm] inclusive, with an unpaid lunch break of [XX minutes] but you agree that you will work such hours [and on such days] as are necessary to properly discharge your duties. 7.2 You will work [Monday to Friday] each week, unless otherwise agreed. The Employer reserves the right to vary your hours of work upon reasonable notice as the needs of the business require. Disclaimer: We recommend that take legal advice before using this document or taking any course of action (or omitting to take any action) that has or may have legal implications. If you use this template document without obtaining legal advice you do so at your own risk. 7.3 [You may be required to work on Saturdays, Sundays and on public and bank holidays. If this occurs you will be paid for the time worked at your normal rate of pay.] Guidance: You should consider whether it is appropriate to include this clause as it conflicts with clause 7.1 which is an unpaid overtime clause. If it is intended to pay employees for working 8 Termination of Employment overtime at weekends and on bank holidays – we suggest that the words in brackets in clause 7.1 are deleted. 8.1 [If the Employer confirms that your probationary period has been completed successfully, then following such confirmation] the period of notice to be given in Guidance: Only include if the probationary clause at 3.1 is included. writing by the Employer or by you to terminate your employment is as follows: 8.1.1 in the first five years of continuous employment: one month’s notice; and 8.1.2 on completion of five complete years of service: one week for each complete year of continuous service up to a maximum of 12 weeks' notice. 8.2 Nothing in these terms of employment will prevent the Employer from terminating your employment without notice in appropriate circumstances. 8.3 There is no normal retirement age applicable to your employment. 8.4 If you leave your employment without giving full notice or you leave during your notice period you agree that the Employer may deduct a day’s pay for each day that you Guidance: There is a benefit in including this clause to act as a deterrent but you should proceed with caution in actually deducting should have been working during your notice period.
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