If you’re “umming” and “ahhing” about whether you need to provide your staff with a contract, let me help you out; yes. Yes you do.
Maybe you’re taking on your first employee and it’s a friend or someone you know, so you’re not too concerned about anything going wrong. Or you’re too busy managing everything else to have the time to sort a contract. Or maybe it’s not something you want to pay out for right now.
Whatever the situation, here’s the thing. Whenever anyone is employed by your business, you absolutely need to have a contract of employment.
Are you serious?
No, really; are you serious about your company growing and developing? If you are, and you want to take on and keep the best people, you need to show you’re serious by having the correct documentation in place. Your employee may say they’re ok without it or they may not chase you up for it, but they sure won’t feel comfortable about it. They won’t feel secure which means there’s always a good chance they will move on to somewhere they think offer more security.
People fall out
Even the best of friends. In fact, when it comes to business, friends and family can fall out – and do – A LOT. If things fall apart and you don’t have a standard agreement set out in black and white it can all become very heated and emotional, drawn-out and costly. Which brings us on to….
The real cost of not having an employment contract
Yes, it costs you to have a contract drawn up for your business, but it costs you more not to. What if you agree to pay for some training on the basis that your company will benefit from having someone trained up? Then they leave and another company benefits from their newly acquired skills instead. No written agreement? Nothing you can do about it. Do you have a customer database you’ve built up over the years? How would you feel if someone walked out one day and suddenly all your clients started moving to ‘They’re Mine Now Ltd’? Really not great. An employment contract can set out expected conduct while your member of staff works for you, and what happens when they leave.
You’ve got one whether you want it or not!
Even if you don’t have a written contract, a verbal contract exists as soon as a job is accepted. You have an implied contract, so you’re bound by statutory rules. Do you want to be bound by rules you haven’t set yourself? And do you even know what these rules are? If you haven’t set them because you haven’t looked into it there’s a chance you’ll fall foul of the statutory minimums, which means there’s another opportunity for grievances, tribunals and costs.
When it comes to employment contracts, it’s just not worth the risk of not having the right written contract in place. To find out more about how I can help you with your staff contracts, you can contact me here – and throughout August 2019, you can quote CONTRACT0819 to get a tailor-made template contract at the reduced price of £199. What’s left to “umm” and “aaah” about?