Did you know that the very act of hiring anyone means they have employment contracts? But it’s only a verbal one. You haven’t set out terms and conditions yet.
To do that, you’ll have to issue what’s called a ‘Section 1 statement’ of terms and conditions within two months.
It’ll cover you and cover them at the same time because if you don’t, you could be setting yourself up for problems.
You forget to issue a Section 1 statement
Just imagine the scenario. You’re a computer repair shop. You and your partners are doing really well and after six months you recruit a technician. She is 21, straight out of university. But you’re busy and don’t get round to issuing a Section 1 statement. It happens.
After two months, our young technician remembers this and complains to an employment tribunal. She could get an award of between two and four weeks’ pay – a nice little top up and you’ve lost a promising young member of staff who now works for your main competitor!
You go to the other extreme
We saw a contract for a junior print designer. It was 15 pages long with a host of restrictive covenants preventing the poor lad from moving to any other print business for five years within 50 miles! Somewhat over the top and probably unenforceable. He was hardly going to run away with industrial secrets!
You cut corners
Another possible pitfall is pulling a statement from the internet and thinking it covers everything. We see this all the time. One example was where an employer issued a basic but legally compliant Section 1 statement to a chemical engineer that failed to include confidentiality provisions or prevent the expert from poaching clients which made him a valuable asset to a competitor!
There’s a better way. Say ‘Goodbye!’ to poorly formulated or overly complicated documents that will help you employ the right people in the right conditions and keep hold of them.
To avoid these problems easily and get well drafted employment contracts, call 01904 899794 to get started.