For Business

Q. Do I have to give employees a written contract of employment?

A. A contract of employment does not have to be in writing, although in the case of a verbal contract it is sometimes difficult to prove what was actually agreed.

There is however a requirement under Section 1 of the Employment Rights Act 1996 that every employer must provide each employee with a written statement setting out certain specified terms of his or her employment not later than two months after the employee starts work.

If the employer fails to provide the statement the employee may refer the matter to an industrial tribunal and the tribunal may state what the employee's terms of employment are and the employer will then be bound by those terms.

Q. Can I dismiss an employee who has not yet worked for me for one year without fear of an unfair dismissal claim being brought against me?

A. Employers must ensure that they comply with the terms of any contract of employment entered into with their employees and give them the period of notice they are entitled to. To dismiss someone in breach of contract just before they obtain one complete year's service could mean that they will be able to claim damages to include the compensation they would have obtained for unfair dismissal, had they been dismissed in accordance with their contractual terms.

Q. Can I prevent an employee from disclosing confidential information about my business when he is no longer employed by me?

A. There is an implied term in every contract of employment that an employee will not disclose any trade secrets of his employer whether during or after his or her employment. This does not however extend to confidential information and an employee may be able to make use of or pass on information such as customer lists etc. However this protection is very limited and if employers wish to protect legitimate business interests they would be advised to do so by express provision in a contract of employment.

Please note: The Freqently Asked Questions on the Finn Gledhill website provide answers which briefly summarise complex areas of the law. Our solicitors are happy to discuss any of the issues covered in further detail. Contact details: Email enquiries@finngledhill.co.uk
Tel. 01422 330 000.