Why Updating Your Employee Contracts is a Smart Move for Your Business
Photo by Gabrielle Henderson on Unsplash
Have you taken a moment recently to review your employee contracts? In the ever-evolving landscape of employment law we recently shared, maintaining current and comprehensive contracts is not just wise – it is essential. At Castle HR & Training Solutions, we have gathered insights and advice to navigate the complexities of employee contracts effectively.
Frequency of Review: It’s prudent to conduct an annual examination of your employee contracts. This ensures they remain in lockstep with both legal developments and your organisational dynamics. While there’s no hard rule on issuing new contracts with each change, clearly communicating updates to your team is crucial.
A suggestion of some of the trigger points for updates: Several scenarios necessitate a fresh look at your contracts: (this list is not exhaustive, merely a couple of examples)
· Role changes or promotions
· Adjustments following dispute resolutions
· Shifts due to mergers, re-organisation, or operational changes
Pro Tip: Any alteration to contract terms, especially those improving conditions (e.g., increased holiday allowance), should be transparently shared with employees, fostering a culture of openness.
The Importance of Professional Oversight: While D.I.Y might seem tempting, drafting and updating contracts is a job for the experts. HR and legal professionals are best equipped to ensure your contracts meet all necessary standards and protect both the company and its employees.
Common Oversights: It’s easy to overlook essential elements like overtime policies, post-termination restrictions, and intellectual property rights. Professional drafting helps avoid these pitfalls.
Verbal Agreements: Remember, verbally agreed terms are as binding as their written counterparts. It’s always best practice to document any agreed changes formally.
Customisation is Key: While starting with a template is practical, personalising contracts to reflect specific role requirements and company policies is essential. This includes work hours, pay, job title and any bespoke clauses.
Risks of Stagnation: Failure to update contracts can lead to legal non-compliance, disputes and jeopardise business stability. Employment law’s dynamic nature means staying ahead is crucial for protection and compliance.
Essential Contract Elements: A comprehensive contract covers everything from basic personal and job details to specific work conditions, benefits and legal obligations. Ensuring all these bases are covered is paramount for a sound legal foundation.
Employee contracts are foundational to fostering positive and productive work environments. Through diligent review, customisation, and adherence to legal standards, you’ll support both your businesses’ and your employees best interests.
Have questions or need assistance with your contracts? Reach out to Castle HR & Training Solutions for a complimentary audit. Let’s ensure your contracts are as robust and effective as your team!
