Employment Contracts & Handbooks.

Changing an employee's contractual terms and conditions is possible, but it must be done carefully and lawfully, because contractual terms cannot simply be imposed unilaterally. The safest and most common route is to obtain the employee's agreement to the change — through consultation and consent, sometimes in return for something in exchange. Some contracts contain a flexibility or variation clause allowing certain changes, but these are interpreted narrowly by the courts and cannot be used to make fundamental changes. Where agreement cannot be reached and the change is essential, an employer may consider terminating the existing contract and offering re-engagement on the new terms — the dismiss-and-re-engage approach — but this carries significant legal risk, including potential unfair dismissal claims, and is now subject to a statutory Code of Practice that employers must follow. Imposing changes without agreement, or handling the process badly, can lead to claims for breach of contract, unfair dismissal, or constructive dismissal. Because changing terms is legally risky, it should be approached carefully and with advice. We guide employers through the process to achieve the change lawfully and minimise the risk of claims.

Employing staff on fixed-term, part-time, or zero-hours arrangements is permissible, but each carries specific legal requirements and protections that the employer must observe. Fixed-term employees have the right not to be treated less favourably than comparable permanent employees, and employees on successive fixed-term contracts can acquire permanent status after a continuous period (generally four years) unless the use of a fixed term is objectively justified. Part-time employees have the right not to be treated less favourably than comparable full-time employees in their terms and conditions, on a pro-rata basis. Zero-hours and casual arrangements, where the employer does not guarantee work, are lawful but carry particular considerations — including the employment status of the individuals, their accrued rights, and restrictions on exclusivity clauses. Across all these arrangements, the documentation must be drafted carefully to reflect the nature of the engagement accurately and to comply with the relevant protections. Misclassifying or mismanaging these arrangements can lead to claims and unexpected liabilities. We advise on the right arrangement for the business's needs and prepare contracts that reflect it correctly and comply with the law.

Confidentiality and intellectual property are valuable business assets, and employment contracts should deal with them expressly. On confidentiality, the contract should define what information is confidential, prohibit its use or disclosure other than for the employer's purposes, and make clear that these obligations continue after employment ends — protecting the business's trade secrets, client information, and other sensitive material. While employees owe some duties of confidentiality by law, express provisions give clarity and stronger protection. On intellectual property, the position is particularly important: although intellectual property created by an employee in the course of their employment generally belongs to the employer by default, the position is not always clear-cut — and for certain works the default may not apply. The contract should therefore set out expressly that intellectual property created by the employee in the course of their work belongs to the employer, and require the employee to assist in protecting it. This is especially important for businesses whose value lies in their intellectual property, such as technology, creative, and design businesses. Clear contractual provisions on both matters protect the business's most valuable assets, and we ensure contracts address them properly.

Restrictive covenants are clauses in an employment contract that restrict what an employee can do after their employment ends — typically to protect the business when an employee leaves. Common types include: non-compete clauses, preventing the former employee from working for a competitor for a period; non-solicitation clauses, preventing them from approaching the employer's clients or customers; non-dealing clauses, preventing them from dealing with clients even if the client approaches them; and non-poaching clauses, preventing them from recruiting the employer's staff. Restrictive covenants are enforceable only so far as they go no wider than is reasonably necessary to protect a legitimate business interest — such as client connections, confidential information, or workforce stability. A covenant that is too wide in scope, duration, or geography will be unenforceable, as the courts will not enforce a restraint that simply prevents legitimate competition. Because enforceability depends on the covenant being carefully tailored and not excessive, restrictive covenants must be drafted with care and reviewed when an employee is promoted or changes role, as a covenant that was reasonable for one role may not be for another. We draft and review covenants to maximise their enforceability.

Operating without proper employment documentation exposes a business to a range of risks. The most immediate is legal non-compliance: failing to provide a written statement of particulars is a breach of a legal requirement and can lead to a claim and compensation. Beyond that, the absence of clear documentation creates uncertainty and weakens the employer's position whenever an issue arises: without a written contract, the terms of employment may be unclear or disputed; without proper policies, the employer has no framework for handling discipline, grievances, or other matters fairly and consistently; without restrictive covenants, the business may have no protection when a key employee leaves and competes or takes clients; and without clear provisions on confidentiality and intellectual property, valuable assets may be unprotected. When a dispute or tribunal claim arises, the lack of proper documentation almost always disadvantages the employer — the absence of a clear contract, a relevant policy, or a record of the agreed terms makes the employer's position harder to defend. Proper documentation is a foundation of sound and lawful employment, and putting it in place is a modest investment that prevents significant problems. We can prepare a complete suite of documentation for your business.

Businesses use different types of employment contract and engagement to suit different working arrangements. The main types include: permanent full-time contracts, the standard ongoing employment relationship; part-time contracts, for employees working fewer than full-time hours, who are entitled not to be treated less favourably than comparable full-time employees; fixed-term contracts, for a defined period or task, where the employee is entitled not to be treated less favourably than comparable permanent employees and may gain permanent status after extended use; zero-hours and casual arrangements, where there is no guarantee of work, which carry particular legal considerations; and agency and contractor arrangements, where the individual is not a direct employee. It is also important to distinguish between employees, workers, and the genuinely self-employed, as employment status determines which rights apply — and getting status wrong can lead to claims and unexpected liabilities. The right type of contract depends on the nature of the work and the flexibility the business needs, balanced against the rights that attach to each arrangement. We advise on the appropriate type of contract and on employment status, and prepare the necessary documentation.

A written statement of employment particulars is the document setting out the key terms of employment that an employer is legally required to give. Since changes that took effect in April 2020, the right to a written statement is a day-one right: employers must provide the principal statement to employees and workers on or before the first day of employment, rather than within two months as was previously the case. The statement must contain the particulars required by the Employment Rights Act 1996 — including pay, hours, holiday, place of work, job title, notice periods, and the other matters specified by law. Some additional particulars can be provided slightly later, but the core information must be given by day one. The written statement can be, and usually is, incorporated into a full contract of employment. Failing to provide a written statement, or providing an inadequate one, can lead to a claim and an award of compensation, and reflects poorly on the employer if other matters come before a tribunal. Ensuring every employee and worker receives a proper written statement from day one is a basic compliance requirement.

A contract of employment and a staff handbook serve different but complementary purposes. The contract of employment sets out the core legally binding terms of the individual's employment — pay, hours, holiday, notice, job title, and the other key terms. It is specific to the individual and is contractually binding. A staff handbook is a broader document setting out the employer's policies, procedures, and expectations that apply across the workforce — covering matters such as disciplinary and grievance procedures, absence and sickness, equal opportunities, data protection, health and safety, and codes of conduct. A key practical distinction is that handbook policies are often intended to be non-contractual, so that the employer can update them without needing each employee's agreement to vary their contract — though whether a particular policy is contractual depends on how it is drafted and treated. Keeping the binding individual terms in the contract, and the flexible workforce-wide policies in a (generally non-contractual) handbook, gives the employer both certainty and flexibility. Drafting the two to work together correctly is important, and we can prepare both as a coherent set.

The distinction between contractual and non-contractual terms is important because it determines what the employer can change without the employee's agreement. Contractual terms are binding parts of the contract of employment — such as pay, hours, holiday, and notice — and cannot be changed unilaterally by the employer; changing them requires the employee's agreement (or a careful and lawful variation process). Non-contractual terms — often the policies and procedures in a staff handbook — are not part of the binding contract, so the employer can update them without needing each employee's agreement, provided they are genuinely non-contractual. Whether a particular provision is contractual or not depends on how it is described and treated, not just on where it appears: a policy stated to be contractual, or consistently treated as binding, may become a contractual term even if it is in the handbook. This is why careful drafting matters — employers generally want core terms to be contractual (for certainty) and policies to be non-contractual (for flexibility). Getting this distinction right in the documentation gives the employer the flexibility to update policies while keeping the key terms secure.

A written employment contract should cover the matters that the law requires to be given to employees and workers, together with the other terms governing the relationship. The legally required information — which must be provided in a written statement of particulars — includes: the names of the employer and employee; the start date and (for employees) the date continuous employment began; pay, including the amount, how it is calculated, and when it is paid; hours of work, including any variable hours arrangements; holiday entitlement; the place of work; the job title or a description of the work; the length of any fixed term; notice periods; details of any probationary period; entitlements to sick pay and other paid leave; benefits; and details of any training and of the disciplinary and grievance procedures. A well-drafted contract goes beyond the legal minimum to address matters such as confidentiality, intellectual property, restrictive covenants, and the flexibility the employer needs. Getting the contract right at the outset provides clarity and protection for both parties. We can prepare contracts tailored to your business and the different roles within it.

The policies a staff handbook should contain depend on the size and nature of the business, but a comprehensive handbook typically includes: disciplinary and grievance procedures (which the law expects employers to have and follow); an equal opportunities and anti-discrimination policy; an anti-harassment and bullying policy; absence and sickness policies, including sick pay; policies on holiday and other leave, including family-related leave; a data protection policy reflecting the employer's obligations; health and safety policies; an IT, communications, and social media policy; a code of conduct; and, increasingly, policies on matters such as flexible and hybrid working, whistleblowing, and equality and diversity. Larger or more complex businesses may need additional policies specific to their sector or circumstances. The handbook should be clear, practical, consistent with the contracts of employment, and compliant with current law. Importantly, having a policy is only half the picture — the employer must also follow it, as failing to follow its own procedures is a common cause of successful tribunal claims. We can prepare a handbook tailored to your business and keep it up to date as the law and your needs change.

Several things trigger the need to update employment documentation, and recognising them helps keep documents current. Key triggers include: changes in employment law, whether through new legislation or significant tribunal and court decisions; changes in the business, such as growth, restructuring, or new activities; changes in working practices, such as the introduction of hybrid or remote working; the promotion or change of role of key employees, which may require their restrictive covenants and terms to be revisited; and the identification of gaps or weaknesses in the existing documents. How changes are rolled out depends on whether the documents are contractual or not. Non-contractual handbook policies can generally be updated by the employer and communicated to staff, provided the handbook is genuinely non-contractual. Changes to contractual terms, by contrast, require the employee's agreement and must be handled through a proper variation process. Communicating changes clearly, explaining them, and keeping a record of their introduction is good practice. We help employers identify when updates are needed and roll them out correctly, distinguishing between changes that can be made unilaterally and those requiring agreement.