Why every employee needs a contract
Blog by Charlotte Haines, Payroll Officer

In the UK, every employee is legally entitled to a written contract. If you don’t have one yet, it’s not too late—and it's essential for clarity and compliance.

For councils, a digital version of the Green Book is available for £100 (including VAT) from Employer Link, which can help guide you in creating employment contracts. Additionally, NALC and the SLCC offer approved model contracts for members. 

Why is a Contract Important?

A clear employment contract protects both the employer and the employee, ensuring both parties understand their rights and responsibilities. Here are key elements that should be in every contract:

  • Start Date

  • Working Hours

  • Salary & Benefits

  • Holiday Entitlement

  • Pension

  • Deductions & Sick Pay

These details are essential for payroll, compliance, and dispute resolution.

Risks of Not Having a Contract

Without a contract, employees are only entitled to statutory minimums, such as National Living Wage, holiday pay, and statutory sick pay. There’s no clarity around additional benefits or pay increases. For example, holiday pay or back pay will be based on statutory minimums, which may not reflect what was agreed verbally.

Accuracy in Payroll

Ensure that the payroll details (salary, hours, leave) match what’s in the contract. Any discrepancies can lead to payroll errors and legal issues.

Take Action Now

If you haven't yet provided contracts to all employees, now is the time to do so. Contracts help ensure a smooth working relationship and keep your payroll compliant.

 

 

Revisit my blog on 'Appraisals' to find out more information relating to employment matters.   

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Paying tax and national insurance to HMRC
Blog by Charlotte Haines, Payroll Officer