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Chartered Accountants

Employee Contract Rules to Note in 2021

Rules around employment contracts put in place in April 2020 may leave some employers in a sticky wicket, if they don’t comply in 2021.

We wanted to ensure you are aware that employment contract changes, now means ALL workers require a ‘written statement of employment particulars’, from day one. Here we signpost you to the right template online – plus our payroll team at LHP can help with questions, or other support you might need.

What is the change in rule?

On 6 April 2020 the law changed around employment contracts, making it a legal requirement for employers to provide any person classed as employed with a written statement of employment particulars, no matter how long they are employed for.

The written statement for all workers

This must include:

  • hours and days of the week required to work, including variations
  • holiday entitlements including bank holidays
  • other benefits not covered elsewhere in the written statement
  • length of probationary period and conditions
  • any training provided by the employer
  • how long the job is likely to last

Employers must provide their employees with a ‘principle statement’ on or before their first day of employment.

National Minimum Wage must apply

Everything within it should comply with the law, such as national minimum wage (NMW). The employees’ wider written statement (or contract) must be provided within 2 months of their start date.

The right to request one in retrospect

If an employee started their job before 6 April 2020, they can request a contract, even if they have now left (within 3 months of their leaving date) and this must be provided within 1 month of the request.

Employers who don’t comply, can be faced with employee grievances, and further action can arise at employment tribunals. Employees can claim for compensation if a tribunal upholds the employee’s claim.

If you are yet to supply employees with a contract, its not too complicated, templates can be found online.

View ACAS Written Terms of Employment template (PDF)

Further information is online at ACAS and the Gov website.

Let’s Talk!

If you need help with any of this, why not get in touch. LHP is a leading cloud accountancy firm in South West Wales providing support and strategic advice for businesses so that they thrive, adapt and grow. Our HQ is Carmarthen, with offices in Haverfordwest, Tenby and Lampeter too.

If you have any concerns or questions, contact our team on 01267 237534 and on info@lhp.co.uk.

Author: Kay Augustus, LHP Payroll Manager

Tenby Office

LHP - Chartered Accountants
18 High Street
Tenby
SA70 7HD

T. 01834 844743

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