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#9717 - Contracts Of Employment Consolidation - Employment Law

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Explain the following clauses and whether they are valid
PRELIMINARY

THIS AGREEMENT is made the.. day of .. BETWEEN (1) (employer) [of (address) or whose registered office is at (address)] (‘the Employer’) and (2) (employee) of (address) (‘the Employee’).

IT IS AGREED as follows:

Interpretation

  1. Words importing one gender include all other genders and words importing the singular include the plural and vice versa;

  2. Any reference to a statutory provision shall be deemed to include a reference to any statutory modification or re-enactment of it;

  3. The clause headings do not form part of this agreement and shall not be taken into account in its construction or interpretation;

  4. References in this agreement to any clause sub-clause schedule or paragraph without further designation shall be construed as references to the clause sub-clause schedule or paragraph of this agreement so numbered.

JOB TITLE

Job title

The Employer shall employ the Employee in the capacity of (job title). [In addition to the duties which this job normally entails, the Employee may from time to time be required to undertake additional or other duties as necessary to meet the needs of the Employer's business.] The Employee's employment will commence on (specify) [no employment with a previous employer counts as part of a period of continuous employment or forms part of a continuous period of employment which began on (date) with (name of previous employer)].

PLACE OF WORK

Place of work

The Employee's usual place of work will be (specify) (but the Employee may be required to work at (specify other locations, etc) and/or (the Employee) [will also] be required to work in (specify country/location) outside the United Kingdom] for (specify period).

EXPENSES
  • Sensible to include provisions dealing with expenses, especially if the employee has to work in a different office. These may include:

    • The employee must get permission from the employer in order to incur an expense of over 50

    • The employee must provide all receipts of any expenses incurred

RENUMERATION/ MINIMUM WAGE
  • The protection of wages legislation set out in Pt II of the ERA 1996 protects an employee if an employer fails to pay the proper wages due under the contract, and prevents an employer from making deductions from an employee’s wages unless they are authorised.

  • Example: Employer X wants to pay his office juniors, who range in age from their teens to their fifties, a wage of 13,500 a year. They work 9 hours a day.

  • The equation:

    • The relevant minimum wage rate (as per the table above) * hours per day (including break) * days a week (usually 5) * weeks in a year (52)

      • So for someone above 21: 6.31 * 9 * 5 * 52 = 14,765.40

      • This means the minimum wage is more than the firm was proposing to pay… so for this age range it would be fine

      • Repeat as appropriate for each age range

Remuneration

The Employer shall pay the Employee by [specify method of payment] at the rate of [ (................................ pounds) per week or (................................ pounds) per year payable by equal monthly instalments in arrear on the (day) of each calendar month]. [If the Employee is required to work outside the United Kingdom for longer than one month, specify currency in which salary/wages is to be paid, any additional remuneration and benefits applicable during the period and any terms and conditions relating to the employee's return to the United Kingdom.]

HOURS OF EMPLOYMENT/ WORKING TIME REGULATIONS
  • Weekly working time – In a 17-week period (which may be extended), no worker is permitted to work more than an average of 48 hours (including overtime) a week

    • The reference period of 17 weeks means that, so long as the employee has not worked more than the average in the 17 weeks preceding and including today, then the rules are not breached. In view of this, employers are well advised to put in place early warning systems to check whether an employee is nearing the limit on each rolling period

    • The worker can opt out of this (see pages 50-52)

  • Adult workers are also entitled to:

    • Eleven consecutive hours’ rest in every 24-hour period

    • An uninterrupted rest period of not less than 24 hours in each seven-day period (in addition to the daily rest period)

    • Twenty minutes’ rest break, provided that the working day is longer than six hours

    • An entitlement to 5.6 weeks’ (i.e. 28 days for a 5-day per week employee) paid annual leave

Hours of employment

  1. The Employee's normal hours of employment shall be from (time) to (time) on (specify days) [during which one hour may be taken for lunch at (time) or between (time) and (time).]

  2. The Employee may be required to work such hours outside normal hours of employment as the Employer considers necessary to meet the needs of the business and the Employee shall [not] be paid for such further hours [at the rate of (................................ pounds) per hour].]

or

[There are no normal working hours for this employment and the Employee is required to work at such times and for such periods as are necessary for the efficient discharge of his duties.]

HOLIDAYS/ ANNUAL LEAVE
  • The Working Time (Amendment) Regulations 2007 (SI 2007/2079) came into force on 1 October 2007. The 2007 Regulations increased holiday entitlement to 5.6 weeks (28 days for a 5-day per week employee) on 1 April 2009.

  • Page 54

Holidays

  1. The Employee is entitled [in addition to the normal public holidays] to take (specify number) working days as holidays in each holiday year which runs from (date) to (date) [and the Employee will be paid his normal basic remuneration during such holidays].

  2. If the Employee's employment commences or terminates part way through the holiday year his entitlement to holidays during that year will be assessed on a pro rata basis and deductions from final salary due to the Employee on termination of employment will be made in respect of holidays taken in excess of entitlement.

  3. Holidays must be taken at times convenient to the Employer and sufficient notice of intention to take holiday must be given to the Employee's [supervisor or manager]. [No more than (specify number) days' holiday may be taken at any one time unless permission is given by the Employee's [supervisor or manager].]

  4. Holiday entitlement unused at the end of the holiday year cannot be carried over into the next holiday year.]

  5. Subject to the Employee's statutory rights, the Employee will not be entitled to be paid in respect of holidays accrued due but untaken as at the date of termination of employment. For these purposes any paid leave the employee has taken (including any paid leave on public holidays) will be deemed first to be statutory paid leave and then only when it is exhausted to be extra contractual paid leave or The Employee will be entitled to payment in lieu of holidays accrued due but untaken as at the date of termination of employment.]

  6. A day's holiday pay for the purpose of this clause is (state amount).

SICKNESS/ STATUTORY SICK PAY
  • With effect from 6 April 2013, the rate of statutory sick pay is 86.70, which is payable for a maximum period of 28 weeks in any three years

Sickness

  1. In the event of absence on account of sickness or injury the Employee (or someone on his behalf) must inform the Employer of the reason for the Employee's absence as soon as possible and must do so no later than [the end of the working day] on which absence first occurs.

  2. In respect of absence lasting [7 or fewer] calendar days the Employee is not required to produce a medical certificate unless specifically so requested by the Employer but must complete the Employer's self-certification form on return to work from such absence.

  3. In respect of absence lasting more than [7] calendar days the Employee must on the [eighth] calendar day of absence provide the Employer with a medical certificate stating the reason for absence and thereafter provide a like certificate [each week] to cover any subsequent period of absence. [The Employer reserves the right to ask the Employee at any stage of absence to produce a medical certificate and/or to undergo a medical examination].

  4. The Employee will be paid his normal basic remuneration (less the amount of any statutory sick pay or social security sickness benefit to which he may be entitled) for (state number) working days in total in any one sick pay year which runs from (date) to (date). Entitlement to payment is subject to notification of absence and production of medical certificates in accordance with clauses 7.1 to 7.3.

  5. The Employer operates the Statutory Sick Pay scheme and the Employee is required to co-operate in the maintenance of necessary records. For the purposes of calculating the Employee's entitlement to Statutory Sick Pay ‘qualifying days’ are [those days on which the Employee is normally required to work]. Payments made to the Employee by the Employer under sick pay provisions in satisfaction of any other contractual entitlement will go towards discharging the Employer's liability to make payment to the Employee under the Statutory Sick Pay scheme.

PENSION
  • Employees...

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Employment Law