Are your contracts up to date?

When an owner sets up their business, they will want to make sure they have everything in place for their staff. But as the years go by and everyone is busy dealing with all the regulations that occur with running a business, often they don't revisit the staff employment contracts or handbook. This could prove to be a big mistake.

I have visited many companies and reviewed their employment documents, only to find that they are seven or eight years out of date. During this time there have been so many changes in employment legislation, which include statutory rights for employees that the law says you must provide.

Often a common thing I find is that some companies choose not to issue contracts to staff, only giving offer letters to new employees stating their hourly pay rate and working hours. To make sure that you are legally protecting your business, you need to issue a proper contract of employment that clearly outlines the terms and conditions of the employment, which forms the basis of the employment relationship.

Contracts need to be issued to staff within eight weeks of them starting their employment with you. A contract is made once the offer of employment is accepted. Some statutory rights are effective immediately, although most statutory rights don't apply until the employee has actually started in your workplace. Ideally, the contract should be issued before the new employee starts work.

It's also a good idea to have an employee handbook that you can issue to all staff when they first start working with you. It's a simple practice to put into place, and something that could save you a lot of time and problems in the future. This handbook can outline to all your staff what is acceptable and what is unacceptable at work.

We have come across several companies that have problems with staff smoking or using mobile phones. A handbook is an ideal place where you can put policies into place to help protect yourself from problems such as these.

To make sure that you don't get caught out, I recommend that you review your contracts of employment and employee handbook every year. If you don't have employment contracts or handbooks already within your business and you want to introduce them, you will need to consult with your existing staff and make sure that they understand and agree with the terms that are outlined.

There have been so many changes lately in employment law, it is hard to keep up to date, especially when you have a business to run. And let's face it, Human Resources can be incredibly time-consuming and confusing and not a priority to you when are busy running a company. Having all these practices in place and keeping them up to date could save you from issues arising in the future - and who knows, it may even save you from a costly tribunal!