Should You Be Staying up at Nights Worrying about Your Employment Contract?
It’s probably a question of perspective. If you actually have an employment contract, it implies that you have a job and in that sense, you are better off than over 2 million of your fellow countrymen (and women). What would you rather have: no employment contract and no job, or an employment contract that you have to worry about? Most people would gladly opt for the latter. With that in mind, it is surprising how many people don’t really know what is contained in their employment contract, if they have one at all, and what rights (or lack thereof) they’re entitled to. During these challenging economic times in the UK, it is probably a good idea for everyone that has an employment contract to be fully aware of what it contains.
Here, There and Everywhere
You might be excused for assuming that if you have an employment contract, all of the terms and conditions are expressly stated right there. Actually, that is not necessarily the case. Certain rules and regulations may be contained in other documents, such as an employee manual or may not even be in writing and be purely verbal. There may be specific details even in your weekly, biweekly or monthly pay envelope. Other general conditions might even just be implied by common law and the usual practices that are deemed to be normal and customary. It sounds like it leaves a lot open to interpretation, doesn’t it? If, for example, an employer decides to pay a bonus every year, an employee might rightfully expect that bonus to be implied in their contract, even though it’s not mentioned. How this would get resolved in the event of a court action is difficult to predict.
Don’t Assume Anything
In today’s somewhat fragile and dodgy economy, many workers are happy enough to have a job, let alone worry about all the details. And yet, situations arise, either on the side of the employer, or the employee, which are often addressed in a contract. It’s important for every employee to be aware of some of them, just so that they don’t make the wrong assumptions:
- Changes to an employment contract: many employers will insert a clause allowing them to change some of the terms and conditions of an employment contract, just so that they have the flexibility to meet future needs. Some of these may not benefit the employee, however. If you don’t like a particular change in your job, such as perhaps a reduction in pay, the employer may be perfectly within their rights to do so. This is especially true if you continue to work without making an issue of the situation for some time.
- If an employer asks you to relocate, you may feel perfectly within your rights to refuse. Of course you are, but forget the job and you may not be eligible for any redundancy payments. This is especially true if your contract has a “mobility clause”, which allows the employer to actually ask you to relocate.
- You think you deserve a future bonus? You very well might, but if your contract specifies that it would only be paid in the event that you are actively employed as of the bonus date and you leave before that time, you’re probably out of luck. Depending on the timing and size of your expected bonus, you may want to plan your exit carefully.
The Right to Work
In this economy, many people will take whatever job they can get and worry about the terms of the contract later. This is not advisable, but sometimes unavoidable. With the current unemployment statistics, anyone who does find employment is probably elated and is not worried much about anything else. Recruitment agencies are certainly worrying, as their limited income is offset by ongoing monthly bills. They are sometimes unaware that recruitment finance can help them fill the gaps in their cash flow, allowing them to stay current on their obligations and stay in business.
With any luck, our employment outlook will get better, new employees will be able to pay closer attention to their contracts, and recruitment agencies will be able to breathe a sigh of relief.
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Category: Business
