What is the Difference Between an Employment Contract and a Written Statement of Particulars?

Summary

• Employment contracts are legally binding agreements that exist from the moment a job offer is accepted, even without being written down.
• Employers are legally required to provide a written statement of particulars – a two-part written document covering key employment terms – within specific timeframes.
• The principal statement must be provided on or before the employee’s first day; the wider written statement must follow within two months.
• This article is a plain-English guide to employment contracts and written statements of particulars for Australian business owners operating under employment law obligations.
• The content is produced by LegalVision, a commercial law firm that specialises in advising clients on employment law matters.

Tips for Businesses
Combine your employment contract and written statement of particulars into one document to streamline compliance. Provide the principal statement on day one and the wider statement within two months. Review both documents when employment terms change and notify employees of updates within one month.

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On this page

• What is an Employment Contract?
• What is a Written Statement of Particulars?
• What Happens If You Do Not Provide a Written Statement of Particulars?
• What Are the Key Differences Between an Employment Contract and a Written Statement of Particulars?
• Key Takeaways
• Frequently Asked Questions

In the world of employment law, two crucial documents often cause confusion: the employment contract and the written statement of particulars. While seasoned employers may be well-versed in the former, the latter might raise a few eyebrows. Though interrelated, these documents serve distinct purposes in the employer-employee relationship. This article aims to demystify both concepts, shedding light on their key differences and why understanding them is vital.

Employers commonly integrate the written statement of particulars with the employment contract to create a single consolidated document. The written particulars, which are statutory requirements under section 1 of the Employment Rights Act 1996, include: job title, remuneration, working hours, and notice periods. This approach enhances administrative efficiency and ensures compliance with statutory requirements while having all of the necessary information in one centralised place.

What is an Employment Contract?

An employment contract is a legal agreement between you and your employee regarding their employment. It sets out your employees’ rights and duties in the workplace, as well as your corresponding obligations as an employer.

An employment contract begins as soon as new employees or workers accept the job you offer them. Additionally, while the contract does not have to be in writing, it must lay out your employee’s:

• conditions of employment;
• employment rights;
• responsibilities in their employment; and 
• their employment duties.

What is a Written Statement of Particulars?

A written statement of particulars lays out the main conditions of your employee or worker’s employment with you. In this sense, a statement of particulars is evidence of the employment contract.

The written statement of particulars consists of two documents:

• the ‘principal statement’, which is the primary document; and
• the wider written statement.

The law states that you must give your employees and workers a written statement of particulars.

The Principal Statement

You must give your employee or worker their principal statement on or before their first day of employment with you, regardless of the number of hours they work.

The principal statement must contain the following information:

• your name and address and your employee or worker’s name;
• the job title, description and start date, and, if the employee is already employed by you, the date of their previous job;
• the rate of pay;
• days and hours of work, including any variance and requirements to work Sundays, nights or overtime;
• place(s) of work, including any potential for relocation;
• the duration of their job with you, including any specific end date;
• any probationary period length and conditions;
• any mandatory training, including details of who pays for this; and
• other benefits such as, for example, lunch vouchers.

In the principal statement, you do not have to include:

• sick procedures including pay;
• information about other paid leave such as maternity leave; and
• notice periods.

In saying that, you must give your employees this information before their first day of employment with you.

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The Wider Written Statement

You must give your employee or worker their wider written statement within two months of starting their employment with you. The wider written statement must include:

• pension and pension scheme information;
• non-mandatory training which you provide;
• disciplinary and grievance procedures; and
• collective agreements, which are agreements you may have with your employees’ representatives that let you negotiate any terms and conditions of their employment with you.

If you decide to make any changes to the written statement during your employees’ employment with you, you must tell them about these changes within one month.

What Happens If You Do Not Provide a Written Statement of Particulars?

Failing to provide a written statement of particulars is a breach of your legal obligations under the Employment Rights Act 1996. An employee can make a claim to an employment tribunal if you fail to provide the statement or if it is incomplete.

The tribunal can award the employee up to four weeks’ pay in compensation. This applies even if the employee has no other claim against you.

You do not need to wait for a dispute to arise. Providing the statement on time protects you and sets clear expectations from day one. It also reduces the risk of misunderstandings about pay, hours, or working conditions later on.

If you are unsure whether your current documents meet the legal requirements, review them before you hire your next employee.

What Are the Key Differences Between an Employment Contract and a Written Statement of Particulars?

An employment contract and a written statement of particulars are two separate but related parts of the employment relationship between you and your worker. The employment contract is the agreement between you and your worker with the main terms and conditions of the employment. On the other hand, the written statement of particulars relates to the contract but contains more information.

For ease of understanding, here are some key points to help you understand the difference between the employment contracts and the written statement of particulars:

Key Takeaways

As an employer, you must be aware of the difference between a contract of employment and a written statement of particulars. Not only should you be mindful of the difference, but you should also know what the statement of particulars is and the rules about it.

For example, there is essential information that the statement of particulars should detail, such as the usual hours your employee or worker works and their place of work. You are also under a legal requirement to provide a written statement of particulars to your employees and workers within a given timeframe.  

LegalVision provides ongoing legal support for businesses through our fixed-fee legal membership. Our experienced employment lawyers help businesses manage contracts, employment law, disputes, intellectual property, and more, with unlimited access to specialist lawyers for a fixed monthly fee. To learn more about LegalVision’s legal membership, call 0808 196 8584 or visit our membership page.

Frequently Asked Questions