{"id":172600,"date":"2022-07-22T03:51:13","date_gmt":"2022-07-22T02:51:13","guid":{"rendered":"https:\/\/legalvision.co.uk\/?p=172600"},"modified":"2022-07-26T09:27:11","modified_gmt":"2022-07-26T08:27:11","slug":"employment-contract-mistakes","status":"publish","type":"post","link":"https:\/\/legalvision.co.uk\/employment\/employment-contract-mistakes\/","title":{"rendered":"Five Common Employment Contract Mistakes Employers Make in England and Wales"},"content":{"rendered":"\n<p><span style=\"font-weight: 400\">An employment contract is one of the most critical documents when managing your staff. This is because an employment contract outlines your employee\u2019s rights and obligations in the workplace. This includes your employee\u2019s various entitlements under employment law, such as pay and leaves entitlements. However, a poorly drafted employment contract could give rise to a dispute between you and your employee. This article will explain five common employment contract mistakes employers make to help you avoid facing a dispute in the employment tribunal.&nbsp;<\/span><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span style=\"font-weight: 400\">1. Failing to Update Employment Contracts In-Line With the Law<\/span><\/h2>\n\n\n\n<p>Employment law is renowned for changing frequently. As a result, you must be aware of any legal changes that will affect your relationship with your employees. However,<span style=\"font-weight: 400\"> employers often forget to ensure their employment contracts reflect current employment law. For example, a contractual term may provide:<\/span><\/p>\n\n\n\n<ul class=\"wp-block-list\"><li><span style=\"font-weight: 400\">a salary that does not meet the <a href=\"https:\/\/legalvision.co.uk\/employment\/national-minimum-wage\/\">National Minimum Wage<\/a>;<\/span><\/li><li><span style=\"font-weight: 400\">a notice period that is not within the lawful minimum timeframe; and<\/span><\/li><li><span style=\"font-weight: 400\">an entitlement that does not provide employees with the legal minimum, such as leave entitlements.&nbsp;<\/span><\/li><\/ul>\n\n\n\n<p><span style=\"font-weight: 400\">If a contractual term is inconsistent with your employee\u2019s minimum legal entitlements under the law, this could give rise to a dispute<\/span>. <\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span style=\"font-weight: 400\">2. Lack of Consistency Between the Offer Letter and the Employment Contract<\/span><\/h2>\n\n\n\n<p><span style=\"font-weight: 400\">When you make a prospective employee an offer of employment, the offer letter should detail information about their role. If the person accepts the offer, you should transfer the details in this letter into the employment contract.&nbsp;A common employment contract mistake that employers make is not keeping the two documents identical. <\/span><\/p>\n\n\n\n<p>If your offer letter is widely inconsistent with the employment contract,<span style=\"font-weight: 400\"> your employees may be confused and let down by differing terms. To avoid this mistake, you should ensure the lawyer who drafts your <a href=\"https:\/\/legalvision.co.uk\/employment\/reviewing-employment-contracts\/\">employment contract<\/a> has access to the offer letter and all other accurate information they require.<\/span><\/p>\n\n\n\n\n<a href=\"#content-next\"\n   class=\"block p-4 mt-10 text-xl font-bold text-center text-white no-underline bg-gray-800 rounded-t-xl\">\n    Continue reading this article below the form\n    <i class=\"text-xl fa-regular fa-arrow-down\"><\/i>\n<\/a>\n<div class=\"px-6 pt-10 pb-12 mb-10 text-center bg-gray-100 rounded-b-xl sm:px-12 test\">\n    <div class=\"mb-8 text-2xl font-bold text-orange\">\n        Need legal advice?\n        <br>\n        <span class=\"text-lg not-prose\">\n                            Call <a href=\"tel:+448081968584\" class=\"not-prose\">0808 196 8584<\/a> for urgent assistance.\n                <br>\n                Otherwise, complete this form, and we will contact you within one 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Including Inflexible Contract Terms&nbsp;<\/span><\/h2>\n\n\n\n<p><span style=\"font-weight: 400\">While you may initially think that including contractual terms can better secure your employees&#8217; rights, employment laws and business models are prone to change. Some issues that arise when you add strict contractual terms include:&nbsp;<\/span><\/p>\n\n\n\n<ul class=\"wp-block-list\"><li style=\"font-weight: 400\"><span style=\"font-weight: 400\">your obligation to follow the contract by the word, which could give rise to a breach if you fail to uphold your obligation; and&nbsp;<\/span><\/li><li style=\"font-weight: 400\"><span style=\"font-weight: 400\">if you want to amend your employment contracts, you can only do so with your employees&#8217; permission.<\/span><\/li><\/ul>\n\n\n\n<p><span style=\"font-weight: 400\">To avoid this mistake, you should state in your employment contracts that your employee must follow your business&#8217; policies. Importantly, you should state that you can amend these policies as you see fit.&nbsp;<\/span><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span style=\"font-weight: 400\">4. Failing to Protect Your Business&#8217; Interests<\/span><\/h2>\n\n\n\n<p><span style=\"font-weight: 400\">While your employment contracts are predominantly in place to protect the relationship between you and your employees, it is essential that you also draft employment contracts to protect your business\u2019&nbsp;interests. For example, your employment contracts should have:<\/span><\/p>\n\n\n\n<ul class=\"wp-block-list\"><li><span style=\"font-weight: 400\">well-drafted <a href=\"https:\/\/legalvision.co.uk\/employment\/workplace-confidentiality\/\">confidentiality clauses<\/a>; and<\/span><\/li><li><span style=\"font-weight: 400\">post-employment restriction clauses.&nbsp;<\/span><\/li><\/ul>\n\n\n\n<div  class=\"box box--icon box--info\">\n    <!-- wp:paragraph -->\n<p>A post-employment restriction clause is only effective where you can enforce them. To be able to enforce a post-employment restriction, they should typically:<\/p>\n<!-- \/wp:paragraph --> <!-- wp:list -->\n<ul>\n<li>be relevant for no more than nine months after the employee has left your employment;<\/li>\n<li>have a geographical limit; and<\/li>\n<li>have gardening leave associated with them.<\/li>\n<\/ul>\n<\/div>\n\n\n\n<h2 class=\"wp-block-heading\"><span style=\"font-weight: 400\">5. Spelling Errors&nbsp;<\/span><\/h2>\n\n\n\n<p><span style=\"font-weight: 400\">While not directly related to employment law, making spelling errors in your employment contracts is a common mistake employers make. However, making these minor mistakes can have huge repercussions. For example, imagine if your employment contract contained an extra zero in your employees&#8217; wage. Although employment tribunals may look at this reasonably and see that it is an obvious mistake, they can still be strict regarding errors made. Therefore, you should read through your draft employment contracts carefully before finalising them and if possible, get them proofread.&nbsp;<\/span><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span style=\"font-weight: 400\">Key Takeaways<\/span><\/h2>\n\n\n\n<p><span style=\"font-weight: 400\">Carefully drafting your employment contracts is important to avoid common mistakes. Employment contract mistakes might ruin the relationship with your workers and escalate to an employment tribunal dispute.&nbsp;<\/span>For this reason, you should: <\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>keep up to date with changes in employment law;<\/li><li>ensure your letter of offer is mostly consistent with your employment contract;<\/li><li>include flexible contract terms; <\/li><li>protect your business&#8217; interests through confidentiality clauses and post-employment restrictions; and<\/li><li>avoid spelling errors. <\/li><\/ul>\n\n\n\n<p><span style=\"font-weight: 400\">If you need help understanding common employment mistakes made by employers in England and Wales, our<\/span> <a href=\"https:\/\/legalvision.co.uk\/employment-lawyers-lp\/\"><span style=\"font-weight: 400\">experienced employment lawyers<\/span><\/a><span style=\"font-weight: 400\"> can assist as part of our LegalVision membership. For a low monthly fee, you will have unlimited access to lawyers to answer your questions and draft and review your documents for a low monthly fee. So call us today on <a href=\"tel:+448081968584\" class=\"AVANSERnumber dynamic-number\">0808 196 8584<\/a> or visit our<\/span> <a href=\"https:\/\/legalvision.co.uk\/membership\"><span style=\"font-weight: 400\">membership page<\/span><\/a><span style=\"font-weight: 400\">.<\/span><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span style=\"font-weight: 400\">Frequently Asked Questions<\/span><\/h2>\n\n\n\n<div class=\"schema-faq wp-block-yoast-faq-block\"><div class=\"schema-faq-section\" id=\"faq-question-1658456218593\"><strong class=\"schema-faq-question\"><strong>What is a typical employment contract mistake made by employers?<\/strong><\/strong> <p class=\"schema-faq-answer\">Employers can make mistakes in their employment contracts. For example, a common mistake is not updating the employment contract regularly. This can mean that your employment contract is outdated and therefore does not properly reflect current employment law.<\/p> <\/div> <div class=\"schema-faq-section\" id=\"faq-question-1658456234239\"><strong class=\"schema-faq-question\"><strong>Why should employers not make employment contract mistakes?<\/strong><\/strong> <p class=\"schema-faq-answer\">By avoiding mistakes in your employment contracts, you can minimise the potential for disputes to arise. <\/p> <\/div> <\/div>\n<div class=\"not-prose m-feedback-prompt\">\n    <!-- Thumbs up\/down bar -->\n    <div class=\"m-feedback-prompt__main\">\n        <div class=\"m-feedback-prompt__title\">Was this article helpful?<\/div>\n        <div>\n            <!--span class=\"m-feedback-prompt__button--text\">Thanks!<\/span-->\n            <button type=\"button\" class=\"m-feedback-prompt__button m-feedback-prompt__button--yes\"\n                    data-analytics-link=\"feedback-prompt:yes\" aria-label=\"Agree\">\n                <i class=\"fa-regular fa-thumbs-up fa-3x\"><\/i>\n            <\/button>\n            <button type=\"button\" class=\"m-feedback-prompt__button m-feedback-prompt__button--no\"\n                    data-analytics-link=\"feedback-prompt:no\" aria-label=\"Disagree\">\n                <i class=\"fa-regular fa-thumbs-down fa-3x\"><\/i>\n            <\/button>\n        <\/div>\n    <\/div>\n\n    <!-- Feedback form -->\n    <div class=\"m-feedback-prompt__form\">\n        <div class=\"m-feedback-prompt__form--thanks \">\n            <div>Thanks!<\/div>\n            <p>\n                We appreciate your feedback \u2013 your submission has been successfully received.            <\/p>\n        <\/div>\n        <form id=\"contact-form\" class=\"m-feedback-prompt__form--form\" action=\"\" method=\"post\">\n            <input type=\"hidden\" id=\"authenticity_token\" name=\"authenticity_token\" value=\"9eb4f72322\" \/><input type=\"hidden\" name=\"_wp_http_referer\" value=\"\/api\/wp\/v2\/posts\/172600\" \/>            <input value=\"https:\/\/legalvision.co.uk\/employment\/employment-contract-mistakes\/\" type=\"hidden\" name=\"currenturl\"\n                   id=\"currenturl\">\n            <input value=\"Five Common Employment Contract Mistakes Employers Make in England and Wales\" type=\"hidden\" name=\"currenttitle\"\n                   id=\"currenttitle\">\n            <label>\n                <!-- display on thumbs-up -->\n                <span class=\"m-feedback-prompt__feedback m-feedback-prompt__feedback--yes\">\n                    Can you tell us <span class=\"font-semibold\">why<\/span> you found it helpful?\n                <\/span>\n\n                <!-- display on thumbs-down -->\n                <span class=\"m-feedback-prompt__feedback m-feedback-prompt__feedback--no text-lg\">\n                    How can we better improve this article?\n                <\/span>\n                <textarea name=\"feedbackmessage\" id=\"feedbackmessage\" required><\/textarea>\n            <\/label>\n\n            <div class=\"m-feedback-prompt__form--error\" id=\"form-submit-error\"><\/div>\n            <button id=\"submit-contact-form-button\" type=\"submit\" name=\"commit\" class=\"m-feedback-prompt__form--submit\"\n                    data-analytics-link=\"feedback-prompt:submit\">\n                Submit            <\/button>\n        <\/form>\n    <\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>An employment contract is one of the most critical documents when managing your staff. This is because an employment contract outlines your employee\u2019s rights and obligations in the workplace. This includes your employee\u2019s various entitlements under employment law, such as pay and leaves entitlements. However, a poorly drafted employment contract could give rise to a<a href=\"https:\/\/legalvision.co.uk\/employment\/employment-contract-mistakes\/\">Continue reading <span class=\"sr-only\">&#8220;Five Common Employment Contract Mistakes Employers Make in England and Wales&#8221;<\/span><\/a><\/p>\n","protected":false},"author":13326,"featured_media":3143,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_relevanssi_hide_post":"","_relevanssi_hide_content":"","_relevanssi_pin_for_all":"","_relevanssi_pin_keywords":"","_relevanssi_unpin_keywords":"","_relevanssi_related_keywords":"","_relevanssi_related_include_ids":"","_relevanssi_related_exclude_ids":"","_relevanssi_related_no_append":"","_relevanssi_related_not_related":"","_relevanssi_related_posts":"1015,1731,1954,2755,2825,2170","_relevanssi_noindex_reason":"","editor_notices":[],"footnotes":""},"categories":[35],"tags":[20,334,525,542],"class_list":["post-172600","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-employment","tag-small-business","tag-employment-contract","tag-employer-obligations","tag-employees"],"acf":[],"yoast_head":"<!-- This site is optimized with the 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