Why you need an employment contract whether you’re the hirer OR the employee

Employment contracts. We’ve all (hopefully) dealt with them pretty often, whether you’re an employer or an employee. But WHY is it so important that we actually need them?

Well, there are a few reasons. But let’s put it into a bit of a story, so you can see just how it works…

Sarah was hired

Sarah didn’t have an employment contract when she started.

First things first this is actually illegal now - in 2020, the UK government made it a legal requirement to have these contracts in place when an employee begins their job role.

Sarah came across a huge issue when working with the employer after a few years and was sadly fired.

Sarah took this to the employment tribunal. Not only does Sarah have a case for unfair dismissal (which puts the employer in the💩) because proper procedure wasn’t followed when she was let go, but the employer is also having their wrists slapped by the tribunal for not giving her a contract, and they've now created a situation that causes stress and financial hardship for Sarah, the employers business and for the employer...not good for their wallet or reputation.

Amber was hired

Amber DID have an employment contract in place from the get go of her employment, a legal compliance tick for the employer, and protection in place for Amber.

She had a bit of an issue that was sorted straight away - without an employment contract and the help of HR, this could have turned into another Sarah situation. Proper procedure was followed, there was no need to take further action - Amber is happy, the employer is happy, life is good!

Moral of the story?

IF ONLY Sarah had an employment contract at the very beginning of her employment. It would save a lot of time, energy and unnecessary stress for both parties (and lot of cash for the employer and Sarah)💰

Don't hire an employee without an employment contract. Don't go into a job without an employment contract

The risk is not worth taking no matter what side of the coin you're on...which would you rather be, Sarah or Amber?