Employment contracts are a crucial part of any working relationship, yet they are often misunderstood by both employers and employees. Misconceptions about these contracts can lead to legal disputes, unfair treatment, and unexpected obligations. We aim to clarify common myths surrounding employment contracts to help businesses and workers navigate their rights and responsibilities with confidence.
Myth 1: a contract must be in writing to be legally binding
Many believe that an employment contract is only valid if it is in writing. In reality, a verbal agreement can also form a legally binding contract, provided that there is a clear offer, acceptance, consideration (such as salary), and mutual intent. However, written contracts offer clarity and prevent disputes, making them the preferred option and employers are legally obliged to provide employers and workers a written statement of employment particulars within 2 months of the start of employment
Myth 2: employers can change the terms of a contract without consent
Some employers assume they can modify employment contracts unilaterally. However, any changes to fundamental terms, such as salary, working hours, or job responsibilities require the employee’s consent. Failing to get agreement can lead to breach of contract claims.
Myth 3: if it’s not in the contract, it doesn’t count
Employment contracts do not always include every right or obligation. Employees are entitled to statutory rights, such as the national minimum wage, holiday entitlement, and protection from unfair dismissal, regardless of whether these are explicitly stated in their contract.
Myth 4: fixed-term employees have fewer rights than permanent staff
There is a common misconception that fixed-term employees have fewer protections. In truth, UK law ensures that fixed-term workers are entitled to the same rights and benefits as permanent employees, including protection against unfair dismissal and redundancy after two years of service.
Myth 5: a probation period means an employee has no rights
Probation periods are often misunderstood as a time when an employer can dismiss an employee without consequence. However, employees on probation are still entitled to statutory rights, such as protection against discrimination and entitlement to the national minimum wage and statutory sick pay.
Understanding employment contracts is essential for both employers and employees to ensure fair treatment and legal compliance. If you have questions about an employment contract or need assistance with a workplace dispute, we’re here to help.
Our expert team can provide tailored advice to protect your rights and ensure your agreements meet legal standards.
For more information or to speak with us on 01792 468684 or email enquiries@pgmsolicitors.co.uk.
