Employment Contracts

Employment Contracts and Written Statements of Employment Particulars
An employment contract is established as soon as your Personal Assistant (PA) begins working with you. Simply put, an employment contract is an agreement in which a worker agrees to perform specific tasks for their employer in exchange for pay and other benefits.
By starting work, your PA accepts the terms and conditions you have provided, whether communicated verbally or in writing, along with the implied terms that are part of any employment relationship.
Both you and your PA are bound by the terms you have offered, and they have accepted. By law, your PA must receive a written statement of employment on their first day, outlining the 'main particulars' (key terms and conditions) of their employment.
What is an Employment Contract?
An employment contract is an agreement between you and your PA that outlines their employment rights, responsibilities, and duties (their terms and conditions) while working for you. These contract terms are legally binding.
Contract terms can be verbal, written, or implied, and they may include:
- Verbal agreements made during an interview or over the phone.
- Written details in an employment contract or written statement of employment.
- Information provided in an advert or job description.
- Details included in an offer letter.
- Legally required terms, such as the PA being paid at least the minimum wage.
- Implied terms (explained below).
- Information provided in a handbook or displayed on a notice board accessible to your PA.
All of these terms together make up the employment contract even though they may not all be in writing.
An employment contract is created as soon as the PA accepts your job offer. However, a written contract must be issued to your PA on their first day of work.
You and your PA are bound by the employment contract until it ends (usually by one of you giving notice) or until the terms are changed (usually in an agreement between you and your PA). If either you or your PA breaks a term of the contract, the other is entitled to sue for breach of contract.
Written Statements of Employment
A written statement of employment outlines the key terms and conditions of your PA’s employment. It is a legal obligation for you to provide either a written employment contract or a written statement of employment on the first day your PA starts working with you.
If you hire a Self-Employed individual or an Agency Worker, you are not required to provide them with a Written Statement of Employment.
What information should I include in the Written Statement of Employment?
The written statement of employment does not need to include all of your PA’s employment terms and conditions. However, by law, it must contain the following information:
- Your full name and the PA’s full name
- The employment start date
- The location of employment (e.g., your address)
- The rate and method of pay (including payment schedule, e.g., "monthly on the last Friday of every month by cheque")
- The hours of work
- Holiday entitlement
- The work location (including the address)
- Sick pay arrangements
- Notice periods that apply
- Information about disciplinary and grievance procedures
- Pension arrangements for employees
- Details of the type of employment contract (e.g., permanent, fixed-term with end date, casual, or zero hours)
Ending the Employment Contract
There are several reasons why your PA may end their employment with you:
- They resign
- Their fixed-term contract expires
- You dismiss them following a disciplinary process
- They retire
- You make them redundant
In most cases, employment ends because your PA resigns. However, regardless of the reason, you need to consider several factors, including notice periods, references, calculating final pay, and following proper dismissal procedures (if it involves a disciplinary issue).
For resignations, you should obtain written confirmation from your PA confirming their intention to resign and the date of resignation. You should then inform them of the start date of their notice period (the day you accept their resignation) and the final day of employment (the end of the notice period).
Breach of Contract
The Employment Contract is a legally binding agreement between you and your PA. A breach of contract occurs when either you or your PA fail to meet the terms of the agreement, such as your PA not working the agreed hours or you not paying their wages. A breach can involve a verbally agreed term, a written term, or an ‘implied’ term of the contract.
If you believe a breach of contract, by either you or your PA, has occurred, seek advice from your insurance provider, who can offer guidance tailored to your specific situation.
Additional information regarding employment contracts can be found at: https://www.gov.uk/employment-contracts-and-conditions.