Employment Contracts

by Kate Russell

Employment status

Who is an employee?

Employees are people who have and are bound by a contract of employment.

Employees and employers have various rights, duties, obligations and liabilities under a contract of employment.

If you are the employer, you are bound by the terms of the contract of employment and may be vicariously liable for your employee’s actions in the course of his employment. You must deduct income tax and National Insurance contributions from the employee’s wages, and you have duties in relation to health and safety and unfair discrimination.

Certain things must be included within a statement of the Terms and conditions of employment.

Employees have rights that are not available to workers or self-employed contractors (see A summary of rights in the workplace).

Statutory employment rights are minimum terms. Employer and employee are free to agree better terms between themselves in a contract of employment or collective agreement. When the terms of a contract of employment are broken, either the employee or the employer may have grounds to make a complaint of breach of contract to the tribunal or court.