A contract is a legally binding agreement. This could be a 'contract of employment' or a 'contract of service'.
An employment contract can be agreed:
- verbally – this is when it's agreed through conversations
- in writing – for example, a job offer letter or through emails
Parts of an employment contract can also be agreed through conduct. This is when people's actions show there's an agreement, even though they have not written it down or spoken about it.
The difference between an employment contract and a written statement
By law (Employment Rights Act 1996), someone has the right to a 'written statement of employment particulars' if they have the legal status of either:
- an employee
- a worker – unless they started the job before 6 April 2020
A written statement includes the main terms of someone's employment, for example pay and working hours.
This document is often referred to as the 'employment contract'. But by law, the employment contract is broader than just the written statement.
For example, an employment contract might also include:
- other clauses – for example about keeping sensitive company information confidential
- the organisation's code of conduct
- policies – for example on social media or data protection (GDPR)
Find out more about the written statement
When the employment contract begins
An employment contract begins when someone starts work.
This is the case even if the employer has:
- failed to provide the written statement
- not put any other parts of the employment contract in writing
The contract might be formed earlier if all the following apply:
- the employer set out the terms of the job in a clear and definite way, verbally or in writing
- the job offer was unconditional or the person met all the conditions – for example, the employer was satisfied with their references
- someone accepted the job offer verbally or in writing
Training
Acas also provides: