The vast majority of employment contracts in the UK are verbal. The Employment Rights Act 1996 merely requires that an employee be given a statement of their main particulars of employment (in two instalments if desired) by the time they have been in employment (continuously) for two months. (It even requires that one be sent to someone even if his employment ends before the end of the period within which the statement is required to be given)
Such a statement has colloquially become known as the “contract of employment” but it is no such thing – it is a statement of main particulars. It is good evidence as to what the actual contract might be but it is not itself a contract – for a start employees can only be asked to sign for receipt of the statement, not that they agree to it.
The contract of employment may be so much more than the statement – by definition “main particulars” must mean that some are not included. Indeed the ERA 1996 defines what those main areas are. A contract can be defined as “offer, acceptance, and consideration.” Thus something in the job advert such as a company car or shares; something said at the interview; and something included in the job offer letter could all form part of the contract since they all together make-up the offer. The contract does not “come into force” however until it is accepted.
Once it is accepted it can be terminated by lawful notice. So what’s in the contract? A contract which states you will be entitled to receive one week’s/month’s notice after one month’s employment means that the contract can be terminated before that month is up without notice. However if the failure to give/pay any notice was challenged in Tribunal, the Tribunal would have to infer into that contract a “reasonable” period of notice – probably one week. To avoid such an inferred period of notice words to the effect that “no notice shall be given/be entitled to be received under one month’s service,” would have to be included.
Even where a job offer is made and accepted and someone resigns from their current post, that contract can be terminated by lawful notice (or pay in lieu). Damages are normally limited to the notice period even though, if the offer is withdrawn, the individual is unable to withdraw their notice to their current (past) employer and consequently find themselves totally unemployed. If the offer has been made but not accepted then there is no contract (of employment) in existence and the offer could easily be withdrawn by communicating the revocation (ideally in writing) to the job offer recipient.
For employers it means that you should ensure your “contracts” comply with the ERA 1996 and that in all areas inside and outside of the statement of main particulars of employment it is clear, concise and unambiguous.
