11 November 2019

As Arti and Collette’s limited company begins to grow, they feel it is the right time to hire employees to assist in growing the business. Arti knows from his own experience that employers normally issue a contract and policies to new employees but he has no idea where to begin.

He and Collette meet with Caroline Carr of BTO’s Employment Law team for some advice. Caroline points out that it is crucial for employers to get their employment contracts and policies right and to issue them at the outset of the employment. She advises that this will follow on from a proper recruitment process and to ensure that job offers are conditional upon satisfactory references, to protect the business.

Caroline advises that she will draft a contract of employment for the new recruits which will cover all legal requirements and meet the particular needs of the business. This will include business protection clauses on confidentiality and restrictive covenants to protect the business if the employment comes to an end. It is better to anticipate these issues in the contract than to have a crucial employee resign and then realise the business could have protected itself in the contract from the employee seeking to contact and poach Arti and Collette’s clients.

Arti and Collette are advised that tailored contracts are required to ensure compliance with the law, but also to ensure that employees know what is expected of them as regards conduct and performance. Caroline explains that many grievances and employment tribunals arise due to simple disagreements over what is required by the employer or employee under the employment contract. Arti and Collette are, therefore, doing the right thing to invest time in the contracts and policies from the outset.

Caroline recommends that they also puts in place for their employees a tailored Employee Handbook setting out holiday pay and sick pay provisions, plus the employment policies required by law and others relevant to the business, including a disciplinary and grievance policy and an equal opportunities policy.

Arti and Collette are advised that Caroline offers a contract and policy review service, which will ensure that the contracts and policies are kept up to date as the business continues to grow and staff roles change.

Arti and Collette are pleased that everything will be covered, but they are concerned by their limited employment law knowledge as the business does not have its own in house HR function, at least during the early stages. Caroline explains that BTO’s Employment Law team do not only deal with contentious tribunal cases. The team also provides day-to-day advisory and HR advice to businesses on various issues such as holiday pay, absence management and performance management.

Caroline also invites Arti and Collette to attend the team’s employment law update sessions which are regularly offered to employer clients. Arti and Collette feel reassured that the team can provide ongoing advice and assist them in keeping their employment law knowledge up to date.

Contact: Caroline Carr Partner cac@bto.co.uk T: 0141 221 8012