Formation of the Contract Flashcards
Does a contract of employment need to be in writing?
No, oral contracts are equally as valid as a written contract.
What is the minimum written statement of terms required by s1 ERA 1996
s1 ERA 1996 requires that all employees who have been employed for at least one month, must be given a written statement containing certain particulars.
The statement must be given within 2 months of the start date of employment.
From April 2020, s1 statements must be given to workers and employees on their first day.
What must be included in a s1 statement?
- Identify the parties
- Start date of employment
- State if previous employment counts for continuity purposes
- Scale or rate of remuneration, or method calculation
- Pay intervals (weekly/monthly)
- Hours of work
- Holiday, sickness, pension
- Notice period (mutual)
- job title/description
- Place of work
- Length of appointment (if not permanent)
- any collective agreements
The s1 statement must contain a note explaining the disciplinary rules and procedures, or refer to a document (such as an employee handbook) which specifies the rules.
Is a s1 statement a contract of employment?
No, but it is evidence of the terms of a contract of employment.
In Gascol Conversions v Mercer (1974), if an employee signs a receipt for their written statement as being their contract of employment, it appears that this document may be treated as a signed binding contract .
What action can an employee take if a s1 statement is not provided?
The employee can refer the matter to an ET, which can order that the information be supplied (s11 ERA 1996).
If an employee has a substantive claim (such as discrimination), the ET can also award the employee two to four weeks pay as compensation for failure to provide the s1 statement.
