Help with filling out contract

[acar]

Hi all,

I'm just about to take on my first employee with a zero hours contract.

I've downloaded the contract from simplydocs. I need help filling it out and generally making sure that I am complying with legislation.

Where do I go for help with this?

Many Thanks

Aaron

 

[ilclifford72]

Whilst zero-hours contracts are useful, they are also not a perfect situation and have a number of pitfalls.

One important issue to consider is the hours actually worked, for example:

1. It is possible for people working under such contracts to qualify for other statutory rights relating to their employment. If the worker is working similar hours on a regular basis, since they can claim they have a fixed term contract and insist that you continue with these hours.
2. To mitigate this risk you should use timesheets to record the hours/days worked and ensure these vary over time.

Other important factors to consider include:

1. If the worker doesn't undertake any work for a set period, include a clause to say the contract is considered terminated.
2. If the worker earns sufficient wages over a rolling 8-week period they are still entitled to Statutory Sick Pay.
3. Minimum wage legislation still applies.
4. They still accrue holiday pay at the rate of 12.07% of their hours worked, whether this can be paid or must be taken as paid time off is a long discussion, however if you choose to pay it list it separately in the payslip and don't include it in the hourly rate.

I hope this information is useful and give some insight into the pitfalls. Finally glad to see a business that's hiring, we need those!

 

[Employment Law Clinic]

I've downloaded the contract from simplydocs. I need help filling it out and generally making sure that I am complying with legislation.

Where do I go for help with this?

Don't you get all this as part of the contract? What use is it if you need to fill it out and ensure it complies with law?

[*]They still accrue holiday pay at the rate of 12.07% of their hours worked, whether this can be paid or must be taken as paid time off is a long discussion, however if you choose to pay it list it separately in the payslip and don't include it in the hourly rate.

You can't use a flat 12.07% figure, as the hours worked will vary each week. Holiday pay should be based on the previous 12 weeks hours worked.



Karl Limpert

 

[ilclifford72]

You can't use a flat 12.07% figure, as the hours worked will vary each week. Holiday pay should be based on the previous 12 weeks hours worked.

By definition the hours vary, it is a zero-hours contract, but 12.07% as a base figure equates to the statutory entitlement of 28-days.

If the person works 16 hours they accrue 16 x 12.07% hours of holiday pay. It's really that simple.

In terms of basing it on the previous 12 weeks hours worked, that adds an unnecessary layer of complexity, which as far as my understanding goes, does not represent compliance with the law as it stands.

 

[Employment Law Clinic]

In terms of basing it on the previous 12 weeks hours worked, that adds an unnecessary layer of complexity, which as far as my understanding goes, does not represent compliance with the law as it stands.

Unnecessary only if the employer wants to ignore s.224 of the Employment Rights Act 1996 - the law as it stands.



Karl Limpert

 

[ilclifford72]

Unnecessary only if the employer wants to ignore s.224 of the Employment Rights Act 1996 (ERA) - the law as it stands.

My point was about holiday pay and entitlement to it whilst engaging staff on zero-hours contracts.

As far as I am aware holiday pay is governed under the umbrella of the Working Time Regulations 1998 (WTR) and that s.224 has a broader scope and is used to define "a week's wages". The WTR references the ERA as a basis for calculation.

Please do not over complicate this issue since this is business forum for business owners. If we don't encourage business owners to take on more staff we'll have a lot more to worry about with a stagnating economy.

In my view key points to be aware of are as follows:

1. Statutory entitlement for most workers is 28-days per annum.
2. Holiday pay should be paid at the same rate as an employees standard hourly rate.
3. Generally accepted basis for calculation is 12.07% of hours worked.
4. Rolled-Up Paid Holiday (RUHP) should not really be considered due to a number of European Court of Justice rulings. However, if you do use RUHP make sure it is listed separately on the payslip.
5. During their first year of employment, employees do not have a right to have paid-time off exceding what they have accrued. After this they can in certain circumstances so ensure any written agreeement has a clawback clause.
6. Casual workers should have their holiday year based on their start date, sadly this is an administrative nightmare.
7. Make you workers aware they are entitled to holiday and build it into your budgets appropriately.
8. Have a policy for sickness absence and holiday pay, some useful resources are available for this. They may prevent issues down the line.

Hope this helps the OP.

PS If your a law firm advising on employment matters, an offer of assistance would go a long way to being a constructive response. For example a base template that can be used for a low fee?

 

[acar]

ilclifford72 many thanks for the information.

I contacted ACAS but they were unable to run through the contract with me, but informed me that I may be able to get free legal advise with my employers liability insurance, which I'll look into. Other than that i'm considering hiring some1 in the legal profession to help me fill it out.

 

[Employment Law Clinic]

My point was about holiday pay and entitlement to it whilst engaging staff on zero-hours contracts.

As far as I am aware holiday pay is governed under the umbrella of the Working Time Regulations 1998 (WTR) and that s.224 has a broader scope and is used to define "a week's wages". The WTR references the ERA as a basis for calculation.

Actually, not a, but the basis to define a week's wages – see Regulation 16 of the WTR.

Please do not over complicate this issue since this is business forum for business owners. If we don't encourage business owners to take on more staff we'll have a lot more to worry about with a stagnating economy.

Over complicate? You're giving out bad advice that could lead acar into an employment tribunal, so I correct that, and you ask me not to complicate things? I suppose it would be easier just to pretend employers can do what they want, or follow any advice they read on a forum? Alas, I actually try to only give advice where I know what I'm advising on, rather than “as far as I'm aware” advice! I find helpful advice is more beneficial to any employer, let alone new employers.

[*]During their first year of employment, employees do not have a right to have paid-time off exceding what they have accrued. After this they can in certain circumstances so ensure any written agreeement has a clawback clause.

Interesting idea, and sensible in practice... but only if the contract allows for it. Unless the contract is for a fixed term, the assumption is that the employee will be entitled to their year's entitlement, as there is no indication they won't work for this duration.

[*]Generally accepted basis for calculation is 12.07% of hours worked.

Shame the law doesn't reflect this for workers on variable hours – it would be much more convenient.

[*]Have a policy for sickness absence and holiday pay, some useful resources are available for this. They may prevent issues down the line.
[/LIST]

I would hope the document the OP purchased provides for this at least!

PS If your a law firm advising on employment matters, an offer of assistance would go a long way to being a constructive response. For example a base template that can be used for a low fee?

An offer of assistance? Don't you think I try to offer assistance on this forum on occasion. Perhaps that's what led to the 652 thanks my previous posts have attracted.

I do try to keep my advice to factual advice, not as far I'm aware advice though, which seems to be both useless and in your case completely wrong.


I don't offer templates at all, so certainly won't here, but this is what the OP apparently bought, so why they would need another one is beyond me. If I were to offer templates, they would be free, but as I provide links to free templates from my website, the effort appears pointless.

We can see from acar's post though how useless templates are!


Personally I never recommend templates, as every employment situation is different, and the contracts should recognise that. Bespoke employment terms require, to my mind at least, bespoke employment terms – with the customer not having to come onto a forum to find out how to complete the bloody thing!


If the OP did want to check how much wages should be paid for any week's holiday, there is a tool for that. It doesn't come for a low fee (or any subscription, requiring an email address, or anything else), but instead is freely accessible to absolutely anyone with an internet connection, and can be found at: http://employmentlawclinic.com/annual-leave-calculator/



p.s. I'm not a qualified lawyer, so perhaps no value added by my post, but just perhaps there has been... at least to correct ilclifford72's nonsense.



Karl Limpert

 

[Employment Law Clinic]

ilclifford72 many thanks for the information.

I contacted ACAS but they were unable to run through the contract with me, but informed me that I may be able to get free legal advise with my employers liability insurance, which I'll look into. Other than that i'm considering hiring some1 in the legal profession to help me fill it out.

Acar,

Is the document that you paid for from SimplyDocs really that bad/complicated that you can't even fill out the name/address/job of the employee? I've never seen one of these, so have no idea, but surely you shouldn't need legal advice to complete a template contract you've already paid for online!



Karl Limpert

 

[Bill Ryan]

Acar,

Is the document that you paid for from SimplyDocs really that bad/complicated that you can't even fill out the name/address/job of the employee? I've never seen one of these, so have no idea, but surely you shouldn't need legal advice to complete a template contract you've already paid for online!
Karl Limpert

It may be a case of the "Ikea syndrome".

All the instructions are there but can you actually follow them.

PS. I would like to say that Karl's advice and views on employment matters has always been good as far as I am concerned.

 

[Employment Law Clinic]

It may be a case of the "Ikea syndrome".

All the instructions are there but can you actually follow them.

PS. I would like to say that Karl's advice and views on employment matters has always been good as far as I am concerned.

Thank you Bill, but is that "A typical lawyers answer... No value-add..." response? (I know you don't practice as a barrister these days, but illadvisedclifford & acar might not! )


In my experience, Ikea provide copies of their instructions online. Never accessed Simply Docs, so no idea about the level of service they provide.


However, I do know that bespoke contracts from a member on here come not only ready for issue to the staff (no need for any entries from the customer), but also with comprehensive guidance to the employer on how to apply the policies too!

Allowing for the value they bring to an employer, they're a low fee too.





Karl Limpert

 

[acar]

Hi all,

The contract does give options, values etc. I just want to make sure that I enter everything correctly and to the benefit of my business so there are no surprises down the line.

I'll start filling it out tmw what I can and then post on here with bits i'm struggling with if thats ok with you guys.

 

[acar]

heres the first question:

TERMS AND CONDITIONS OF ZERO HOURS EMPLOYMENT
BETWEEN

(1) <<Name of Company>> a company registered in <<England and Wales>> under registration number << >> whose registered office is at <<Address>> (hereinafter referred to as "we", "us" or "the Company")

The clause above. I am not a ltd company, i'm a sole trader so what do I enter? Do I just put NA for the fields that don't apply?

 

[Bill Ryan]

... know you don't practice as a barrister these days..
Karl Limpert

Actually Karl I went back into practice at the end of June. Missing court and tribunal work.

 

[Employment Law Clinic]

heres the first question:

TERMS AND CONDITIONS OF ZERO HOURS EMPLOYMENT
BETWEEN

(1) <<Name of Company>> a company registered in <<England and Wales>> under registration number << >> whose registered office is at <<Address>> (hereinafter referred to as “we”, “us” or “the Company”)

The clause above. I am not a ltd company, i'm a sole trader so what do I enter? Do I just put NA for the fields that don't apply?

I don't think trying to advise on snippets of a contact is particularly sensible via a forum, but I'll try to help.

Surely you can just put your name/trading name, and delete all references to a ltd company: "acar (hereinafter referred to as “we”, “us” or “the Company”)".


Karl Limpert

 

[YourLaw.co]

I haven't been here for a while. Good to see that people still don't listen to what the law is!!!

I could do with some work if anyone has any ET advocacy that needs doing!

Francis

 

[acar]

Below i'm given the choice as to what clause to put in. My business will need labour on demand so the first clause is more appealing. I would try to give staff 24 hours notice but cannot gaurantee is there a legal requirement?. And I don't want to pay staff if work is withdrawn, do I have to?


4.4 [We will give you as much advance notice as is reasonably practicable (normally not less than 24 hours) of the hours you will be required to work. In the event that the request made to you is withdrawn within 24 hours of that work commencing, we will pay you for [4] hours work at your normal hourly rate.]

OR

[We will normally prepare and circulate in advance a 4-week cycle to notify you of the hours you will be required to work in that cycle, subject to variations in the workload of our business.]

Can I just delete everything and put this in?

[We will give you as much advance notice as is reasonably practicable (normally not less than 24 hours) of the hours you will be required to work.


Thanks

 

[acar]

bumper t bump

 

[Employment Law Clinic]

I don't think trying to advise on snippets of a contact is particularly sensible via a forum

bumper t bump

Bump



Karl Limpert

 

[YourLaw.co]

The issue that you are asking about is a good illustration of why 'standard' contracts and other legal documents are usually a waste of time. I very much agree with Karl, it is impractical to give any advice on snipits of a contract. Any contract would, if the need arrises, be construed as a whole and one part may affect another.

As with any other contract you are free to contract on whatever terms you wish in an employment contract as long as the law does not prohibit it. There is nothing, that I know of, that would prohibit the arrangement that you suggest above. However, do you really need this arrangement in the way that you have set it out. I could see a disgruntled employee telling a Tribunal, as part of some other complaint, that you were treating him badly by always messing his hours about just to annoy him. That may fit your term but it wouldn't look good for you.

What you need is someone to draft you a whole contract. The cost would be far less than even preparing for a Tribunal hearing!

Francis

 

[acar]

I think you are right, i've just emailed a legal company in my area. I just hope its not to expensive.