Employment Contracts

4. Non-contractual Terms

4.1 Any job offer can become a contractual obligation.

• Make it clear at any interview that you are not offering a job at that stage.
• Ensure that any job offer letter states that the contract will be governed by written terms and conditions to be provided later.
• Include a written statement of terms and conditions with your letter of employment, to clear up possible misunderstandings.

4.2 Provide job descriptions which allow you the maximum flexibility.

• Include a statement that you reserve the right to amend or add to job descriptions.For example, to accommodate any restructuring of the business, changes in working methods, advances in technology, introduction of shift working, and so on.
• Reserve the right to change the employee's place of work. If you do not, you may be in breach of contract if the business is relocated and you try to get employees to move to new premises.Even if you do this, an employee may be able to claim a 'place of work' redundancy.

4.3 Make it clear if you intend benefits to be non-contractual (and therefore easier to amend or withdraw).

For example discretionary bonuses, private health insurance or dress down on Fridays.

• Identify them as 'non-contractual benefits' in the written statement.Explicitly state that you reserve the right to alter or withdraw them.
• If employees come to have 'reasonable' expectations of receiving a benefit, an employment tribunal or court is likely to interpret it as a contractual entitlement.
• It is good practice to give reasonable notice of your intention to withdraw or alter any benefits, and to discuss your plans with employees.

4.4 Give yourself some flexibility on disciplinary rules and procedures.

• You must comply with statutory procedural requirements, and follow the Acas code.
• Make it plain you intend to be consistent in dealing with problems. But reserve the right to enter the discipline process at different stages, depending on the offence.
• Give some examples of how offences might be handled, but make it plain they are only examples.