Home Business Insights & Advice Basic things you need to know about employment law
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Basic things you need to know about employment law

by John Saunders
26th Apr 21 3:42 pm

We can’t stress enough the importance of employment laws for the health of our economic system. These laws are nothing but the reflection of our values and of our goal to build a society where all people are equal. The best thing about having a solid employment law is that businesses need to observe it closely and to implement best practices to ensure they don’t expose themselves to governmental fines and lawsuits. This is good for both business owners and employees. Find employment lawyers London to ensure that your documentation is correct.

There are four basic documents a business should implement in its practice: The Offer Letter, The Employment Agreement, The Employee Handbook and the Termination Letter (should it be necessary). Each of these documents is meant to secure the protection of the relationship between employees and employers.

The offer letter

The Offer Letter is the first step of any new employer/employee relationship. Even though there’s no law to ask businesses to provide such a document to their future employees, the offer letter can be the ideal base for further negotiations between the two parties. This document should include an exhaustive description of the job responsibilities, important details about the company, specific conditions for employees (such as drug testing and background checks), salary and benefits.

The employment agreement

More often than not, the Offer Letter is so exhaustive that there’s no need for any other agreement between the employee and the employer. Nevertheless, high level positions require the parties to sign an Employment Agreement. Overlooking this document can be a huge mistake.

The Employment Agreement is a legally binding document that benefits both parties. It includes all important information on the job such as wages, benefits, non-disclosure, and termination terms among many other things. Since it is meant to promote trust and stability, the Employment Agreement is an excellent way to start a new working relationship.

The employee handbook

Employers in need for protection should consider investing time and effort into putting together a well written Employee Handbook. This document should contain all procedures, expected workflow, company values, mission and expectations. It should also state the rights and the responsibilities of employees. When properly written, the Employee Handbook is a valuable tool that enables employers to communicate all these important things to their new employees in a clear and effective manner. This document should be reviewed and revised whenever needed. Should your HR department need to fire an employee, this document is the first place to go to, in order to ensure your company won’t get hurt in the process of laying off people.

The termination letter

Last but not least, the Termination Letter is a document that should contain the termination date and the reason for this action. It may also include confidentiality requirements, equipment return requests, as well as any compensations the employee is entitled to. This document can help you end a work relationship in good terms and prevent further issues. Its content should be comprehensive and clear, in order to dissipate misunderstandings and to provide the employee with a good understanding of the reasons for this termination.

Improve your employment practices

Most mid-size businesses overlook the protection an Employee Handbook would provide them. If you want to be on the safe side in regard to the employer/employee relationships, you should take time to create proper documentation. All these documents will help you take your employment practices to the next level, regardless of the size of your company. Think big even if you’re still small!

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