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pay and contracts of employment

Many of your rights at work will depend on what it says in your contract of employment: these are your contractual rights. You'll find information in this section to help you understand the key terms of your employment contract.

The terms of the contract of employment

Many of the rights and duties that bind both employers and employees are to be found in the contract of employment. They are called terms of the contract.

Some of these terms are express terms: that is they are expressly stated either orally (say at the initial interview) or in writing.

The law states that certain express terms must be put in writing and handed to the employee in the form of a written statement of particulars this must occur within eight weeks of the individual starting work.

Express terms include:

  • pay
  • hours
  • holidays
  • length of notice required to end the relationship

There are other contractual terms, known as implied terms. These are not expressly stated because they are fairly obvious to both parties to the contract, and/or because they have become normal practice at work, without ever being recorded in writing.

Occasionally the courts will imply a term in a contract of employment where an important term has been left out.

Implied terms include statutory rights, such as the right to equal pay (i.e. the right to be paid the same as someone of the other gender who is doing the same job, a similar job, or a job of equal value to you).

Mutual trust and confidence

An important element of the contract of employment is the concept of mutual trust and confidence. This is also an implied term of the contract of employment.

The law recognises that the employer has a duty to trust the employee and treat him or her with respect and fairly.

If the employer fundamentally breaches that trust and confidence, an employee may be justified in treating his or her contract as having been unlawfully breached. In such a situation, where the employee feels that she has no alternative, she may choose to resign and treat herself as having been dismissed.

Custom and practice

Some terms may be implied through custom and practice in a particular trade or with a particular employer. For example, it may become customary (over a period of time) to leave early on a Friday, or to add an extra day to a Bank Holiday. In order for an entitlement to become established by custom and practice, it must usually be long-standing, have been continuously applied, automatically given, well-known and expected to be received.

Also, sometimes custom and practice is used to interpret an express term. For example, what "reasonable overtime" in a written contract means may be best understood by looking at how the organisation operates its overtime policy.

Further information

For more on pay, taxes, pensions and expenses, visit the your money section.