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Do employees have to sign a contract of employment?
Contrary to popular belief, a contract of employment doesn't have to be in written form to be legally valid. However, if you entered into a contract verbally, you're required to provide each employee whose employment is to continue for more than one month with a ‘statement of written particulars of employment’ within two months of the employee’s start of employment with your business.
This is just one of many example we explore in this specialist guide our team of expert HR consultants in the UK has put together.
There's no statutory obligation to have the contract of employment or the written statement of particulars signed. Once the applicant has accepted the job, there's a legally binding contract of employment between your business and the applicant. The law doesn't require witnesses or a signature to make it valid. What really matters is that there's an offer, acceptance, consideration, and the intention to create legal relations. As ever, getting expert employment law advice when it comes to contracts of employment is vital.
Your business is required to provide each employee whose employment is to continue for more than one month with a ‘statement of written particulars of employment’ within two months of the employee’s start of employment.
Understanding your employees' statutory rights under UK law
You can't use the fact an employee hasn't signed the contract as a way to deny employees their statutory rights, for example to not allow them to take their annual leave.
Equally, it does not give you an excuse to make changes to an employee’s contract, such as reducing their hours or pay.
Making changes to an employee’s contract will, in most cases, require you to obtain the employee’s consent. A failure to do this will normally result in a breach of contract. This is why it is so important to get employment law advice from a specialist.
Follow the best practices for your employment contracts
In any case, it's good business practice to have the employee sign and date the contract and return it back to you. This is mainly so:
It proves you are complying with your legal obligation to provide an employee with a written statement of written particulars.
It clarifies what terms and conditions were agreed between the parties in case a dispute arises in the future.
You should keep a copy for your records and then provide them with a copy for their own records.
Use of electronic signatures for employment contracts
A signature can be handwritten or provided through electronic means. It can take the form of, for example, typing your name in full, using your finger or pen to sign on a touch screen device or electronically pasting in your signature.
Even if you do this, it is recommended that you should give the employee a printed copy or give an electronic version that clearly shows their signature.
