MODEL ZERO

HOURS CONTRACT

You may have lots of different people contributing to the work of your
voluntary organisation or community group.
In most cases your staff will be employees whether they work parttime or for a time-limited period (sometimes referred to as temporary
or fixed-term). Having employees means that the employer must
fulfil certain legal responsibilities and the individuals will benefit from
certain statutory rights.
Others may be self-employed, engaged to provide a specific service,
such as a builder contracted to repair your premises or an accountant
used to audit your annual accounts or a consultant carrying out an
evaluation of a project.
Occasionally you may have casual workers. For example, you
might have a list of people you can call on to fill a gap when someone
is off sick or you may have a register of interpreters who you call on
to carry out interpreting assignments as and when needed or a pool
of crche assistants to look after children during ESOL classes. The
workers can always refuse to do the work and they do not
expect you to regularly provide them with work. Work is only
offered as and when needed. These casual workers will have
certain rights such as the right to receive the national minimum
wage, the right to paid holiday, the right not to be discriminated
against. For these types of workers, you will need a casual workers
contract.
The best way to be sure that a contract is casual is by actually
examining the relationship between employer and worker when the
worker is not working.
The key test as to whether a permanent contract of employment
exists is usually thought to be the consideration of mutuality of
obligation. That is: is the worker required to work when offered it,
or may they turn down work and suffer no detriment? If the worker is
obliged to accept the offer of work then it is clear that a contract of
employment does indeed exist, albeit a zero-hours contract (see
below).

Zero Hours Contracts

A zero hours contract is a permanent (as opposed to casual)
contract with no defined hours, but instead a requirement made by
the employer that the employee will work hours as set by the
employer. These hours may alter from day to day, or week to week.
For example, a worker may work 35 hours one week, and none the
following week, whilst at the same time remaining an employee. As
can be seen, there exists a mutual obligation, and therefore a
permanent contract.
2

Understandably vilified when used by exploitative employers, zero

hours contracts can also be seen as a positive reaction to the
ambiguities about the position of a casual. A zero hours contract can
be seen as a positive move - acknowledging that a worker is an
employee with certain rights, and providing a place to specify those
rights, whilst at the same time acknowledging that the employer
cannot guarantee any particular amount of work.
A zero hours contract can resolve a potentially expensive conflict as
to whether, for example, a casual selected from a pool or bank is in
fact an employee with continuity of employment, because of the
custom and practice of reselecting from the pool.
Employees on a zero hours contract are entitled to rights, including
the right to paid leave. Entitlements to paid leave have to be
calculated according to a prescribed formula: when a worker takes a
weeks leave, that weeks pay should be worked out by taking the
average pay over the 12 weeks immediately preceding the week in
question but weeks where an employee has not worked at all (for
example has been off sick, or not offered any work) should not be
counted.
Other rights to pay when not at work including during maternity,
paternity and sick leave need to be calculated according to the
same formula.
An example of a basic zero hours contract of employment is
found on page 14.

Employment rights of your staff

Under the Employment Rights Act 1996 and subsequent legislation,
there are a number of rights that all employees, including those on
zero hours contracts can enjoy. If an employer fails in their
responsibility to fulfil their legal obligations, even if the failure was
through ignorance, they could face penalties.
For example an employee could complain to an employment tribunal
about the employers treatment of them. If they are successful in
proving the complaint, the tribunal will expect the employer to pay
compensation for unfair dismissal this can be a basic award of up to
12,000 and a compensatory award of up to 68,400 (as from 1
February 2011).
Full employment rights come into effect after one years continuous
service but many of these rights are effective from day one of
employment.

Your staff have the right:

To not be discriminated against
It is unlawful for employers to discriminate against someone on
the basis of their age, disability, gender reassignment, marriage
and civil partnership, pregnancy and maternity, race, religion or
belief, sex and sexual orientation.
To have a written statement of terms and conditions
This must include
o the name of the employer and employee
o the address of the employer
o the date when the employment began
o the job title, the rate of pay and any other benefits provided,
when the employee will be paid
o the hours of work (or the normal periods for working when
required)
o the place of work
o the holiday given.
In addition, it should include details (or refer to other documents
where these details are kept) of
o sick pay and sickness absence rules
o pension details or lack of a pension
o disciplinary and grievance procedures

o the notice to be given to end the employment.

For temporary or fixed-term employees the statement should also
state how long the employment is expected to last or give the date
employment is expected to end.
The statement must be given to the employee within 8 weeks of
the start of work.
Often the information is included within a written contract of
employment.
To receive at least the minimum wage
A minimum hourly rate is set for employees and others who are
paid for their work. For employees aged 21 and over the minimum
hourly rate is 6.08 (from 1 October 2011 normally increasing
each October). There is a slightly lower rate for younger workers.
Employers should also make deductions for national insurance,
PAYE (pay as you earn) income tax and where relevant for
repayments of student loans, and pass these on to HM Revenue
and Customs. Further details from HM Revenue and Customs new
employers helpline on 0845 60 70 143,
www.hmrc.gov.uk/newemployers or contact your local tax office.
If you do not want to operate the payroll yourself, you could ask a
bookkeeper or payroll bureau to do it for you. One example is
provided by Case Accountancy Services (more details through
CASH or Community Accountancy Self Help at http://cashonline.org.uk/content/3/76/).
CASH is a London based community accountancy project that
provides financial advice and training to small charities and
voluntary groups. It is part of the Community Accountancy
Network. Visitors to the website at www.communityaccounting.org
can find details of their nearest Community Accountancy Service
within the UK.
To receive an itemised pay statement
Payslips should show the gross amount of the wage, any
deductions made (such as national insurance and student loan
payments), the net amount of the wage, and any tax credits.
Both the employee and the employer must make contributions to
national insurance, if the salary is above a certain level the
earnings threshold.
Employees national insurance contributions are deducted from the
gross salary. Employers national insurance is calculated at 13.8%
of the salary above the earnings threshold (an increase of 1% from
April 2011). For 2011/12, the earnings secondary threshold is

136 per week or 7,072 per year. Employers NIC is only payable
on everything above this amount.
When preparing annual budgets, organisations should include the
employers national insurance contribution. Therefore, for an
accurate calculation you would need to do the following
calculation:
Employees weekly wage minus 136 (for 2011/12)
multiplied by 13.8%
multiplied by 52 weeks of the year
To receive equal pay
Both male and female employees must get equal pay for work of
equal value.
To work a limited number of hours
The employee should not work on average more than 48 hours a
week over 17 weeks. They should have a break of at least 20
minutes if their working day is more than 6 hours. They should
have a break of at least 11 hours between working days and have
at least 1 free day every week.
To have paid holidays
It has been common in the past for workers who work irregular
hours such those on zero hours contracts, to be paid rolled-up
holiday pay, in other words an element of holiday pay is included
in the hourly rate. However this meant that the workers did not
get the pay when they were actually on holiday, and some
employers were also not very transparent about how much of the
wage paid was basic pay and how much was holiday entitlement.
Rolled-up holiday pay is now considered unlawful for statutory
annual leave entitlement, which must be paid whilst the employee
is actually on annual leave.
Paid statutory leave entitlement cannot be replaced by a payment
in lieu except where employment is terminated.
All employees are entitled, as a statutory minimum, to 5.6
weeks paid annual leave per year (28 days for a full-time
employee). These weeks will include public holidays. A week is
generally understood to be the same length of time as the
employee works in a normal week. So the holiday entitlement for
part-time workers is based on the hours a week that they work,
and regardless of whether or not they normally work on public
holidays.
When staff under a zero hours contract have a varying
working week and you do not know the total hours to be worked
in the year, a weeks paid leave has to be based on an average. At
the point when holiday is to be taken, the total weekly pay
6

(excluding non-compulsory overtime) over the previous 12 weeks

is divided by 12. Any week where the worker was not paid (as
they did no work) is skipped over and replaced by the week
before, bringing the total to 12 worked/paid weeks. This
calculation provides the weeks holiday pay rate for the zero hours
workers leave at that particular time.
An employer can specify when holidays are to be taken and so
could clearly state that they should not be taken during busy
periods, or specify when it must be taken (during what would
otherwise be times when the worker is obliged to be available to
work).
Payment for holiday, whether requested by the employee or
specified by the employer will take place at the usual time (e.g.
end of week or end of month) as if the worker had been working.
To have time off for public duties
Employees can have reasonable time off for some public duties
such as attending meetings as a local authority councillor or
governor of a state school. This time off need not be paid.
To have time off to deal with an emergency involving a
dependant
Employees can have reasonable unpaid time off to deal with
unexpected or sudden emergencies such as an accident or illness,
relating to dependants.
A dependant is a spouse, partner, parent, child or person who lives
in the same household as the employee but who is not his or her
lodger, employee or boarder.
To maternity leave and pay
All pregnant employees, regardless of their length of service or
hours worked, have the right to 52 weeks maternity leave (26
weeks ordinary leave and 26 weeks additional leave).
A woman on ordinary maternity leave or additional maternity leave
is entitled to the benefit of her terms & conditions, except for
remuneration (sums payable as wages or salary), which would apply
if she were not absent during the 52 weeks (e.g. accrual of annual
leave).
If the employee returns to work after the 26 weeks of the ordinary
leave has ended, she is entitled to return to the same job on the
same terms and conditions as if she had not been absent. If
however a redundancy situation has arisen, she is entitled to be
offered a suitable alternative vacancy.
If the employee returns to work after the additional leave of a
further 26 weeks has ended, she is entitled to return to the same

job unless there is a reason why it is not reasonably practicable. If

this is the case, she should be offered a similar job on terms and
conditions which are not less favourable than her original job.
Pregnant employees may be entitled to up to 39 weeks Statutory
Maternity Pay (SMP). SMP is paid by the employer but most of the
money can be reclaimed from the government.
To qualify for SMP, the employee must have been employed by you
for a continuous period of at least 26 weeks into the qualifying
week (which is the 15th week before the week in which the baby is
due). This period must include at least one day in the qualifying
week. Part weeks count as full weeks.
Diagram showing the qualifying week
40 39 38 37 36 35 34 33 32 31 30 29 28 27 26 25 24 23 22 21 20 19 18 17 16 15 14 13 12 11 10 9 8 7 6 5 4 3 2 1
Weeks before baby is due
Week
baby is
due

Qualifying
week

[Diagram taken from the Department of Work and Pensions website www.dwp.gov.uk]

o For example, if a pregnant employee is due to have a

baby in the week of 6 August 2012, the qualifying week
would have been the week of 23 April.
To receive SMP from the employer they would need to
have been working from 31 October 2011 or earlier.
The employee must also earn on average at least the Lower
Earnings Limit for National Insurance Contributions (from
April 2011, 102 per week normally increased each April) during
the reference period up to the qualifying week. More details are
available in HM Revenue and Customs Helpbook for Statutory
Maternity Pay at www.hmrc.gov.uk/helpsheets/e15.pdf
If the employee does not qualify for SMP, she may be able to claim
maternity allowance instead.
More information on maternity rights is available from the
Government website: www.businesslink.gov.uk/maternity
For more detailed information about SMP, including help with
calculations and standard letters see www.hmrc.gov.uk/employers/
or call the HMRC Employers Helpline on 08457 143 143.
In addition, female employees have the right to paid time off for
antenatal care, and to not be dismissed or treated unfairly because
of their pregnancy.

 To paternity leave and pay

Fathers or partners of mothers (male or female) may be entitled to
either 1 week or 2 consecutive weeks paternity leave (not odd
days). To qualify, the employee must have been employed by you
for a continuous period of at least 26 weeks into the
qualifying week (which is the 15th week before the week in which
the baby is due).
To qualify for Statutory Paternity Pay (SPP) employees must earn
at least the Lower Earnings Limit for National Insurance
Contributions (from April 2011, 102 per week normally increasing
each April).
SPP is paid by the employer but most of the money can be
reclaimed from the government.
In addition where the mother has returned to work without using
her full maternity leave entitlement, the employee taking paternity
leave will be able to take additional paternity leave up to a
maximum of 26 weeks.
More information on paternity rights is available from the
Government website: www.businesslink.gov.uk/workandfamilies
For more detailed information about SPP, including help with
calculations and standard letters see www.hmrc.gov.uk/employers/
or call the HMRC Employers Helpline on 08457 143 143.
To adoption leave and pay
One of the parents of an adopted child may have the right to 52
weeks adoption leave (26 weeks ordinary adoption leave and 26
weeks additional adoption leave). The employee must also have
been employed by you for a continuous period of at least 26 weeks
ending with the week in which they are notified of having been
matched with the child.
The employee may also be entitled to up to 39 weeks Statutory
Adoption Pay (SAP). To qualify for SAP, the employee must earn at
least the Lower Earnings Limit for National Insurance Contributions
(from April 2011, 102 per week normally increasing each April).
SAP is paid by the employer but most of the money can be
reclaimed from the government.
More information on adoption rights is available from the
Government website at www.businesslink.gov.uk/workandfamilies
For more detailed information about SAP, including help with
calculations and standard letters see www.hmrc.gov.uk/employers/
or call the HMRC Employers Helpline on 08457 143 143.
The other parent may be entitled to paternity leave and pay.

 To unpaid parental leave

Employees who have worked for more than 1 year for your
organisation and are parents of a child who is under the age of 5
or is disabled and under the age of 18, have the right to take
unpaid leave to look after their child. They can take up to 13
weeks (or 18 weeks if their child is disabled), subject to a
maximum of 4 weeks in any one year.
To apply for flexible working
Employees with a child who is under the age of 17 or who is
disabled and under the age of 18, or who care for an adult have a
right to request flexible working arrangements (such as working
part time or partly from home). The employer must seriously
consider the request and if they refuse they must give written
reasons.
To receive statutory sick pay
Employees must be given details of their entitlement to paid time
off when they are ill. Statutory Sick Pay (SSP) is paid by the
employer but you may be able to recover some, or all, of the SSP
you have paid through the Percentage Threshold Scheme (PTS).
This scheme is designed to help employers who have a high
proportion of their workforce sick at any one time so it is not
restricted only to small businesses. Unless you qualify under the
PTS, you are not entitled to recover any of the SSP you pay to your
employees. See www.hmrc.gov.uk/employers/recover-ssp.htm for
more information.
SSP is not paid for the first 3 qualifying days, which are days that
the employee normally works but instead are off sick.
SSP entitlement depends on the employees Average Weekly
Earnings in a relevant period. To qualify for SSP, the employee
must earn at least the Lower Earnings Limit for National Insurance
Contributions (from April 2011, 102 per week normally increasing
each April). More details in the HM Revenue and Customs
Employer Helpbook for Statutory Paternity Pay
http://www.hmrc.gov.uk/helpsheets/e14.pdf .
For more detailed information about SSP, including help with
calculations see www.hmrc.gov.uk/employers/ or call the HMRC
Employers Helpline on 08457 143 143.
If the employee does not qualify for SPP, he or she may be able to
claim employment and support allowance instead.
To receive redundancy pay
If an employee has employed by an organisation for more than 2
years and is made redundant, they will be eligible for statutory

10

redundancy pay. The amount depends on the employees age,

length of service and weekly pay.
If earnings regularly change such as under a zero hours contract,
the average weekly earnings are calculated over the 12 complete
weeks before the calculation date. The calculation date is the date
when the employer gives the minimum notice to the employer.
Further information on handling redundancy from
www.businesslink.gov.uk/redundancy and
www.acas.org.uk/index.aspx?articleid=747.
To have a safe, healthy workplace
This includes employers making sure that articles and substances
are safely used, handled and stored and assessing the health and
safety risks to employees. If there are more than 5 workers, the
employer must provide a written health and safety policy.
To not be unfairly dismissed
Employers should not dismiss an employee for an unfair reason or
use an unfair procedure. It is important for employers to follow
the Acas Code of Practice on disciplinary and grievance procedures
(which can be downloaded from www.acas.org.uk/dgcode2009).
Employment tribunals will take it into account when making
decisions about unfair dismissals and have the discretion to adjust
awards by up to 25% for an unreasonable failure to comply with
the Code.
Fair reasons for dismissal are
o a reason related to the capability or qualifications of
the employee
o a reason related to the conduct of the employee
o the employee is made redundant
o the employee cannot continue to work in the position
because of a statutory ban e.g. if a driver loses their
licence
o some other substantial reason which the employer
must show is a good and fair reason and sufficiently
substantial e.g. ending the contract of a maternity cover
employee when the postholder on maternity leave returns
to work.

To be provided with written reasons for dismissal

11

All employees dismissed at any time whilst they are pregnant or

during maternity leave have the right to be given written reasons
for their dismissal.
All employees who have worked for your organisation for at least 1
year must be given written reasons for dismissal within 2 weeks of
a request.
To be given notice of termination of employment
Employees who have worked for an organisation for one calendar
month are entitled to at least one weeks notice. Statutory notice
period increases by one week with each completed year of work up
to a maximum of 12 weeks for 12 and more years service.
To be protected as a result of whistleblowing
Whistleblowing, or public interest disclosure, is when a worker
reports a concern about the improper actions or omissions of their
colleagues or their employer which may cause harm to others or to
the organisation. Employees are protected from being dismissed
or victimised as a result.
To be able to join a trade union
Employees have the right to belong to a trade union and to take
part in union activities outside working hours, and during working
hours if this is agreed by the employer.
To not be treated less favourably because of part-time or
fixed-term status
Part-time and fixed-term employees (including those on zero hours
contracts) have the same rights as comparable full-time employees
and should not be treated less favourably.
To be offered membership of a stakeholder pension (if there
are 5 or more employees)
Employees (including those on zero hours contracts) can choose
whether they wish to join the scheme, and employers can choose
whether to make contributions. For details on how to set up a
stakeholder pension see:
www.thepensionsregulator.gov.uk/employers.aspx
From October 2012 (phased in over a number of years with small
organisations not affected until 2014 to 2016), employers will have
to enrol their workers into a workplace pension scheme to which
they will have to contribute a minimum of 3 per cent of a workers
qualifying earnings by 2017. More details from
www.dwp.gov.uk/policy/pensions-reform and
www.thepensionsregulator.gov.uk/pensions-reform.aspx .

12

MODEL ZERO HOURS CONTRACT

OF EMPLOYMENT
This is a basic example of a zero hours contract of employment.
Many organisations will want to add extra terms and conditions that
are appropriate to their work and to their working relationship with
their staff. Contact your local CVS or PEACe for further advice if you
want to add any other terms and conditions.
What the law requires
There are some details that are essential under the law. These must
be provided in writing to your employee within 8 weeks of starting
work. These details are called the written statement of terms and
conditions. All the requirements of this written statement are
included in this model contract.
Good practice
There are also some details that are considered to be good practice
for employers. Employers may also decide to develop written policies
and procedures that will give further details about how the terms and
conditions operate. The policies and procedures will also clearly show
what you expect of your employees and their entitlements.
Additional useful clauses
Some clauses are included that have found to be useful for employers
in the working relationship, such as the confidentiality clause.
Additional useful clauses (such as use of email, internet and
telephones) can also be found in the more detailed model contract of
employment also available to download from PEACe at
www.lvsc.org.uk/what-peace-does/document-bank/contracts-forpaid-staff.
How to use this document
After each clause (or numbered statement) there are notes to help
you make decisions about what to include in the contract. These
guidance notes are clearly shown in boxes. They show where some
details must be included in order to follow the law, and where some
details are optional or good practice.
These boxes must be deleted from the final contract that you give to
your employee. They are only shown here to help the employer.
Changing the contract at a later date
Once both the employee and employer have agreed the contract of
employment, any changes to any of the details will need to be agreed
by the employee. That is why it is important to get the contract right
before you give it to the employee.
13

If you do need to vary the contract at a later date, you should discuss
the changes with the employee. If they agree to the changes, the
details should be written down. This could be in a letter, and both the
employer and employee should sign the letter to show their
agreement. Both the employer and the employee should then get a
copy of the letter.
For further guidance about contracts of employment including varying
contracts, please contact your local CVS or PEACe.

14

1) Name and address of employer:

You must fill in the name of your organisation and its full address.
This is essential for the written statement.
Name of employee:

You must fill in the full name of the employee.

This is essential for the written statement.
2) Date when employment began:

You must fill in the start date when the employee first began
working at your organisation.
This is essential for the written statement.
If you renew the contract or change the employees job title or any
other terms or there are gaps between periods when the employee
is actually required to do work, this start date will nevertheless
always remain the same.
This is known as the date when continuous employment began
and is important for accruing employee rights linked to length of
service.
Here, a global contract of employment continues to exist
between periods of work. The employer is under a continuing
obligation to provide work in the future, and the employee is under
an obligation to turn up for work when offered, although the
amount of work may vary from week to week. Therefore there is a
mutuality of obligation unlike the situation for casual workers
who can turn down work, and where the organisation does not
have to offer them any work.
3) You are employed as :
Your duties are as set out in your job description.
Your job description does not form part of your contract of
employment and may change from time to time.

15

You must fill in the name given to the job such as Co-ordinator,
Director, Officer, Administrator, Project Manager etc.
This is not a requirement of the written statement but it is usual to
include it in the contract.
The employer should give a copy of a job description to the
employee.
It is better not to include the job description in the contract as it
will be easier to update and amend the job description at a later
date. However you should still consult with the employee about
any changes to their job description, and preferably get their
agreement.
4) Your normal place of work is
You must fill in the address of the place of work. If the employee
is to be expected to work at more than one place, this should also
be indicated here.
This is essential for the written statement.
5) Your rate of pay will be per week/day/hour for the
hours you actually work.
You must fill in details of how much the employee will be paid. It
must be at least the national minimum wage.
Choose either the rate for the week, day or hour depending on
how long work periods are likely to last. Select only one from
week, day or hour and delete the other words.
This clause is essential for the written statement.
You will be paid on
You must fill in details of when you will pay staff e.g. You will be
paid on or near to the last working day of each month. It will be
paid directly into your bank account or You will be paid by
cheque at the end of each week you work.
This is essential for the written statement.
6) Your working hours will vary according to the workload but
are not expected to exceed hours per week.

16

Your normal hours of work will be between the hours of

Under the Working Time Regulations, employees must not work for
more than 48 hours per week unless they have signed an opt-out
agreement.
You should fill in the details of the normal periods for working e.g.
10am to 6pm, Monday to Friday.
You will be expected to be available for work within these
hours, although the organisation cannot guarantee the
number of hours of work that will be offered.
The employee can only refuse the work offered, if they have a
genuine reason such as sickness or agreed annual leave.
For each working day of six hours or more, you will be
entitled to take an unpaid break of
Under the Working Time Regulations a worker is entitled to an
uninterrupted break of at least 20 minutes when the working day
is more than six hours. This rest break need not be paid.
7) Your paid holiday entitlement is 5.6 weeks pro-rata (at a
proportional amount based on how much you work).
This entitlement is inclusive of all bank holiday
entitlements, for which no additional payment is therefore
due.
Zero hours employees are entitled to paid holiday and this holiday
entitlement is the statutory minimum for all employees.
However when zero hours employees work very irregular hours, a
weeks paid leave is based on the average over the previous 12 weeks
(excluding any weeks with no pay). See page 6 above.

More details on calculating holiday entitlement for atypical workers

from Businesslink at www.businesslink.gov.uk/bdotg/action/detail?
r.l1=1073858787&r.l3=1074414642&r.lc=en&type=RESOURCES&it
emId=1074414843&r.l2=1073858926&r.s=sc and Acas at
www.acas.org.uk/index.aspx?articleid=806

The dates of your leave must be agreed with your line

manager.
The holiday year runs from

17

You can decide when the holiday year starts for your calculations
of entitlement.
For example you may decide that it will be the same as your
financial year - e.g. from April 1st to March 31st so that all staff
members will have the same holiday year.
Or you may decide that it will start on the same date as when the
employment started. This will mean that each staff member will
have a different start date for their holiday year.
At the end of your employment you will be paid for any
accrued holiday (that you are entitled to at that point in the
holiday year), but have not taken.
If you have taken more holiday than you have accrued,
payment for the excess leave will be deducted from your
final pay.
When an employee leaves your organisation, you must pay them
for any statutory holiday that they are entitled to in that holiday
year but not taken. This should be included in their final salary or
wages payment.
It is important to include the clause about deducting money from
the final salary for excess holiday taken. Without this clause in the
contract, you will need the consent of the employee to make the
deduction. Without consent, it will be considered an unlawful
deduction.
8) You will be on probation for the first months of
your employment.
Your probationary period may be extended if more time is
needed to assess your suitability for the job.
You must fill in the number of months that the probationary period
will last. Normally this is 6 months, but for temporary staff
working one year or less, the probationary period could be 3
months.
This clause is not essential but a probationary period is useful to
the employer. But you must set clear standards of performance for
the employee to achieve, undertake regular reviews and give
suitable feedback and training. If this is done, and the
performance is unsatisfactory, dismissal can be considered. The
dismissal process should conform with the Acas Code of Practice
18

for Disciplinary and Grievance Procedures, which can be

downloaded from www.acas,org.uk/dgcode2009.
9) If you are not able to come into work because of sickness,
you must inform your line manager by a.m on your
first day of absence, giving the reason for your absence and
the likely date of your return to work.
If your sickness absence lasts for more than 7 calendar days,
you must provide a medical certificate signed by your doctor.
You must fill in the time by which the employee should inform their
line manager of their absence.
This clause is essential for the written statement.
You may decide to develop more detailed sickness absence rules
and procedures covering areas such as frequent short-term
sickness and long-term sickness. This can be included in a
separate sickness absence policy.
You may be entitled to receive Statutory Sick Pay (SSP),
according to the Statutory Sick Pay rules that apply at the
time.
This clause is essential for the written statement.
The basic details of Statutory Sick Pay is:
- The current rate of statutory sick pay is 81.60 per week (from 6
April 2011, normally increasing each April).
- No SSP is payable to employees whose average weekly earnings
is less than 102 for the year 2011/12.
- The employee must be sick for at least 4 complete days (they do
not have to be working days)
- there is no SSP payment for the first 3 days off sick from work
(the qualifying days - usually the normal working days)
Small organisations with not many employees may be able to
recover statutory sick pay from the government. Further
information from
http://www.hmrc.gov.uk/employers/employee_sick.htm
Some employers provide additional sick pay to the statutory
entitlement if they can afford it.

19

10) If at any time you owe the organisation money, it may be

deducted from your salary. This includes but is not limited
to overpayment of wages, a days or part days pay for each
day or part day of unauthorised absence, damage caused by
negligence or carelessness and any loan made by the
organisation to you.
This clause is not essential and can be deleted but it is often useful
to include a clause about deductions from the salary. Your
organisation will not be able to make deductions without this
clause, even if the money is owed by the employee.
11) You will be entitled to receive maternity, paternity,
adoption and parental leave and have the right to request
flexible working in accordance with statutory entitlements.
You are entitled to take unpaid time off to deal with an
emergency involving a dependent.
You may be entitled to receive Statutory Maternity, Paternity
or Adoption Pay (SMP, SPP or SAP) at whatever rate is due at
the time.
It is not essential to include this clause.
If it is not included, it is assumed that you will provide only the
statutory entitlement. Some employers provide additional
maternity, paternity or adoption pay if they can afford it.
- The current rate of statutory maternity, paternity and adoption
pay is 128.73 per week (from April 2011, normally increasing
each April).
12) The disciplinary procedure is attached but does not form
part of this contract and may be changed from time to time.
The full disciplinary procedure does not apply to employees
during their probationary period.
It is essential to have a written disciplinary procedure that includes
an appeals procedure. This should be available to the employee
within 8 weeks of their starting work. It should follow the
requirements of the Acas Code of Practice for Disciplinary and
Grievance Procedures, which can be downloaded from
www.acas,org.uk/dgcode2009. The accompanying Acas Guide
(which can also be downloaded from the above site) includes a
sample disciplinary procedure for small organisations.
20

We would recommend that the procedure is attached to the

contract but is not part of the contract. This means that any
future changes can be made more easily.
It is useful to not have the full disciplinary procedure apply to
probationary employees who should receive regular reviews during
the probationary period. However if the decision is to dismiss, the
requirements of the Acas Code of Practice for Disciplinary and
Grievance Procedures should be followed.
13) The grievance procedure is attached but does not form
part of this contract and may be changed from time to time.
The full grievance procedure does not apply to employees
during their probationary period.
It is essential to have a written grievance procedure. This should
be available to the employee within 8 weeks of their starting work.
It should follow the requirements of the Acas Code of Practice for
Disciplinary and Grievance Procedures which can be downloaded
from www.acas.org.uk/dgcode2009. The accompanying Acas Guide
(which can be downloaded from the above site) includes a sample
grievance procedure for small organisations.
We would recommend that the procedure is attached to the
contract but is not part of the contract. This means that any
future changes can be made more easily.
It is useful to not have the full grievance procedure apply to
probationary employees who should receive regular reviews and
opportunities to request support or raise issues during the
probationary period. However if they want to raise a formal
grievance, the requirements of the Acas Code of Practice for
Disciplinary and Grievance Procedures should be followed.
14)

The organisation will give you the following notice:

During the probationary period:
After the probationary period: or the statutory
minimum, whichever is higher.

This clause is essential for the written statement.

You must fill in the name of the organisation and the length of the
notice periods during the probationary period and after the
probationary period.
It is common to have a shorter notice period during the
probationary period such as 1 week, which is also the statutory

21

minimum for employees who have worked for less than two
complete years.
Different employers may give different amounts of notice period
from 1 month to 3 months. But they must also fulfil the statutory
requirements.
For each complete year worked, the statutory notice period that
employers must give increases by one week up to a maximum of
12 weeks. For example, an employee who has worked for 3 full
years would be entitled to at least 3 weeks notice under the law.
An employee who has worked for 13 years would be entitled to at
least 12 weeks notice under the law.
You are required to give the following notice if you want to
leave:
During the probationary period:
After the probationary period:
This clause is essential for the written statement if you intend to
have a shorter notice period during the probationary period.
You must fill in the length of the notice periods during the
probationary period and after the probationary period. These
would normally be the same as the periods given by the employer.
15) There are no collective agreements (between the
employer and a trade union) in force that affect your
employment.
Collective agreements are agreements made between an employer
and a trade union affecting the terms and conditions of all the
staff. Small organisations are unlikely to have collective
agreements.
If there are any collective agreements, it is essential that details
are included for the written statement.
All employees have a right to join or not join a trade union under
the law, but organisations do not need to have collective
agreements with trade unions.
16) The organisation does/does not offer a stakeholder
pension scheme.
You must fill in the name of your organisation and delete either
does or does not as is appropriate.

22

This clause is essential for the written statement.

Employers with five or more employees must provide access to a
stakeholder pension scheme if no other type of pension is offered.
More information is available from
www.thepensionsregulator.gov.uk/employers.aspx
Employees can choose whether they wish to join the scheme, and
employers can choose whether to make contributions.
If you do provide a pension scheme, you must also state if a
contracting out certificate is in force, which means that the
organisation has opted out of the government scheme.
Some organisations also contribute an amount equivalent to a
percentage of the employees salary to the pension.
From October 2012 (and phased in over a number of years with
small organisations not affected until 2014 to 2016), employers
will have to enrol their workers into a workplace pension scheme
to which they will have to contribute a minimum of 3 per cent of a
workers qualifying earnings by 2017. More details from
www.dwp.gov.uk/policy/pensions-reform and
www.thepensionsregulator.gov.uk/pensions-reform.aspx .
17)

You may as an employee have access to or be given

information that considers confidential. You shall not
at any time during or after the end of your employment
disclose to any person, or make use of, such confidential
information.
This clause is not essential but is useful to include in all
contracts of employment, reminding employees of the
confidential nature of information used.
You must fill in the name of your organisation.

18)

For the purposes of the Data Protection Act 1998 you

give your consent to the holding and processing of
personal data provided by you to for all purposes
relating to the performance of your employment
including, but not limited to:

Administering and maintaining HR records;

Paying and reviewing salary and other remuneration

and benefits;

Providing and administering benefits (including if

relevant, pension, or insurance);

Undertaking performance and fitness, appraisals and

reviews;
23

Maintaining sickness and other absence records;

Providing references and information to future

employers, and if necessary, governmental and quasigovernmental bodies for social security and other
purposes, HM Revenue and Customs and the
Contributions Agency;

Providing information to future partner organisation

or organisations with whom we may merge or transfer
an undertaking to;

Transferring information concerning you to a country

or territory outside the EEA.

From time to time it may be necessary to process sensitive

personal data for example, information relating to an
individuals ethnic origin for equal opportunity monitoring.
By signing this contract you agree that may hold and
process sensitive personal data about you as the needs of
the organisation require.
You must fill in the name of your organisation in the two blank
spaces above.
This is a standard clause about data protection and the use of
personal data. It allows the organisation to keep a personnel file
with contact details etc. about the employee. Although including a
data protection clause is not essential, it is advisable as it ensures
that employees are aware of and consent to use of their personal
data.
However you are expected to keep employees informed of any
additional processing of their data, particularly sensitive personal
data (such as racial or ethnic origin) normally requiring explicit
consent for a clearly defined purpose.
The list above is not complete and you may want to consider other
purposes for processing of data.

Variation Clause
You may want to consider including a variation clause to provide the
flexibility to make minor changes. However as a contract is an
agreement between two parties it should only be varied by mutual
consent. Even if you choose to include such a clause you should be
very cautious about making any changes without the employees

24

agreement. Any change made unilaterally, i.e. without the

agreement of the employee, may expose an employer to litigation
and financial risk.
An example of such a clause is:
19)

reserves the right to make reasonable changes to any

of your terms and conditions of employment. You will be
notified in writing of minor changes of detail, and any
such change takes effect from the date of the notice or
such other date as specified in the notice. Other changes
will be made only after consultation, and with at least one
months written notice.

I have read, understood and accept the above terms and

conditions of employment.

Date
Signature of employee

Date
Signature of Chair
Even if the contract is not signed it is still valid.
If the employee starts work and accepts the pay, the contract
between the employer and employee exists. But it is good practice
to ensure that it has been received, understood and signed.
The employer and the employee should each keep copies of the
contract.

25

Sources of further information

www.acas.org.uk
The Advisory, Conciliation and Arbitration Service website which
includes up-to-date information on all aspects of employment
legislation.
www.hmrc.gov.uk/newemployers
HM Revenue and Customs website with information for new
employers on the PAYE system.
www.hmrc.gov.uk/employers
HM Revenue and Customs website including information on
statutory payments (maternity, paternity, adoption and sick
pay).
www.cash-online.org.uk
CASH (Community Accountancy Self Help) website with
financial advice for small charities and voluntary groups.
www.communityaccounting.org
Community Accounting Network website with details of the
nearest service in the UK.
www.businesslink.gov.uk
Business Link website with practical advice for businesses
including information on employing people.
www.dwp.gov.uk
The Department of Work and Pensions website.
www.hse.gov.uk
The Health and Safety Executive website.

LVSC (PEACe), November 2011

LVSCs Personnel, Employment Advice and Conciliation Service
The material in this document a do not give a full statement of the
law, nor does it reflect changes after November 2011. It is intended
for guidance only and is not a substitute for professional advice. No
responsibility for loss occasioned as a result of any person acting or
refraining from acting on the basis of this material can be accepted by
the author or by LVSC or by Russell-Cooke LLP.

26