Are you aware that a maximum award in an unfair dismissal claim was increased from £12,000 to £50,000 in October 1999? Although most previous claims have been far less than the £12,000 maximum it does open the door on any claim in respect of Share Schemes and larger claims brought by well paid staff.

The number of applications being made to the Employment Tribunals have also increased significantly even though the successful party is not able to recoup their costs unless the other side has acted unreasonably.

Companies should be aware that not only is defending an Employment Tribunal Claim expensive, it can be extremely time consuming and tie up key personnel for days at a time. A commercial decision will inevitably have to be taken whether or not the Company feels justified in defending the matter.

If employers do find themselves unfortunately drawn into a Tribunal Hearing, the first question that will be asked is "where is the Contract of Employment?" Whilst it is not obligatory to provide full contracts to employees, there is a requirement under the Employment Rights Act 1996 ("ERA") to provide basic terms and conditions. Any employer who has not provided at least the basic terms will start at the Tribunal on the back foot as it shows poor personnel practice.

The minimum requirements
So what should Employment Contracts contain? At the very minimum the employer must within two months of the commencement of employment provide a written statement of the particulars of employment including the following provisions:-

1. Identify the parties.

2. Date the employment, or continuous employment began (taking into account any relevant Employment with a previous employer) i.e. transfer of undertakings.

3. Scale or the rate of remuneration and the intervals of pay.

4. Hours of work.

5. Any terms relating to holidays and holiday pay, sickness, sick pay, pensions and pension schemes.

6. The length of notice required to end the Contract.

7. In the case of non permanent employment, i.e. fixed Contracts, the period for which they are expected to continue or the date it is to end.

8. Job Title.

9. Place or places of work.

10. Particulars of any collective agreements which directly affect the Terms and Conditions of Employment i.e. in respect of union representation.

11. Where employees are required to work outside the UK for a period of more than one month, the period of such work, the currency in which the payment is made, the benefits provided and the terms relating to the return to the UK.

12. Disciplinary Rules, unless the number of employees including those working for an Associate Company is less than 20.

13. Grievance procedure.

14. Whether there is a contracting- out Certificate in force i.e. under the Social Security Pensions Act 1975.

Job title
All that is required is the title - but by providing a full job description the employee will be made fully aware of the nature of the job and what is expected.

Restrictive covenants
An Employment Contract can contain restrictive covenants to protect the employer. However, these must be reasonable both in terms of duration and geographical area, and there should be no ambiguity which would enable an employee to successfully defeat such a provision.

Excessive restrictive covenants may be struck out by a Court leaving the employer with no protection. Working for competitors

Employers may want to restrict key employees from:

working for a competitor,

within a specified area or for a specific length of time, and

be able to place them on "garden leave" during the notice period.

Poaching staff and customers
Provide a clause to prevent employees from leaving and poaching staff and customers with whom they personally dealt with.

Protecting Intellectual Property Rights
Particularly relevant for employees working in areas such as design and research. The Company can claim ownership of any designs, research etc and within the Intellectual Property Clause provide for the Company to have Power of Attorney giving them authority to act on behalf of the employee.

Handy Hint
"consider restrictive covenants for employees in sensitive roles."

Summary
Employment Law is a minefield. Employers should work on the premise that they may at some time in the future be taken before a Tribunal, and have procedures in place, i.e. good Contracts of Employment, clear disciplinary and grievance procedures which they can then place reliance on at any hearing.