Always ensure you have the right set of written terms and conditions for every employee.

Recently Redwing was contacted by a client who wanted to end a fixed term contract (FTC) of an employee earlier than the end date which was 8 weeks hence.

We had not drafted the FTC for the client who had decided to amend some written terms and conditions that they had on record. We asked to see the FTC as part of the conversation to make sure that all was in order, which is something we routinely do.

When we read them, there was a problem. The contract wording was okay but there was no clause in the contract to allow either party to serve notice on the other to end the contract earlier than the end date.

As a result of this error, the FTC could not be ended earlier than the end date  without having to pay the balance of the contract to the employee, 8 weeks’ pay.

The employer had used some terms of employment designed for a permanent member of staff where there would not be a specific “break clause” and as a result had created a FTC that if ended earlier than the end date meant the employee would be able to claim breach of contract and claim pay for the period of time between the date it was ended and the official end date.

The omission of this sentence “notwithstanding that this employment is fixed term, either party may terminate this employment” upon giving the following notice …

This meant that that the employer would continue with the person’s employment to the end date rather than end it early and have to pay the balance. The risk would be that if the employer didn’t they would be sued for breach of contract and receive compensation.

Remember the adage of “the right tool for the right job”, well in employment law, one always needs the right set of terms for the right employee.

There is no leeway given to another employer who uses the wrong contract and creates an obligation they did not intend to. You will be held to what’s written rather than what was intended.

If you’d like further support with ensuring accurate terms and conditions within your contracts, check out our contract templates in our Shop or speak to one of the team.