5 Common Mistakes Employers Make in Employee Contracts – And How Hopkins Solicitors Can Help

An employment contract is more than just a formality, it’s a legally binding agreement that protects both employer and employee. However, many businesses unknowingly make mistakes when drafting these contracts, which can lead to disputes, financial penalties, or even Employment Tribunal claims.

At Hopkins Solicitors, we help employers get it right from the start.

Here are 5 of the most common mistakes employers make in employment contracts:

Using Generic or Outdated Templates

Many employers rely on “one size fits all” templates found online or reuse old contracts without updating them for current legislation or the employee’s role. This can lead to missing key terms or including clauses that are no longer legally enforceable. Your business needs and employment laws can change frequently. As a result, what may have been suitable two years ago may not be now, especially with the evolving employment legislation and new legislation proposals.

As part of our HR retainer service, we offer a contract review service to ensure your documents remain compliant, relevant, and aligned with your business needs. We also offer this service on an hourly rate basis.

Failing to Include Statutory Minimums

Some contracts attempt to exclude key rights such as minimum notice periods, statutory sick pay, or holiday entitlements. This can lead to parts of the contract failing to comply with statutory requirements and leaves employers open to potential disputes and Employment Tribunal claims.

An employer cannot require an employee to sign away their key statutory rights in a contract of employment as they are guaranteed and protected by legislation. For example, the statutory entitlement to minimum wage is protected and enforceable even if the employer omits it from the employment contract.

As well as potentially giving rise to various claims, if an employer fails to include or comply with the statutory requirements, it could damage the relationship between the employer and employee as employees often feel the employer is trying to ‘cheat the system’ or get away with not complying with their duties.

We ensure your contracts meet the statutory requirements, as a minimum, to keep your business compliant and competitive.

Unclear Job Roles and Responsibilities

Vague or incomplete job descriptions can lead to misunderstandings and disputes over duties, performance expectations, or grounds for dismissal. This can lead to difficult situations especially when attempting to raise concerns with an employee for poor performance. An employer will struggle to fairly complete the disciplinary procedure on this basis if the employee was not fully aware of their duties and responsibilities. Unclear job descriptions can also lead to tension in the workplace if the employees are not clear on who should complete which task, for example, and may lead to feelings of resentment amongst colleagues.

We will work with you to understand your business and define roles clearly, reducing the risk of ambiguity and creating a stronger foundation for managing employee performance.

Neglecting Restrictive Covenants

Restrictive covenants are a complex area and need proper consideration before including them within contracts. Used properly, restrictive covenants help protect your business from unfair competition, including employees taking sensitive information or clients with them if they leave. Many contracts include these clauses as standard, but few are written in a way that makes them legally enforceable.

Our team will take the time to understand your business and what is important to you. We will draft specific, tailored, restrictive covenants that provide protection to your business interests to give you the best chance of enforcing them, should it be necessary. 

Failing to include probation periods

Probationary periods are an essential clause in any employment contract as it offers employers a level of protection to assess the employee performance in the early stages of the employment relationship. Many employers often overlook the importance of a clear probation period and the benefit of this. A clearly defined probation period clause provides employers with an easier route to follow to terminate the employment relationship at an early stage if things are not quite right.

We will assist you to understand the nature of the role and the suitable probationary period and ensure this is reflected within the employment contract.

Protect your business with expert legal support

At Hopkins Solicitors, we specialise in supporting businesses of all sizes with their employment law needs. Whether you’re drafting new contracts, updating existing ones, or facing a potential dispute, our experienced employment law team is here to help.