A Contract of employment is an agreement between an employer and employee setting out the main terms of employment. These will set out the rights and duties of both the employer and employee. An employer is legally obliged to send an employee a written statement of employment within two months of starting work. Creating a contract of employment will help to avoid legal disputes.
If hiring a mid-level or junior employee, a standard Employment contract will be most suitable. There are certain circumstances where a more specific document may be appropriate. Use the most suitable document for your new hire.
If hiring a freelancer, contractor or consultant a Consultancy agreement is likely to be the best document to use. These types of hires are generally 'self-employed' so require special wording to align with this in their agreements. For more information, read Consultants, workers and employees.
Zero hours contracts can be used to hire workers on an ad-hoc basis. The types of employment contracts are a casual agreement between an individual and a business where the worker works as and when the business needs the labour. The business does not guarantee any set hours and the worker is not obliged to work any hours offered to them. Zero hours workers are given fewer employment rights than employees but are still entitled to some basic rights such as minimum wage and annual leave. For further information, read Zero hours contracts.
A senior employee or executive director may require a contract of employment with more detail and security for the employer as they will likely have more responsibility than your average employee and will have access to more confidential information. A Senior employment contract or director's service contract may be useful in these circumstances.
Non-executive directors are appointed using a Letter of appointment (LOA), which sets out the terms of the appointment. Non-executive directors do not perform the day-to-day functions of running the business and normally work only part-time.