What people mean by this term varies enormously.
The first thing to bear in mind is that it is possible for there to be an entirely unwritten, oral, contract of employment. So, when someone says “I have been employed by Snooks & Co for fifteen years but have not got a contract” what is actually meant is that he has not got anything in writing. If the relationship of employer and employee actually exists then there is a contract. Some of it may be orally agreed and some of it may have to be implied from the way that employer and employee have developed the relationship. Working out what its terms are may sometimes be difficult - and uncertain for both sides if it comes to a dispute.
It is therefore desirable for both employer and employee to have a written contract. Very often a letter of appointment may be a substantial starting point but it is seldom that such a thing covers all those “But what if…?” questions which are often the ones that lead to discord.
Many employers issue “Particulars of Employment” which are then called contracts. Usually these Particulars are only part of, often a big part, of the contract. The law has required that all employees of eight or more weeks’ employment must be issued with these particulars which cover a lot of the basic terms that we all associate with an employment.
However, these “Particulars” still do not always cover all the matters that affect an employment – for example, from the employee’s perspective it may be important that a mobile phone is provided and that private use is allowed. The law does not require that this is one of the things covered by Particulars. For an employer it may be important to provide that after someone leaves he cannot set up in competition.
There are many of these issues that can be covered in a proper written contract. This provides certainty and where there is certainty there is less scope for argument and, possibly, court. Employers should try to ensure that each employee has a written contract. Employees are generally better off having everything in writing and should therefore press for a written contract, if possible.
