Even if you don’t have a formal Employment Agreement with a worker, there is likely to be an ‘implied contract’ or verbal agreement between you: you offer them a job, they agree to work for you, they expect to get paid, you pay them.
If the agreement is verbal, the employee often still has rights under local employment law. These rights include:
minimum notice periods
minimum holiday entitlement
limits on the hours they can work
the right to statutory sick pay
the right to be protected from discrimination on the basis of gender, gender reassignment, marital status, pregnancy and maternity, age, race, religion, disability and sexual orientation
This protection starts from when they’re recruited, even if there’s no formal contract in place.
If there’s any dispute, verbal agreements are tricky. With no written contract, a court would have limited evidence from both sides so deciding who is telling the truth about the agreed employment terms will be difficult.
It’s always better to have your employee sign to say they agree to the terms in a written Employment Agreement. That way, your company will be more able to resolve disputes quickly and easily.