Managing employment contracts as an SME

Managing employment contracts in a small to medium-sized enterprise (SME) can be a challenging yet essential part of effectively running a business. While larger companies tend to have access to in-house HR and legal teams, smaller businesses often adopt a more casual approach, which can lead to potential legal risks.

Taking a proactive approach to employment contracts can help businesses stay legally compliant while creating clear employee expectations.

The essentials of an effective employment contract

A well-structured employment contract is a fundamental part of managing staff effectively.
Here are our top things to include in your employment contracts.

• Clear definitions of job roles and responsibilities can help to avoid any misunderstandings.
• Ensure transparency in pay structures, bonuses, pensions, and other employee benefits.
• Set out expectations around overtime, flexible working, holidays, and sick pay.
• Include information on any probation periods, clearly setting timescales.
• Ensure clear information on the termination of the contract for both sides, including notice periods.
• Inclusion of any restrictive covenants to protect sensitive business information and relationships, such as working for a competitor or client interactions following an employee’s termination.

The benefits of professional legal guidance

An employment contract must be tailored to a company’s specific business needs and compliant with employment law.
Engaging professional legal advice can provide many key benefits. An expert solicitor can ensure that contracts are legally compliant and up to date, reducing the risk of unintended legal exposure. They can also help to stay informed about employment law changes, helping to prevent disputes before they arise.

By regularly reviewing employment contracts and staying informed about legal developments, SMEs can protect their business, strengthen employer-employee relationships, and build a solid foundation for long-term growth.

If your company needs guidance on employment contracts, our team specifically supports SMEs with practical and legal advice. Feel free to contact us to discuss how we can help you.