International Workers’ Day (1 May) is a great reminder of how much the world of work keeps changing. But when was the last time you actually looked at your employee contracts?
If it’s been a few years (or longer!), it’s time to dust them off, because old contracts could leave you wide open to legal trouble.
UK employment laws are changing fast, and what used to be a good, solid contract a few years ago might not meet today’s rules. Worse still, if your contracts aren’t up to date, it could make it harder to defend your business at an employment tribunal if a problem ever crops up.
Here are some key areas where we’re seeing lots of businesses fall behind:
Minimum Wage Updates
The National Minimum Wage and National Living Wage rates changed last April.
If your contracts still list old wage figures, that’s a red flag. It’s safer to word pay clauses in a way that keeps you compliant without needing constant rewriting, or better yet, include a phrase like “no less than the prevailing National Minimum Wage.”
Flexible Working
Employees now have stronger rights to ask for flexible working and from day one of employment, not after 26 weeks anymore.
If your contracts don’t reflect that, or if they limit flexibility too much, you could be breaching new laws without realising it.
You should also ensure your contracts include up-to-date information about statutory entitlements, such as the various types of family leave employees may be eligible for.
Pay Transparency
There’s a growing push in the UK towards being more open about how pay is decided.
While not every business needs a full pay policy yet, contracts that are vague or unclear about pay terms can raise suspicions and lead to disputes you could easily avoid.
Remote and Hybrid Working Arrangements
Since the pandemic, many businesses have embraced remote or hybrid working – but not all have updated their employment contracts to reflect this shift. If your employees work from home, even part of the time, their contract should outline where they’re expected to work, who provides equipment, how performance will be managed remotely, and any expectations around availability or attending the office. Without this clarity, you could be left exposed if disputes arise or if you want to change the arrangement later.
While it may seem like common sense, it's something many businesses understandably overlook. To gently remind you,
Old contracts = Increased risk.
Updated contracts = Better protection and peace of mind.
Don’t Wait for a Tribunal to Find Out
An employment tribunal claim can cost your business time, money, and stress, even if you win. A simple review and update now could save you a big headache later.
Celebrate this International Workers’ Day by making sure your people (and your business) are properly covered.
If you need help in auditing your employment contracts, we’ll help you spot the gaps, update your documents, and keep your business protected. Reach out to us at Dakota Blue Consulting.