3. THE EMPLOYMENT CONTRACT

A contract of employment is, at its simplest, an agreement by a worker to carry out a particular type of work for an employer in return for pay and other benefits. The contract sets out the terms that govern the employment relationship. These terms can be either expressly agreed — whether verbally or in writing — or implied terms through conduct or custom and practice.

One term implied into every contract of employment is that neither party shall act in a way that is likely to destroy the trust and confidence between employer and employee.

If an employer fundamentally breaches a term of the contract, whether express or implied, the employee is entitled to resign and claim they have been constructively dismissed (although a constructive dismissal is not necessarily unfair).

For further information, see Chapter 3 of LRD’s Law at work www.lrdpublications.org.uk/publications.php?pub=BK&iss=1621

and Contracts of employment — resisting changes www.lrdpublications.org.uk/publications.php?pub=BK&iss=1475