The employment contract

The employment contract is fundamental to every employment relationship because it sets out the terms and conditions under which work is to be done and paid for. Employees should know what those terms are and how to enforce them. Once an employer has offered a job and the employee has accepted it, there will be a legal contract in place, even if there is nothing in writing. If the employer subsequently withdraws the offer, the employee may be able to claim damages for breach of contract (Sarker v South Tees Acute Hospitals [1997] IRLR 328).

In most cases, damages are limited to the length of notice required to terminate the contract legally. However, if the contract is for a fixed period of time and there is nothing allowing for it to be ended earlier, damages could potentially cover the whole period (Gill and others v Cape Contracts [1985] IRLR 499).

Although a verbal offer and acceptance can be binding, proving it may be difficult. In Wright v Canterbury Christ Church University College [2005] EAT/0428/04/0604, the EAT held that an offer is binding if a “reasonable person” would infer from the words that the employer intended to be bound by the offer once it was accepted, whether or not this was actually the employer’s intention.

To enforce any contract, you need to know who the employer is. This should be stated in your written statement of employment particulars (see below).

The legal identity of an employer cannot be changed without the employee’s consent (Gabriel v Peninsula Business Services [2012] UKEAT/0190/11/2302). Special rules apply to a TUPE transfer (see Chapter 12).