HR Outsourcing for SMEs

Whilst it is not law that employees have a formal contract, it is the law for employers to provide new employees with a document detailing their main conditions of employment when they start work. Our recommendation is this is encompassed in an employment contract so everyone is clear on what their duties and obligations are. This will avoid any issues should the relationship breakdown.

The UK government states that a contract of employment does not need to be written down. They can just as easily be verbally agreed. However, this can lead to grey areas and would not be advisable from a legal perspective. You may come unstuck very quickly if there are any areas of ambiguity. All small business HR services providers will recommend providing an employment contract.

What is the difference between an offer letter and a new starter letter?

An offer letter is provided to a potential employee when they are offered a new role. It should contain at least:

• Start date
• Job title
• Salary

It is often provided as an opportunity for the candidate to sign as acceptance of the position but it is not contractual. That's what the employment contract is for.

A new starter letter is also not a legal requirement, but, as HR outsourcing experts, we believe all new employees should be welcomed in advance of their first day. We recommend, including with the letter, a copy of your staff handbook and include the following information (where available):

• Start date
• Start time
• Where to meet and with whom on their first day
• Hours of work (including designated breaks)
• Other useful information unique to your business including uniform, parking or location details, door codes, refreshment provision.

The Farringford Legal new starter letter provides a warm and informal welcome for all new starters.

A company handbook is not a legal requirement but is highly recommended by anyone delivering HR solutions. A company handbook provides your employees with a guide/overview of all your company policies. 

It should provide information and guidance on:

• Statutory leave (parental, maternity, sick etc) 
• Holidays
• Disciplinary and grievance procedures
• Diversity and equal opportunities
• Anti-corruption, bribery and tax evasion

Policies and issues raised in a staff handbook be regularly revisited and revised where necessary. It should also provide a regular strand of training for managers.

Company handbooks should be provided to employees on or before their start date and copies should be readily available online and in the workplace.