The employment contract

Implied terms of an employment contract

As well as the terms you actually agree with your employee, an employment contract can include implied terms.

Implied terms include:

• the duty of the employer to provide a secure, safe and healthy environment for employees
• the employee's duty of honesty and loyal service
• an implied duty of mutual trust and confidence between you and your employees that neither side will act in such a way as to breach that trust
• a term too obvious to need stating, eg that your employee will not steal from you
• any terms that are necessary to make the contract workable, eg that someone employed as a driver will have a valid driving licence

Some terms and conditions, eg entitlement to enhanced redundancy pay, may become part of the contract through established custom and practice.

The law also imposes some terms automatically, such as the right to paid holidays and the right to receive the National Minimum Wage.

Subjects covered in this guide

• Introduction
• What a contract of employment is
• How to change an existing contract
• Put together an employee's written statement
• Put together an employee's written statement in separate parts
• Implied terms of an employment contract
• When you send a new employee abroad

 Print This Page

Source - Business Link; Crown Copyright.