Road Legal

Employees and employers have a variety of rights and obligations towards each other. These rights and obligations are either imposed by law (statutory) or agreed between the parties (contractual).

In simple terms, an employee agrees to work for an employer in return for wages. A contract is made when the offer of employment is accepted.

A contract of employment (also known as a contract of service) contains the terms governing the relationship between employer and employee. It  is usually in writing but can be oral. Although the contact itself need not be in writing, employees who have been employed for one month or more are entitled to a written statement of particulars of employment within two months of starting employment.

The following details must be included in the written statement:

• the employer's name
• the employee's name
• the job title or a brief job description
• the date employment began, the place of work and the address of the employer
• the amount of pay and the interval between payments
• hours of work
• holiday pay entitlement
• sick pay arrangements
• pension arrangements
• notice periods
• where the employment is not permanent, the period it is expected to continue
• where the employment is for a fixed term, the date when it is to end
• grievance and appeal arrangements
• disciplinary rules and any disciplinary or dismissal procedures (as a minimum these  should comply with the statutory procedures)
• any collective agreements which directly affect the terms and conditions
• where the person is required to work outside the UK for more than one month: the period he/she is to do so; the currency in which salary will be paid; any additional remuneration payable by reason of working outside the UK; and any terms and conditions relating to his/her return to the UK.

An employment contract can only be lawfully altered with the consent of both parties.

The courts have established that all employment contracts have the following terms in them, whether explicitly agreed or implied:

• to maintain trust and confidence through co-operation
• to act in good faith towards each other
• to take reasonable care to ensure safety and health in the workplace.

Notice period

A contract of employment should state the notice period that either party must give to the other to terminate the contact. Employees have a statutory right to receive a minimum period of notice from employers once they have been employed for one month. These notice periods are:

• One week's notice for those with between one month's and two years' service.
• Thereafter, an additional week's notice for each continuous year of service, up to a maximum of 12 weeks' notice for 12 complete years' service.

In certain circumstances, both parties can waive their right to receive notice. Contracts can also require either party to give longer periods of notice.

Wages

The national minimum wage applies to all workers over compulsory school leaving age. National minimum wage rates vary according to the age of the worker and whether or not he/she is in training. The current rates are:

• Adults over 22: £5.35 per hour
• 18-21 year-olds: £4.45 per hour
• 16-17 year-olds: £3.30 per hour

Hours

The number of hours an employee or worker may work in a week and the rest breaks they are entitled to are set out in the Working Time Regulations 1998.

There are further specific regulations that apply to mobile workers working in the road transport industry. All mobile workers (except the self-employed) have their hours of work regulated by the Road Transport (Working Time) Regulations.

Workers may not work, on average, for more than 48 hours per week (usually across a reference period of 17 weeks), 60 hours in any week or 10 hours in any 24-hour period if working overnight.

Mobile workers are not permitted to opt out of the average weekly working limit. However, they may agree by collective or workforce agreement to extend the reference period from 17 to 26 weeks.

Under the regulations, workers are entitled to a statutory minimum of four weeks' paid holiday entitlement a year. Public holidays form part of the four weeks' minimum entitlement. The government is currently considering proposals to increase the statutory minimum entitlement to 5.6 weeks (28 days including bank holidays).

Statutory entitlement cannot be carried over from one year to the next. Workers cannot be paid in lieu of taking statutory holiday, except on termination of the employment.

Mobile workers are entitled to adequate rest, meaning regular breaks to guard against tiredness.

• Guidance from the trade union Amicus on the Road Transport (Working Time) regulations
• DfT guidance on the Road Transport (Working Time) regulations

Sickness

Employers are required to pay statutory sick pay to employees who are off work due to illness or injury, after the third day of absence (subject to certain qualifications). This is currently £70.05 a week. Employers sometimes supplement statutory sick pay with contractual sick pay for a specified period.

• Department of Work & Pensions guide for employees: Statutory Sick Pay
• HMRC: What to Do if Your Employee is Sick

Pensions

All employees are entitled to join an occupational pension scheme with the company after three months of service. If at such time the employer cannot provide an occupational pension scheme, it is obliged to offer a stakeholder pension scheme. The employer is not obliged to make contributions to the scheme.

Gareth Edwards is a solicitor in the Employment Department of Reynolds Porter Chamberlain LLP.