Employment contracts are the backbone of employer-employee relationships, as they set out the rights and obligations of each party. Regularly reviewing these contracts is crucial for a variety of reasons, especially in a dynamic environment like the UK.

As employment law is always evolving, employers must make sure that their contracts are to up to date with the current legislation.

It is a good idea to schedule contract reviews at regular intervals, but employers should also be alive to anything which may trigger a contract review. For instance, contracts should be reviewed in light of any changes to the law or internal company policies. Over time, employees’ responsibilities tend to evolve, with more complex work being required of them. Due to this, job descriptions may expand, and updating employment contracts ensures that both parties have clear expectations and requirements of the role.

Employers should also consider reviewing and updating contracts in light of any organisational and structural changes. It is common for organisations to go through events, such as a merger, and it is important that any such changes be reflected in the employment contracts.

Best practices:

1. Set a regular review schedule: although this is variable across different industries, it is good practice to conduct contract reviews at least annually. A regular review schedule will help employers to not only reflect on any changes that have happened, but also prepare for any future changes.

2. Involve legal experts: it is important that employers engage with employment law experts to ensure that the employment contracts are fully compliant with the law. This is very important as employers may miss crucial changes to the law.

3. Keep records: employers should maintain thorough records of all contract reviews and updates to track changes and ensure transparency.

4. Employee consultation: as an employment contract is a legally binding contract, employers will usually need the employee’s consent to make changes to their employment contract. Employers should consider seeking feedback from employees regarding any changes the employer may want to make.

It is critical that you seek professional legal advice if you are unsure about reviewing and updating employment contracts. If you think that it’s time for a contract review for your organisation, please get in touch.