Employment Contract Clauses

[tennantcreek]

Hello, thank you so much for being here!

I am stepping in on behalf of my father who isn't very well at the moment and have a few employment contract questions. He is about to take on a new member of staff and they have been shown their contract - they have raised a few questions.

Below are the remarks they have made in an email to him:

"There are a couple of clauses that I feel could be reviewed, the Deduction of pay clause, for example: 'The Employer shall be entitled to suspend the Employee’s employment without pay in the event of the Employee refusing to obey a lawful order including (but not restricted to) those given to comply with the Employer’s statutory obligations.' This clause as written is describing one of the 'fair reasons for dismissal' in a disciplinary process but I feel it is not necessary to have it listed in the contract. If a situation were to arise that would lead to suspension or even dismissal, I would be entitled to a fair investigation and disciplinary process regardless of such a clause. Suspension should be paid pending investigation, as it should not be used as punishment and while I accept that failure to follow the procedures for suspension may result in unpaid suspension, I do not agree to it under any other circumstances."

"Clause 22, Indemnity, I feel also needs to be reviewed:'The Employee will indemnify the Employer in respect of any liability incurred by the Employer as a direct consequence of the Employee’s negligence, breach of contract, breach of duty or breach of trust in relation to the affairs of the employer.' This is a little too unclear, I would like for any negligence and dishonesty to be evidenced via a fair disciplinary process, I am not comfortable signing a blanket statement to accept responsibility within my contract."

Please could you advise how he should respond.

[ULA]

In relation to the first clause is this extract just a part of the complete clause definition or the complete definition. if the latter then the definition is certainly not typical of such a clause. Typically how you treat suspension for gross or serious misconduct, for which refusing to obey a lawful order may be an example and whether or not this period would be paid or not, would typically form part of your Disciplinary Policy under a heading of suspension

A typical deduction of wage clause reads "The Employer reserves the right at any time, or in any event on termination, to deduct from salary by way of offset any overpayment made and/or monies owed to the Employer by the Employee, including but not limited to, any excess holiday, outstanding loans, advances and the cost of repairing any damage or loss to the Employer’s property caused by the Employee."

Clause 22 - this is one I have seen before but not all that often in employment contracts. My first question would be how relevant is it to the job that the person is doing? Secondly if you do want to keep then would your father be happy to provide some additional wording that covers in broad terms the evidencing of such acts by the employee.

I hope that helps but if you have any further questions just come back and ask.

[tennantcreek]

Thank you very much for your reply.

The full wording of the first clause reads:

6. Payment
The hourly rate for this role is £9.40 per hour.
All additional hours should be claimed at the set hourly rate of £9.40 per hour.
Salary is payable monthly in arrears by bank transfer on the last working day of the month.
Deductions from wages;
The Employer shall be entitled to suspend the Employee’s employment without pay in the event of the Employee refusing to obey a lawful order including (but not restricted to) those given to comply with the Employer's statutory obligations.
The Employer reserves the right and the Employee irrevocably authorises the Employer, at any time during the Employee’s employment, or in any event upon termination, to deduct from the Employee’s wages/salary and/or any other monies due to the Employee, an amount equivalent to any of the following:
(i) Any overpayment of wages, salary, remuneration or other payment made to the Employee during the course of this employment;
(ii) The amount of any expenses claimed by the Employee and paid but subsequently disallowed by the Employer,
(iii) Any cost of repairing any damage to or loss of property of, any fines or charges imposed upon or any other loss sustained by the Employer or any third party, caused by the Employee’s breach of contract or breach of the Employer’s rules or as a result of the Employee’s negligence or dishonesty.

With the second clause, my father says he would be happy to remove it.

[ULA]

Thank you for the clarification of the clause. Certainly the first part of that clause relating to suspension is not one that I have seem before included in a Deduction from Wages contractual clause - not sure that is the correct place for it.

However it would help if you could explain what it is that your father wants to achieve by suspending employment without pay - is this to investigate the reasons for the "employee refusing to obey a lawful order including (but not restricted to) those given to comply with the Employer's statutory obligations."

[tennantcreek]

Thank you very much for your advice.

It seems the contract was a copy that an ex-business partner had drawn up and the above clauses aren't necessary in this current situation and will be edited out.

I very much appreciate that you were able to help clarify all this.

[ULA]

Glad we have been of help