Employment contracts are fundamental in defining the relationship between employers and employees. What happens if an employment contract is not signed? Can it still be enforceable? This blog explores the enforceability of unsigned employment contracts, and the legal implications involved.
Understanding Employment Contracts
An employment contract is a legally-binding agreement between an employer and an employee that outlines the terms and conditions of employment. These contracts typically include details such as job responsibilities, salary, benefits and termination procedures.
The Importance of Signatures
Signatures on employment contracts is evidence that both parties have agreed to the terms of the contract and conditions of employment. A signed contract provides clarity and reduces the risk of disputes. However, the absence of a signature does not automatically render a contract unenforceable.
Implied Contracts
In some cases, an employment contract can be implied through the actions and conduct of the parties involved. If an employee starts working and receives payment according to the terms outlined in the contract, it may be considered an implied contract, even if it is not signed.
A case example where debate regarding an unsigned employment contract occurred involves employee Wess v Science Museum Group 2014. In this case, Mrs. Wess, who began working in 1979, received a new contract in 2005 changing her notice period from six months to twelve weeks. Despite appealing her job grading, she didn’t object to the notice period change and continued working for nine years without signing the new contract. When dismissed with twelve weeks’ notice, the tribunal ruled that by working under the new terms without protest, she had accepted them.
Legal Precedents
Courts have often upheld unsigned employment contracts based on the principle of implied consent. If both parties act in accordance with the contract’s terms, the courts may determine that an enforceable agreement exists. However, this can vary depending on jurisdiction and specific circumstances.
Employer and Employee Conduct
The behaviour of both the employer and the employee plays a crucial role in determining the enforceability of an unsigned contract. Consistent actions that align with the contract’s terms can indicate mutual agreement and acceptance.
Potential Risks
While unsigned contracts can be enforceable, they also pose risks. Without a signature, it may be challenging to prove that both parties agreed to the terms. This can lead to disputes and legal complications. Therefore, it is always advisable to have employment contracts signed by both parties.
Conclusion
In conclusion, unsigned employment contracts can be enforceable under certain conditions, particularly when there is clear evidence of mutual agreement and conduct consistent with the contract’s terms. However, to avoid potential disputes and ensure legal clarity, it is best practice to have all employment contracts signed by both the employer and the employee.
At AWB Charlesworth Solicitors we have extensive experience in business law for large businesses, small businesses and start-ups. If you need legal advice at any stage, contact Michelle Coughlan on 01535 613661 or email michelle.coughlan@awbclaw.co.uk
Further reading
3 (legal) things that every new business should do!
What is a settlement agreement?
Director disputes – why they happen and what to do about them
External links of interest