I Have No Contract of Employment: What Are My Rights?
Having an employment contract has become a common practice before any employee joins a company. This document outlines the rights, responsibilities, and expectations of both the employee and the employer.
In other words, it defines the employment agreement. However, there are still instances where an employee starts working without a formal contract.
Although not illegal, working without a contract of employment can be risky. Contracts exist to establish clear terms and protect employee rights, including in cases of wrongful termination. Without one, an employee may find themselves in a vulnerable position.
What Happens If I Don’t Have a Written Employment Contract?
In the UK, while it is common practice for employers to provide written contracts, there is no legal requirement for a contract to be in writing. This means that even if you have not signed a formal contract, you may still be considered an employee and entitled to legal protections.
Is It Legal to Work Without a Contract?
Yes, it is legal to work without a written employment contract. However, not having one can create uncertainties regarding your job responsibilities, pay, working hours, and notice periods.
UK employment law states that as soon as you start working for an employer, an employment relationship exists, regardless of whether you have a written contract or not. If you receive regular wages and perform duties under the employer’s direction, an implied contract may exist.
Employers are legally required to provide a written statement of employment particulars within two months of your start date if you are employed for longer than one month. This document is not a full employment contract, but it outlines:
- Your job title and duties
- Your employer’s name and your place of work
- Pay and working hours
- Holiday entitlement and other benefits
- Notice periods for termination
Even if your employer fails to provide this statement, your statutory rights still apply.
Types of Employment Agreements Without a Written Contract
If you do not have a written contract, your employment terms may still be legally recognised in different ways:
1. Verbal Agreements
In some cases, your employer may have verbally offered you a job, discussed your salary, working hours, and responsibilities, and you may have accepted these terms. While verbal agreements can be legally binding, they are difficult to prove in case of disputes.
2. Implied Contracts
An implied contract arises when your employment conditions are understood based on your work pattern and how your employer treats you. This is often determined by:
- Regular working hours and shifts
- Consistent salary or wage payments
- Employer-provided equipment or workspace
- Access to company benefits (e.g., pension schemes, paid leave)
For example, if you have been working in the same role for several months, receiving regular wages, and following the employer’s instructions, your employer cannot suddenly claim that you are not an employee just because there is no written contract.
3. Statutory Rights
Regardless of the type of agreement you have, statutory employment rights always apply. These include:
- The right to national minimum wage
- Paid holidays (5.6 weeks per year)
- Rest breaks during work
- Protection from discrimination under the Equality Act 2010
- A safe working environment under health and safety laws
These rights exist automatically and cannot be waived by an employer, even if there is no written contract.
Risks of Working Without a Written Contract
While it is legal to work without a contract, it can expose employees to several risks:
- Unclear Job Expectations: Without a contract outlining duties, disputes can arise over job roles and responsibilities.
- Payment Disputes: If payment terms are not documented, employers may delay or refuse full payment, and proving your agreed wages can be difficult.
- Lack of Job Security: Notice periods and redundancy terms may be unclear, making it easier for an employer to dismiss you without warning.
- Difficulty Proving Employment Status: In legal disputes, proving that you were an employee without written evidence can be challenging.
- Limited Access to Benefits: Without clear agreements, employers may deny entitlements like sick pay, pension contributions, or maternity leave.
What Should You Do If You Don’t Have a Written Contract?
If you are working without a formal contract, take steps to protect yourself:
- Ask for a written statement: UK law requires employers to provide a basic statement of employment details within two months.
- Keep records: Save all payslips, work schedules, emails, and any communication that discusses your job terms.
- Document verbal agreements: If you agree on job terms verbally, follow up with an email summarising what was discussed.
- Understand your statutory rights: Even without a contract, you are legally entitled to fair pay, rest breaks, and protection from discrimination.
- Seek legal advice if needed: If your employer refuses to provide written terms or violates your rights, you can seek assistance from Acas or an employment lawyer.
While a written contract is always preferable for clarity and protection, not having one does not mean you are unprotected. UK employment laws ensure that workers have basic rights, regardless of whether an agreement is formalised in writing.
Do I Still Have Employment Rights Without a Contract?
Even if there is no formal agreement, UK employment law provides statutory rights to workers. These rights are automatically granted and cannot be taken away by an employer.
Key Rights Without a Written Contract:
- National Minimum Wage: Employers must pay at least the legal minimum wage based on age and job type.
- Paid Holidays: Employees are entitled to at least 5.6 weeks of paid annual leave per year.
- Rest Breaks: Workers must have adequate rest breaks, including a 20-minute break if working more than six hours.
- Safe Working Conditions: Employers are legally required to provide a safe working environment.
- Protection from Discrimination: The Equality Act 2010 ensures fair treatment regardless of race, gender, age, disability, religion, or other protected characteristics.
- Sick Pay Entitlement: Employees meeting certain conditions can qualify for Statutory Sick Pay (SSP).
These rights apply to all employees, regardless of whether they have a written contract. Employers cannot deny these benefits or alter them unfairly.
What Are My Notice Period and Dismissal Rights Without a Contract?
Employers cannot terminate employment without following proper procedures, even if there is no written contract. UK law requires minimum notice periods based on the duration of employment.
Statutory Notice Periods:
Length of Service | Minimum Notice Period |
1 month – 2 years | 1 week |
2+ years | 1 additional week per year of service (up to 12 weeks) |
An employer must provide at least one week’s notice after one month of continuous employment. If you have been with the company for over two years, your notice period increases by an additional week for each year of service, up to a maximum of 12 weeks.
Protection Against Unfair Dismissal:
- Employees cannot be dismissed without valid reasons once they have worked for two years.
- Certain dismissals, such as those related to pregnancy, discrimination, or whistleblowing, are automatically considered unfair.
- If dismissed unfairly, employees can take legal action through an employment tribunal.
Employees should always request written confirmation of their dismissal and reasons for termination. If notice periods are not followed, legal action may be necessary.
What Are Implied and Express Terms in Employment?
Even in the absence of a formal contract, employment agreements contain implied and express terms that govern the working relationship.
Implied Terms
Implied terms are not always written down but are legally expected as part of the employer-employee relationship. These include:
- The employer’s duty of care, ensuring a safe and healthy workplace.
- The employee’s obligation to carry out reasonable instructions from the employer.
- The expectation that both parties will act in good faith towards each other.
- A requirement for equal pay for equal work, regardless of gender.
Employers cannot demand that employees perform illegal tasks or work in unsafe conditions. Employees are also expected to act responsibly and not disclose confidential company information.
Express Terms
Express terms are agreements made explicitly, either verbally or in writing. Even without a formal contract, express terms can be established through:
- Offer letters
- Email communications
- Employee handbooks
- Verbal agreements during interviews
Common express terms include:
- Salary and payment schedules
- Working hours and overtime rules
- Holiday entitlement
- Sick leave and other workplace benefits
- Job responsibilities and performance expectations
If disputes arise, these records can help clarify employment terms and prove an agreement existed. Employees should always keep a written record of any agreements with their employer.
Can My Employer Change My Job Terms Without a Contract?
Without a written contract, it may be easier for an employer to make changes to working conditions. However, employers cannot change fundamental job terms without consulting the employee.
Changes That Require Employee Agreement:
- Reduction in pay
- Increase in working hours
- Change in job role or responsibilities
- Removal of benefits such as paid leave or pension contributions
If an employer attempts to make unfair changes without consent, employees have options:
- Discuss the changes with the employer and request written confirmation.
- Raise a grievance if changes negatively impact working conditions.
- Seek legal advice if the employer forces changes without agreement.
Unilateral changes to employment terms can be challenged through an employment tribunal if necessary.
How Can I Protect Myself If I Have No Contract?
Employees working without a contract should take proactive steps to ensure their rights are protected.
Steps to Protect Yourself:
- Keep detailed records: Maintain copies of payslips, work schedules, and any written communication regarding job terms.
- Request a written statement: UK law requires employers to provide a written statement of employment details within two months of starting work.
- Know your rights: Understanding statutory rights can help employees challenge unfair treatment.
- Seek advice: Employment lawyers or advisory services like Acas can provide guidance if disputes arise.
If an employer refuses to acknowledge legal obligations, employees can take action through formal grievance procedures or legal channels.
What Should I Do If My Employer Is Violating My Rights?
If an employer fails to uphold statutory rights or engages in unfair treatment, employees have several options to address the issue.
Steps to Take If Your Rights Are Violated:
- Raise the issue informally: Speak to the employer or HR department to attempt a resolution.
- Submit a formal grievance: If the issue persists, file a written complaint with supporting evidence.
- Seek external support: Organisations like Acas provide free advice and mediation services.
- Consider legal action: If necessary, employees can take their case to an employment tribunal.
UK employment laws are in place to protect workers, regardless of whether they have a written contract. Employees should not hesitate to challenge unlawful actions by their employer.
Conclusion
Even if you don’t have a written contract, you still have legal rights under UK employment law. Understanding these rights can help you protect yourself from unfair treatment and ensure you receive fair pay and working conditions.
If you are facing issues, consider seeking legal advice or contacting Acas for guidance on resolving workplace disputes.
FAQs About Contract of Employment
Can I be dismissed without notice if I don’t have a contract?
No. UK law requires a minimum notice period based on how long you have worked for the employer.
How can I prove my employment if there’s no contract?
Payslips, work schedules, emails, and witness statements can all be used as evidence of employment.
Do freelancers and contractors have the same rights?
No. Self-employed workers and contractors have different legal protections compared to employees. However, they may still have rights under specific agreements.
Can I ask my employer for a written contract after starting work?
Yes! Employers are legally required to provide a written statement of employment particulars within two months of starting work.
What happens if my employer refuses to follow statutory rights?
You can report them to Acas, the Employment Tribunal, or seek legal assistance.
Does a verbal agreement hold up in court?
Yes, but it can be harder to prove. Keeping written records of agreements is advisable.
How do I claim unpaid wages without a contract?
You can file a claim with Acas or take legal action through an employment tribunal.