Employment Defined

What is a job?

A job is the performance of a task which you are obliged to do under direct contracts of employment, or under some other contract with an employment agency.

What is a career?

A career is a job that usually requires specialist training, or some other specific type of training to help you fulfil that position.

What is a contract of employment'?

A contract of employment is a legal document which has been signed by both the employer and an employee at the beginning of an employment relationship. Every contract of employment has to set out specific things by law. For example, it will set out your basic terms and conditions, such as your job title, your duties, the hours of your work, the place of your work, what your salary is going to be and what sick pay you're going to be entitled to. Those are the basic rules of your employment with your employer.

What are express terms' and implied terms'?

Expressed terms are those duties which are expressly set out in your contract of employment. Implied terms aren't expressly set out in your employment but they are also important terms which govern your employment contract. They may have been incorporated because of customer practice, or because of legislation or case law. They will be implied terms because they are quite important terms to govern your employment, but they won't actually be set out in your employment contract.

What is an example of an express term?

An express term would be, for example, that you would be paid a certain salary. That's an express term.

What is an example of an implied term?

An example of an implied term, and one of the most fundamental implied terms in employment relationship, is that of trust and confidence between an employer and employee. Both owe this obligation towards each other. This implied term basically means that you have to have an honest relationship with each other.

What is minimum wage'?

Minimum wage applies to all workers. It was basically brought in to insure any competition between companies, not because employees were being paid a low wage, but because they were producing goods and services. Minimum wage, at the moment, is currently set up for twenty-two year olds at £5.30 per hour. The minimum wage is a little bit less for people who are below the age of twenty-two.

How do I get paid?

How you get paid will be set out in your contact of employment. It may be that your salary, less tax and national insurance contributions, will go straight into your bank account. You may get a cheque, or you may get paid in cash.

What is overtime, and will I be entitled to it?

Overtime is a payment paid to you for work that you do over and above your contractual hours. You will only be entitled to overtime if your contract of employment says that you are entitled to it.

What are bonuses, and will I be entitled to any?

A bonus is a payment made in addition to your salary. Some bonuses are contractual, in which case you need to look at your contract of employment to see if you are entitled to a contractual bonus. Other bonuses are discretionary, and that's basically where the employer decides whether or not they are going to make a bonus payment to you. The employer has to do that in a rational and fair way if a bonus is going to be paid.

What is a Trade Union, and should I join one?

A Trade Union is an association of workers whose main job it is to improve and maintain the conditions for their workers. Whether or not you should join one is really a personal choice. You pay a regular subscription fee if you want to join one. The benefit of joining one is that you have the experience of your Trade Union representative, in order to accompany you, for example, to a disciplinary or a grievance hearing. They'll be able to come along with you. You can sometimes get legal advice from them. Also, more importantly, your Trade Union, if recognised by your employer, will be able to negotiate on your behalf in respect of quite important benefits to which you may be entitled.

What is a P45?

A P45 is a form filled out by your employer when you leave its employment. It will basically set out what's actually already been paid and make sure you don't pay any extra tax when you enter unemployment.

What is a P46?

A P46 is a form filled out by your new employer and is only filled out if you don't have a P45. A P46 will basically make sure that you pay the right tax when you start your new employment.

What is a P60?

A P60 is a form given to you at the end of the tax year by your employer, and it will set out all the income that you've received and the taxes you've paid on that income. It won't just be your salary but also any perks or other benefits you might have received. A P60 will basically set out what your final tax code has been for the year to make sure you've paid the right tax in that year.

What other forms should I be aware of?

There are two forms that you need to be made aware of. The P11D, if you earn over £8,500 per year, will set out any company perks or benefits you might have received which may also be taxable. The other form you might just want to be aware of is the self assessment tax form. If your tax affairs are slightly more complicated, you need to fill one of those out and send it back to the Inland Revenue.

What do the Inland Revenue do?

The Inland Revenue or, as its now called, the HMRC, Her Majesty's Revenue and Customs, is a government body which basically collects taxes and makes sure you've paid the correct taxes.