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When is a contract not a contract?

4 replies

Lostmymarblerun · 22/03/2015 12:53

My DH has been working for an investor for just under 2years as an MD on a permanent basis. He was never issued a contract by the investor, however DH created employment contracts for all his employees and when doing this created his own contract. The difference between his employee contracts and his is simply salary and notice period. He now wishes to leave and the contract he created which the investor has never seen BTW says he needs to give 6 months notice. He would like to go earlier and wants to understand his legal position. Is the contract he issued himself even binding? Can he leave earlier and forfeit the pay, would be happy to do so.

Fear this may get nasty so any advice greatly appreciated, will post in employment issues too.

OP posts:
tb · 22/03/2015 14:07

AFAIK, the only legal notice period that an employee needs to give is the same as the frequency that they're paid. So, even if you have the right to 3 months' notice you only need to give 1 month if you're paid monthly.

Collaborate · 22/03/2015 16:56

The legal notice is the contractual one in this instance.

Amummyatlast · 23/03/2015 20:39

Tb, that's not true. You are obliged to give (and be given) either the notice in your contract or the statutory minimum, whichever is the greater.

JillyR2015 · 23/03/2015 21:02

"he only legal notice period that an employee needs to give is the same as the frequency that they're paid. So, even if you have the right to 3 months' notice you only need to give 1 month if you're paid monthly."

That is completely wrong.
The contractual period applies and just because a director issued a contract to himself does not make it ineffective.

In practice he is not likely to be held to the 6 months although he may well be held to a clause saying he must not work for a competitor for a certainly period after his employment is over.

If he leaves earlier it is probably unlikely the company will obtain an injunction against him to stop that -it does happen but is rare. His best thing would be to negotiate with his employer and I do not believe he has a duty to tell them what his contract says although they might find it. So he could negotiate that he can go after a month say and that is agreed between them although he should not lie or mislead them. Is he a director registered as such at Companies House?

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