Farmers who employ staff and who do not have contracts of employment in place for them are leaving themselves exposed to new employment regulations that came into force in October 2004. To help protect themselves and their workforce, rural business consultants Strutt & Parker are advising employers to ensure employment contracts are written for all staff, and are up to date. This includes full and part time including any from overseas.

The firm’s advice is also pertinent to those who employ staff aged around 65, and who are due to retire. That’s because the Employment Equality (Age) Regulations 2006 give new rights to employees over 65. To cite just a few of the new rules - employers must give employees six months notice of retirement to allow them to plan, and the upper age limit for unfair dismissal or redundancy payments has been scrapped and staff now have a right to request to work beyond 65!

While the likelihood of needing to dismiss a worker of that age may be slim, the waters can be severely muddied when it comes to retirement, says Strutt & Parker’s Richard Taylor, Farm Business Consultant from the Firm’s Northallerton office. A contract of employment and being aware of the new Age Regulations can help keep the water clearer, he adds.

“Even if an employee has a contract of employment which states he must retire at 65 he can request to continue working when he passes that age. The employer cannot necessarily enforce his retirement. If the employee is forced to retire, or even if it could be interpreted as him being forced to do so, there could be a case for unfair dismissal in the worse case scenario.”

“An employer should also follow the correct grievance and disciplinary procedures whenever this becomes necessary; the regulations for which changed in October 2004” says Mr Taylor.

“In all situations a well written employment contract can be invaluable. The points it should set out include: the rate of pay, hours of work, holiday allowance, the notice periods required by either party, the basis of the business’ grievance and disciplinary procedures, and retirement and pension policies. It is good for the employer, and for the employee too. Neither party should view it as being onerous, or as a tool that will be used to beat them over the head with at a later date. It is a sensible practice for both sides.”