The King of Compliance!
Nathan Atkinson CPHR
Strategic Human Resources | Managed HR & Payroll | Recruitment | Training
👑I call employment contracts ‘the king of compliance!’
If your business doesn’t have signed contracts with every employee, you’re exposing yourself to significant risks! 🚩🚩
But it’s not just about getting signatures. The concept of "capacity to contract" is extremely important and it’s essential for all businesses to understand its fundamentals (Gah, more stuff for business owners!).
🧒Minors (under 18) generally can't enter into legally binding contracts, and such contracts are typically voidable at their discretion. However, contracts that are beneficial to minors—like apprenticeships, traineeships, or valuable employment opportunities—can be binding. When dealing with employment contracts for minors, make sure they fully understand the terms and that the role offers real benefits like skill development.
✅Mental incapacity also affects the validity of employment contracts. This includes cases where someone has an intellectual disability or is intoxicated. Intoxication is straightforward—employment discussions and contract signings shouldn’t happen when someone is drunk. Intellectual disabilities are more complex. Ensure that the person signing the contract understands its terms, which may involve explaining the contract clearly and giving them enough time to seek independent advice.
🗨️Many employees might not fully grasp legal jargon or complex employment procedures. To ensure the contract is valid and that everyone understands their expectations, explain the terms in plain language. Provide ample time for them to read, comprehend, and seek legal advice. Avoid pressuring them to sign and return the contract within 24 hours!
In summary, it’s not just about having an employment contract—it’s about making sure your staff truly understand what they’re agreeing to!
This area can be complex and lots of other factors may need to be considered - so this is general in nature and intended to spark conversation. Speaking about conversation - let's talk HR (and contracts - I swear it will be fun!) Let's catch up for a coffee (coffees are on me!)
😎 0481 877 880
(or send me a LinkedIn message)!