Starting employment

What is a contract of employment?

When you accept your job offer, you’ll normally receive a contract of employment. Your contract of employment is a legally binding document.

Your contract includes terms. These set out what both you and the employer need to do until it ends. Always check your contract terms are what were agreed when you accepted the job offer.

Your contract doesn’t have to be in writing or signed. You may receive your contract of employment by letter or email. When you receive it, keep it somewhere safe.

Your contract of employment normally starts on your first day of work.

Contract terms

These are the conditions, rules and policies an employer and an employee abide by.

These may include:

• Your rate of pay
• Your holiday entitlement
• Your hours of work
• Length of contract
• Any notice period if you want to leave
• Any notice period your employer must give you
• Your duties and responsibilities

What is an induction?

When you start your new job, you’ll be full of excitement and expectation. You’ll have lots to remember and get familiar with.

To help you, your new employer will normally take you through an induction. It can be a formal session with a large group of new starters. Or done on a one to one basis by your Manager.

Your induction is an opportunity to show you round and meet your new colleagues. You’ll also learn more about the company and role. It’s also an opportunity for you to ask any questions.

Some key parts of an induction:

• Company overview
• About the job
• Health and safety
• Terms and conditions of employment
• Human Resources

What you may expect:

Company overview

• Company structure
• History
• Company culture
• Company policy/rules

About the job

• Job description
• Introduction to your new team members
• Systems
• Work processes
• Key tasks
• Responsibilities

Health and safety

• Health and safety policy
• Safety at work
• Data Protection
• First aid
• Fire safety

Terms and conditions of employment

• Written terms and conditions issued
• Contract issued
• Hours of work
• Method of payment
• Holidays
• Probation period
• Period of notice for both parties
• Pension and other benefits

Human Resources

• Appraisal process
• Complaints process
• Training and development
• Other company policies, for example, holidays, sickness and child birth leave

What they include

One thing you’ll look forward to receiving in your new job, is your first payslip. Your contract tells you how long you must work before you get paid.

When you do get paid, you’ll receive a payslip. Payslips are proof of your earnings. They also show the income tax and other outgoings from your salary.

You may receive your payslip in printed form or online. You should receive your payslip on the day or before you get paid. When you receive your payslip, keep it safe and check everything is right.

What payslips must show:

• Your income
• Any deductions – Like tax and your pension contribution
• Your hours worked

Payslips also usually include:

• Your payroll number – Your unique number from your employer’s payroll team
• Personal information – Your name, and sometimes your home address
• Date – This is the date your pay should be credited to your bank account
• Tax period – The tax period for that payslip
• Tax code – Your tax code sent to by HM Revenue & Customs (HMRC)
• National Insurance number – This is your unique Department of Work and Pensions number
• Basic pay – Your pay before any deductions
• Net pay – The amount you are paid after deductions
• Company name – Your employer’s details will also be on your payslip

How often you get paid

Your contract of employment tells you how often you get paid. This may be weekly or monthly. The amounts of deductions for tax and National Insurance can change from pay day to pay day.

Payslip deductions usually include:

• Income tax – This is based on your annual income and shows as PAYE (pay as you earn) on your payslip
• National Insurance – This goes towards your state pension and other benefits
• Pension payment – These payments go towards your company pension
• Student Loan – If you’re making repayments on a student loan

Tax when you change jobs

If you change your job, your former employer will give you a document called a P45. This document is very important as it includes your tax code. The page showing your tax code is needed by your new employer. This makes sure that you pay the right level of tax.

What are employee benefits?

Your employee benefits are other things each employer may offer you on top of your wages.

Some employers allow you to select which benefits you would like, other have a set list of benefits you get when you start.

It is worth asking about these during your induction. You can also read your contract to see what benefits you are entitled to.

Here are some examples of benefits:

• Workplace pension
• Holidays
• Healthcare

Workplace pension

It's a good idea for you to try to save some extra money for when you retire. Your workplace pension is money you save while working. You'll use this money to live on when you retire.

Your employer has to offer a workplace pension scheme by law. A workplace pension scheme takes money from your wages. This money goes into a separate fund. This money grows until you leave the company or retire. Your employer must make payments into the scheme as well.

This is a minimum of 8% of your salary, as a pension contribution. It can figure vary depending upon your company’s pension scheme.

This is made up of 3% from your employer and 5% from your monthly salary. This means your monthly take home pay will be less.

You’ll receive an annual pension statement from your employer. Always keep this safe for future.

When you reach retirement age you’ll also qualify for a state pension. This is in addition to your workplace pension and is based on your National Insurance payments. It also depends how long you’ve made them for.

Minimum pension contributions

Holidays

Your contract details how much annual holiday you can have. Legally, you are entitled to some paid holidays.

There are other types of time-off work allowed, for example, maternity leave and time off when you’re sick. Check the role offers everything you want and need.

Healthcare

Your wellbeing is important to both you and your new employer. Some common types are, eye care vouchers, dental care, life assurance and sick pay.

Other employee benefits you may see:

• Bikes for work
• Bonuses
• Childcare
• Christmas bonus
• Parking spaces
• Vouchers
• Death in service – is a payment to your family in the event you die while employed

What to consider

Starting your new job can be an emotional time. There will be many things to consider when you start.

Here are a few thoughts to help you when you start;

Things to consider:

• Create a good first impression
• Get on with your colleagues
• Be on time
• Maintain good attendance
• Have a good attitude
• Be flexible

Once you’ve started your job, you’ll find the workplace is constantly changing and evolving. It’s important for you to grow your skills and qualifications.

Here are some suggestions to help you:

Develop your skills

Take time to develop your skills in your current role. Make sure your skills develop in line with the company. This can help with your own and the company’s growth.

Further your education

It's important to look for ways to grow in your career. Gaining suitable qualifications can help you get promoted and perform your job better.

Develop your knowledge

Find out more about new technologies, industry news and what your company’s plans are.

Related learning links