Fixed Term Employment Agreement with Restrictive Covenants Template

Fixed Term Employment Contract with Restrictive ClausesUpdated

EMP.RC.01.03

This Fixed Term Employment Agreement is designed to be applicable to a variety of different jobs where the employee is taken on for a defined or fixed term.

Employers must provide workers and employees with a written statement of their main terms and conditions of employment and this is often known as a Standard Form Section One Statement.

This Contract covers the requirements of a Standard Form Section One Statement. From 6 April 2020, there are new rules on what must be included in a written statement for new starters and pre-existing employees will be able to request a written statement that complies with the new rules. This contract complies with these requirements and must be provided to the employee or worker by day one of employment.

The Fixed Term Employment Agreement contains provisions dealing with restrictive covenants. In particular, it contains the following covenants: Non-Compete Covenant, preventing employees or ex-employees from being involved in a competitor business; Non-Solicitation Covenant preventing employees or ex-employees from soliciting business from clients/prospective clients or suppliers and Non-Poaching Covenant preventing the employee from enticing away his/her former colleagues.

This employment contract has a General Data Protection Regulation (GDPR)-compliant data processing clause. After 25 May 2018, employers must use this clause, as employers will not be able to rely on the existing generic consent clauses.

Fixed term employees have the same minimum rights as permanent workers and are protected by the Fixed-Term Employees (Prevention of Less Favourable Treatment) Regulations 2002. Any clause or agreement which purports to waive rights regarding unfair dismissal or redundancy is void.

Please note that the Statutory Dispute Resolution Procedures still apply to dismissals due to the non-renewal of Fixed Term Employment Agreements since the ACAS Code of Practice does not apply to the non-renewal of Fixed Term Contracts on their expiry.

This contract includes a clause which entitles the employer to end the fixed term contract early whilst avoiding a potential claim for damages equivalent to the pay and benefits the fixed term worker would have received up to the time the contract was due to terminate.

Restrictive covenants should be no wider than is necessary to protect your “legitimate business interests”. If their scope is too wide, they may not be enforceable. Please ensure that you carefully consider each restrictive covenant, removing any that are not relevant to your particular business and to the specific employee. Ensure that time and geographical limits are appropriate and reasonable to the nature of your business.

The Pensions Act 2014 introduced a new state pension for people reaching state pension age on or after 6 April 2016, replacing the previous basic state pension and additional state pension and ending contracting out for defined-benefit schemes. This employment contract has been updated accordingly with the removal of the clause referring to the contracting out certificate.

This agreement contains the following clauses:

1. General
2. Duties and Job Title
3. Fixed Term
4. Date of Commencement / Date of Continuous Employment
5. Hours of Work
6. Place of Work
7. Work outside the UK
8. Remuneration and benefits
9. Collective Agreements
10. Holidays
11. Other paid leave
12. Training
13. Sickness Absence
14. Maternity and Paternity Rights
15. Pension
16. Non-Compulsory Retirement
17. Mobility
18. Grievance Procedure
19. Disciplinary Procedure
20. Staff Handbook and Employment Policies
21. Confidential Information
22. Restrictions during Employment and after Termination of Employment
23. Data Protection
24. Changes to Terms and Conditions of Employment
25. Severability
26. Governing Law

Clauses with optional and alternative phrases
Options and alternatives appear in blue font. The way in which this document is designed ensures that it will make sense with or without the optional clauses. Tailor this contract by removing all phrases and clauses which are not relevant to your business. Once you have finished, please remember to highlight the whole document and switch the font colour to black.

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