When you have a mix of permanent and seasonal staff, which might include family members, and everyone knows their role in the business, it is easy to think that you do not need written contracts nor is it necessary to keep existing contracts updated. However, particularly in uncertain times like these, the benefits of having up-to-date contracts of employment and worker agreements could not be greater.
Realistically, a working relationship cannot be defined on a piece (or several pieces) of paper. Nor would you want it to – there needs to be some flexibility and mutual trust. A written contract provides a framework though and recognises key rights and obligations, which in turn helps staff feel informed, valued and engaged.
Since 6 April 2020, it has been a legal requirement for employers to provide workers (not just employees) with a written statement of their terms and conditions from the first day of their employment or engagement. A written contract of employment does more than fulfil this obligation. It sets out the fundamentals (e.g. when and where an employee will work), permits an employer to do certain things which might otherwise not be possible (e.g. suspend an employee, require them to attend an occupational health appointment, put them on garden leave), and can protect a business during employment and even after its termination (e.g. via a confidentiality clause or restrictive covenants).
In a farming context, where working hours can be irregular and external factors such as the weather may mean duties need to change at short notice, it would be sensible to include clear terms on when staff can be asked to work overtime and how much they will be paid, the process for requesting holidays and, possibly, a mobility clause which provides for the employee to be required to work at different location to their normal place of work.
Casual worker agreements are important for seasonal workers and allow the farm business to adapt its workforce to the work available. It is, however, important to recognise that working relationships may change over time according to how the arrangements operate in practice. For example, someone on a zero-hours contract who regularly works 20 hours a week on the farm and has done for several years is likely, in practice, to be an employee.
Where accommodation is provided as part of employment, it is vital to include a carefully drafted service occupancy (also known as tied accommodation) clause in the contract, particularly if there is not going to be a separate service occupancy agreement. It is important to distinguish a licence from a service tenancy if the intention is that the employee will vacate the accommodation when their employment terminates – this may turn on whether there is an express term in their contract or whether it is essential that they occupy the accommodation in order to perform their duties.
As NFU panel member covering Northumberland, Tyne and Wear, Durham and North Riding, Jacksons Law Firm regularly advise farmers and farm businesses while our Employment Team are used to reviewing and preparing contracts of employment, casual worker agreements and other employment documents such as staff handbooks, policies and procedures. NFU members receive a 12.5% discount on legal fees connected to the farm business and may also be eligible for funding under the NFU contract checking service. If you need to put contracts in place or feel it is time to review your existing contracts or other employment documents, please contact Paul Clark, Head of Employment to discuss how we can assist your business.
To speak to someone in the employment team call 01642 356500/0191 2322574.
Paul Clark, Partner and Head of Employment Law
