Article reviewed: 2013/02/02 | Next review due: 2014/08/21

A permanent contract is the most common type of employment, an indefinite contract whereby you are employed by the company until such time as the employer or the employee no longer wish to work there. All permanent contracts must include a Principal Statement, detailing the following:

  • Your name and your employer’s name
  • Your job title or a brief job description
  • The date when your employment began
  • Your pay rate and when you will be paid
  • Your hours of work
  • Your holiday entitlement
  • Where you will be working (if you are based in more than one place it should say this along with your employer’s address)
  • Sick pay arrangements
  • Notice periods
  • Information about disciplinary and grievance procedures
  • Any collective agreements that affect your employment terms or conditions
  • Pensions and pension schemes
  • If you are not a permanent employee how long your employment is expected to continue, or if you are a fixed term worker the date your employment will end

As the contract is a mutual agreement, the employer has to give work to an employee in exchange for a paid salary, and likewise, the employee is obliged to work. If an employee refuses to work, the employee is there for in breach of contract,

As permanent contracts can last for an indefinite duration, employers are obliged to add some flexibility into the contract, such as working hours, any employee benefits, maternity pay rules, and also details should they change hours or the place of work.

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