GUEST COMMENT: A lawyer's perspective on the pitfalls of starting a new job
In this market, it can be very challenging to find a new job. When you do, it's likely you'll be asked to complete a probationary period of 3-6 months and sometimes longer. During this time, your employer usually reserves the right to terminate your contract at short notice - often one week.
When you pass the probationary period, your notice period will usually increase. However, I've come across plenty of cases when employees have worked through their probationary period, but haven't been told about it. If their employment is subsequently terminated, the employer will try and evoke the short notice period! So make sure you get confirm that you've passed your probation.
Let's assume this is the case. Is your employment position then safe? Actually it isn't.
Your employer has until the end of the first year of your employment (technically 11 months and 3 weeks) during which time they can still terminate your employment without fear of the employee making a claim for unfair dismissal.
This is because employment legislation provides that you need to be employed for exactly this amount of time an unfair dismissal claim. Many employers are aware of this, and will fast track an employee out of employment while they can still do so without being fearful of repercussions. The exception to the time limit is discrimination claims, which can be brought at any time.
Many employees are unfortunately not aware of the one year rule when they start a new job. I have encountered many headstrong people, particularly in banking, who have rubbed their line managers up the wrong way or somehow have made little effort to gel with their team. Such employees are perceived as "trouble" by their employers and in a market where there is no shortage of alternative candidates, unlikely to survive long in his job.
Other things to look out for when starting a new position include a written statement of the particulars of your employment. This will set out your job title, rate of pay, hours of work, holiday entitlement and other basic terms. It's not a contract as such, but is evidence of the basis upon which you are working. Most banks will provide you with a proper contract of employment and it is important to make sure that it reflects what you have agreed.
If you're expecting a bonus, check the bonus clause in your contract. Ideally, it shouldn't give your employer the discretion to avoid paying a bonus altogether.
You should also check your notice clause. Some banks are flexible about notice periods, but you can usually expect 3-6 months, unless you're in a very senior position in which case 12 months will be the norm. Also, make sure your place of work is properly specified - the contract may reserve the right to move you to another location, possibly abroad. If you refuse, you could jeopardise your right to a redundancy payment.
Many employees don't appear to consider the ramifications of the contract that they sign (and I suspect do not even read the contract in detail in the first place). As always, it's better to obtain professional advice on the contract (preferably before it is signed) if you are in any doubt as to its terms.
Feel free to contact Philip on pl@lzwlaw.co.uk or 020 7357 -9494 for a free consultation on this or any other employment law issue.