Case study: advising employer on the risks of offering an employee two contracts

Our employment contract solicitors advised a Bristol business on the risks of offering two contracts to an employee who held two separate jobs for the same company.

Background: two roles at the same company

The employee had worked in the organisation’s Hospitality team, working 40 hours per week on a full-time, permanent contract. He took on an additional role at the same company, working in a different department on a casual contract, increasing his total working hours per week to 55 hours.

Advising the employer

Our employment lawyers guided our client on the risks associated with offering two jobs to the employee. We advised them that the employee would need to sign a separate 48-hour opt-out agreement.

What is a 48-hour opt-out agreement?

An employer gives employees a 48-hour opt-out agreement to sign if they wish to work more than 48 hours per week. Employees can cancel the agreement at any time, but they must give their employer no more than three months’ notice.

Some workers are exempt from opting out, including:

• Airline staff
• A worker on ships or boats
• Some workers in the road transport industry
• Staff who travel in and operate vehicles covered by EU rules on drivers’ hours
• A security guard on a vehicle carrying high-value goods

Other considerations for the employer

Our employment lawyers also advised our client on other aspects of the employee’s contracts, which included:

Redundancy

In terms of redundancy, the employee could be considered to have continuous service from the day he started his first job as part of his second role at the company, not the date he began his second job.

Statutory Sick Pay (SSP)

The employee would only be entitled to Statutory Sick Pay if he was incapable of carrying out the duties of both jobs. SSP would not have to be paid to the employee if he was able to carry out the duties from one of the roles.

National Insurance (NI)

If the employee paid National Insurance for each contract separately, they could have double the entitlement. However, if NI was payable to both contracts collectively, only a single entitlement would be permitted.

Holiday entitlement

Our client should maintain up-to-date records of the employees’ annual leave, ensuring the employee receives the correct entitlement across both contracts.

Disciplinary matters

Our client would need to decide, if it ever arose, whether disciplinary action applies to both contracts or to each role individually. This should be clearly clarified with the employee.

Pension arrangements

Pension obligations would apply to each contract, with our client responsible for ensuring compliance with automatic enrolment onto the pension scheme and regulations of each contract.

Contractual benefits

Our client would need to consider whether any contractual benefits offered by them apply to each contract separately or across both roles.

Contact our employment contract solicitors

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