Spring clean your employment contracts: pensions and PILONs may need attention

Spring is in the air and it is an excellent time to refresh your employment contracts. Even contracts that are kept under regular review may have become a little outdated as a result of all the developments in employment law over the last 12 months. It is also a good time to plan for forthcoming changes, particularly where you will have new statutory duties to take into account. Which provisions in your contracts might need a spring clean? Key issues to consider include:

  • Legal updates/compliance: Are your contracts up-to-date and legally compliant? In particular, you may need to make changes to your contractual pension provisions as a result of auto-enrolment. 
  • Interplay with company policies and practices: Do your contracts operate in harmony with your company’s policies and practices? In particular, you may need to make changes to your pay in lieu of notice provisions (and/or internal practices) as a result of the Geys case.
  • Flexibility for the future: Do your contracts provide your company with the rights and the flexibility you need to allow for future changes, such as the Government’s flexible working proposals, the expansion of the law on whistleblowing, and various changes to pensions and benefits?

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