The law requires employers to provide employees working more than one month with a written statement of certain particulars of their employment. It must be given no later than two months from the start of the employment. Often the written statement is not used as a formal employment contract will be used as a more extensive document.
There are three types of workers in an optician practice:
First, there are the main practice partners and owners. Their position in the practice may be as partner/company director and employee. Often business owners will not have any service agreement for themselves. However, if you are in a partnership without an agreement, then you should take legal advice to ensure you have the most appropriate agreement in place.
Second, there are the dispensing opticians and other optometrists. The work relationship here usually varies from genuine employment (whether full or part-time) and being paid through the PAYE, to locums who are self-employed and in business in their own right. There is also a third category of workers who may be retained on an agency basis i.e. rented out. Where the work relationship involves genuine employment then we would recommend a relatively senior form employment contract. The reason why is you want to ensure the staff members have signed into non-compete restrictive covenants and confidentiality terms, and this provisions are often not included in shorter form employment contracts.
Third, there are the receptionists, practice managers and other support staff. Invariably these workers will be fully employed by the practice. They should each have a basic employment contract, similar but different, to that used for the employed opticians and optometrists.
From an employment law perspective there are many differences in the legal rights and obligations between the various types of workers, and the law in this area is constantly evolving, for example, whether the legal relationship between a worker and the practice is “employment” or “self-employment” is often a question of fact, and not necessarily based on a written contract. A worker retained as a part-time locum can see their legal relationship morph over time from self-employment to employment. Accordingly, it is not a bad idea to consider on a regular basis the existing suitability of your service agreements.
Finally consider the myriad on-going regulation affecting employees and other workers from health and safety to data protection laws. It may be in addition to the service agreement a comprehensive staff handover will be needed and regularly updated.
For more information please Spencer Laymond at Curwens LLP on (020) 8363 4444 or email at spencer.laymond@curwens.co.uk.
