TS-FS-09
Trust & Stewardship
Financial Stewardship
CORE
Compliance
v2.9.7
Adequate employment contracts
Evaluating whether the organization provides comprehensive, legally compliant employment contracts to all staff is the primary focus. Adequate employment contracts are essential for establishing clear expectations, protecting both employer and employee rights, and ensuring compliance with employment law. In Islamic jurisprudence, employment is governed by Ijarah (leasing of services), which requires transparent terms to prevent Gharar (uncertainty). Fulfilling these documented agreements upholds the core principle of Adl (justice) and honors the sacred duty to fulfill contractual obligations.
Assessment Questions
- Are ERA 1996 s.1 written particulars provided on or before day one for all employees, and written terms for workers?
- Do contracts state pay intervals, authorise deductions lawfully, and is NMW/NLW compliance monitored?
- Do contracts clearly state holiday entitlement, working time limits, and (if used) an opt-out process with record-keeping?
- Are contracts accessible (plain English, large print, translations) and is reasonable adjustment support signposted?
- Where roles involve children/adults at risk, do contracts reference safeguarding duties and DBS requirements?
- Is there a formal process for status determination (employee vs worker) and template selection for every starter?
Evidence Requirements
- A selection of anonymized employment contracts for various roles (employee, worker, fixed-term).
- Status determination records (e.g., checklist/rationale) for a sample of starters.
- Right-to-work check process evidence (anonymised logs) and Pension auto-enrolment communications.
- Payroll compliance samples (anonymised itemised payslips showing deductions).
- Privacy notice delivery proof (onboarding checklist tick + copy of staff privacy notice).
- Template control evidence (version-controlled register + date of last legal review).
- Evidence of legal review of contract templates (e.g., communication with legal counsel).
Scoring Guidelines
| Level | Rating | Description |
|---|---|---|
| 5 | 5/5 | 100% day-one issuance, 100% completeness, annual legal review, staff understanding ≥95%, exceptions closed <30 days. |
| 4 | 4/5 | ≥98% day-one issuance, ≥95% completeness, biennial legal review, exceptions closed <60 days. |
| 3 | 3/5 | ≥95% issuance within 7 days, basic completeness, documented status determinations. |
| 2 | 2/5 | <90% issuance, major omissions, inconsistent status determination. |
| 1 | 1/5 | No formal contracts or widespread non-compliance. |
Discussion (1)
Administrator
2026-03-07 11:07:48.937616
📋 **Version updated: 1.0.0 → 2.9.7** **Changes:** Updated islamic_references from mizan-297.json
Sign in to post a comment.