Does the Unfair Contract Terms Act 1977 Apply to Contracts of Employment
The Unfair Contract Terms Act 1977 is a piece of legislation designed to protect individuals and consumers from unfair clauses in contracts. It aims to prevent businesses from taking advantage of their customers by including terms in contracts that are one-sided and overly advantageous to the business. However, does this act apply to contracts of employment?
The answer is yes, the Unfair Contract Terms Act 1977 does apply to contracts of employment. This means that employers cannot include clauses in employment contracts that are deemed unfair and unreasonable. The act protects employees from being subjected to clauses that are contrary to their interests and give employers an unfair advantage.
There are several areas of employment law where the Unfair Contract Terms Act 1977 applies. These include clauses that limit an employee`s rights to compensation or redundancy pay and those that restrict an employee`s right to leave a job. Other examples of clauses that are covered by this act include clauses that limit an employee`s ability to bring a claim against their employer or that limit an employee`s right to take their employer to court.
The act also covers clauses that are considered to be unreasonably long or complex, making them difficult for the average person to understand. This type of clause is often used by businesses in contracts, including employment contracts, to make it easier for them to avoid liability in the event of a dispute.
Employers need to be aware of the Unfair Contract Terms Act 1977 and ensure that their employment contracts comply with its provisions. Failure to do so could result in legal action being taken against them by their employees.
In conclusion, the Unfair Contract Terms Act 1977 applies to contracts of employment. This means that employers must ensure that their employment contracts do not contain clauses that are deemed to be unfair and unreasonable. Failure to do so could result in legal action being taken against them. Therefore, it is essential for employers to seek legal advice before drafting an employment contract to ensure that it complies with the act`s provisions.
