(Solution) CIPD 5HR02 main types of contractual terms in contracts (AC 4.2)


Express terms

Express terms are considered crucial in an employment contract and hence they are put in writing (Suff, 2022). For example, during hiring process, BMG must make sure that key terms and conditions such as basic salary, wage and working hours are put in writing. It is also to consider Equality Act 2010, Equal pay law, Working Time Regulations 1998 and National Minimum Wage when drafting express terms.

Implied terms

Implied terms are not put in writing because they are too obvious or known to both parties (Acas, 2023). For example, BMG do not have to write that the employer has a duty of care for its workers. Also a term like do not steal from the employer do not need to be written.

Custom and practice

Custom and practice occur over a period of time and become certain, reasonable and know in the business (Acas, 2023). For example, a gifting employees a Christmas gift every year for a period of 10 years or more becomes a custom and practice. But this is not written in the contract.

Restrictive covenant

These terms restricts an employee to take some actions like contacting employer’s customers once they leave the workplace to prevent competition (Acas, 2023).

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