Employment Contracts

What Must Be in a UK Employment Contract?

A detailed breakdown of every clause your employment contract needs — from the legally required to the commercially sensible. Stay compliant and protect your business.

Last updated: February 2025

Statutory Particulars You Must Include

The Employment Rights Act 1996 (as amended) sets out a list of particulars that must be included in the written statement provided to employees. Some must be given on day one, while others can follow within two months.

  • Day-one particulars: employer name, start date, job title, pay and intervals, hours, holiday entitlement
  • Day-one particulars also include: sick pay, notice periods, work location, and any probationary period details
  • Within two months: pension arrangements, collective agreements, training requirements
  • Right to work documentation should be verified before the start date, not included in the contract itself

Recommended Additional Clauses

While not legally required, these clauses protect your business and set clear expectations. Including them from the outset avoids difficult renegotiations later and demonstrates professionalism to new hires.

  • Intellectual property assignment — essential if employees create content, code, or designs
  • Data protection and GDPR obligations for handling company and client data
  • Social media and acceptable use policies for company equipment
  • Disciplinary and grievance procedures, referencing your company handbook

Clauses to Be Careful With

Certain contract clauses are frequently challenged at employment tribunals. Poorly drafted restrictive covenants, unfair deduction clauses, and overly broad confidentiality terms can all be struck down, leaving you with less protection than no clause at all.

  • Non-compete clauses must be proportionate — typically 3 to 6 months maximum for most roles
  • Deduction from wages clauses must comply with section 13 of the Employment Rights Act 1996
  • Exclusivity clauses in zero-hours contracts are unenforceable under the Small Business, Enterprise and Employment Act 2015

Key Takeaways

  • UK law requires specific particulars to be provided on day one — not within the first month as many employers still believe.
  • Clauses protecting IP, data, and confidentiality are not statutory but are essential for most businesses.
  • Overly broad restrictive covenants are routinely struck out by tribunals, so keep them reasonable and specific.

Frequently Asked Questions

What is the difference between a written statement and an employment contract?

A written statement of particulars is the minimum legal requirement and sets out key terms. An employment contract is a broader document that can include additional clauses such as restrictive covenants, IP assignment, and disciplinary procedures. The written statement can form part of the contract.

Do I need to include pension details in the contract?

You must include information about pension arrangements within two months of the start date. Under auto-enrolment rules, most employers must enrol eligible employees into a workplace pension, so this is typically included in the contract or an accompanying letter.

Can I include a clause that prevents employees from working elsewhere?

For full-time employees, you can include a clause requiring permission to take secondary employment, but it must be reasonable. For zero-hours workers, exclusivity clauses are banned under the Small Business, Enterprise and Employment Act 2015.

Related Guides

Employment Contract Guide for UK Small Businesses (2026)

Zero Hours Contract: Template & Legal Guide

Probation Period Clauses: What's Legal in 2026?

Termination Clauses: How to End Employment Legally

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This is guidance for UK businesses, not legal advice. For complex legal matters, consult a qualified solicitor.

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