How to Write an Employment Contract
Draft an employment contract by including the employee's details, job title, start date, salary, working hours, holiday entitlement, notice period, and any restrictive covenants. Under UK law, a written statement of particulars must be provided on or before the first day of employment.
Last updated: February 2025
Step-by-Step Guide
Gather employee and role details
Collect the employee's full legal name, address, job title, reporting line, and start date.
- •Confirm the legal entity name that will appear as employer.
- •Check right-to-work documents before finalising.
Set out pay and benefits
State the gross salary, pay frequency, pension auto-enrolment details, and any additional benefits such as bonuses or private healthcare.
- •Ensure salary meets the current National Minimum Wage.
- •Specify whether bonus is discretionary or contractual.
Define working hours and holiday
Include weekly hours, any overtime expectations, and the statutory minimum 28 days paid holiday (which can include bank holidays).
- •State how holiday accrues in the first year.
Add notice and termination provisions
Set contractual notice periods for both sides, which must meet the statutory minimum of one week per year of service up to 12 weeks.
- •Include a probationary period clause if desired.
Include restrictive covenants and confidentiality
Add non-compete, non-solicitation, and confidentiality clauses if needed, keeping them reasonable in scope and duration.
- •Overly broad covenants are unenforceable in UK courts.
- •Six to twelve months is typically considered reasonable.
Legal Requirements
Under the Employment Rights Act 1996 (as amended), employers must provide a written statement of employment particulars on or before the employee's first day of work. This must include pay, hours, holiday, notice periods, job title, and place of work.
Common Mistakes
Template / Example
When to Get a Solicitor
Get a solicitor if the role involves sensitive IP, significant restrictive covenants, or if the employee is a senior hire with complex remuneration such as share options or deferred bonuses.
FAQ
Is a verbal employment contract legally binding in the UK?
Yes, verbal contracts are legally binding, but employers are still required to provide a written statement of particulars from day one under the Employment Rights Act 1996.
Can I use the same employment contract template for all employees?
A base template works, but you must tailor key terms such as salary, hours, job title, and any role-specific clauses for each employee.
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