Employment Contract Template for Your First Hire (UK 2025)

When You Need This Contract

Making your first hire is a pivotal moment for any growing business. As a first-time employer, you are legally required to provide a written statement of employment particulars from the employee's first day under the Employment Rights Act 1996. Getting this wrong can expose you to tribunal claims before you have even established your employment practices. This template covers everything a first-time employer needs, from the statutory minimum terms to practical provisions that protect your new business.

Key Clauses

• Written statement of employment particulars covering all statutory requirements
• Probationary period with clear review and extension provisions
• Notice period for both parties appropriate to a new role
• Holiday entitlement calculation and booking process
• Grievance and disciplinary procedures as required by ACAS Code

What to Watch Out For

• Using a generic template downloaded from the internet without customising it for your specific business and role
• Not including a probationary period, making it harder to end the relationship if the hire is not working out
• Forgetting to set up employer's liability insurance, which is a legal requirement before your first employee starts

Sample Clauses

• Sample probation clause with 3-month review: 'During the first 3 months of employment (the Probationary Period), your performance and suitability will be assessed. The Company may extend the Probationary Period by up to 3 months by written notice.'
• Sample notice clause: 'During the Probationary Period, either party may terminate employment by giving 1 week's written notice. After successful completion of the Probationary Period, the notice period shall be [X] months.'