Employment Contract Template for Consultancy Businesses (UK 2025)
Last updated: February 2025
Why Consultancy Businesses Need a Employment Contract
Consultancy firms deploy employees to client sites, often for extended periods, creating complex employment dynamics around location, supervision, and dual loyalties. Contracts must address client secondment arrangements, billable hours expectations, extensive travel requirements, and the critical risk of clients poaching consultants directly. The knowledge-intensive nature of consultancy means confidentiality clauses must cover both the firm's proprietary methodologies and client-sensitive information accessed during engagements.
Key Clauses for Consultancy
- Client site secondment terms and travel obligations
- Non-solicitation clause preventing clients from direct hiring
- Utilisation and billable hours performance expectations
- Professional development and CPD support provisions
Common Mistakes
- Not including a client non-poaching clause allowing the firm to charge a transfer fee if a client hires the consultant
- Failing to specify who pays for professional certifications, memberships, and ongoing CPD
Template Sections
- Client secondment and working location arrangements
- Utilisation targets and performance metrics
- Professional membership and CPD support clause
FAQ
How can I stop clients from hiring my consultants directly?
Include a client non-solicitation clause in the employment contract and a corresponding clause in your client services agreement requiring a transfer fee (typically 20-30% of annual salary) if the client hires the consultant within 12 months. Both clauses working together provide the strongest protection and are routinely upheld by UK courts.
Should consultancy employment contracts set billable hour targets?
Many consultancy firms include utilisation targets, typically requiring 70-85% of working hours to be billable. These should be framed as performance expectations rather than guaranteed minimums to avoid claims if targets are not met due to bench time between projects. Link them to performance reviews rather than disciplinary procedures.
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Get Started FreeThis is guidance for UK businesses, not legal advice. Templates are illustrative. Consult a solicitor for complex matters.
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