Employment Contract Template for SaaS Businesses (UK 2025)
Last updated: February 2025
Why SaaS Businesses Need a Employment Contract
SaaS companies need bespoke employment contracts because intellectual property ownership is central to the business model. Employees routinely create proprietary code, algorithms, and data infrastructure, and without clear contractual IP assignment, ownership disputes can threaten the entire product. Remote and hybrid working arrangements, stock option schemes, and data security obligations also require specific contractual provisions that generic templates miss.
Key Clauses for SaaS
- IP assignment for all code, inventions, and product designs
- Non-compete clause covering SaaS competitors
- Remote and hybrid working provisions with equipment policy
- EMI share option scheme references and vesting schedules
Common Mistakes
- Not specifying that IP created outside working hours using company tools belongs to the company
- Omitting data protection obligations when employees access customer databases
Template Sections
- IP assignment and invention disclosure clause
- Confidentiality and trade secrets schedule
- Flexible working location and equipment policy
FAQ
Is an employment contract legally required for SaaS employees in the UK?
Yes. Under the Employment Rights Act 1996, every employee must receive a written statement of employment particulars from day one. SaaS businesses face additional risk without contracts because intellectual property ownership defaults to the creator without explicit assignment clauses, potentially leaving your core product IP in dispute.
What IP clauses should a SaaS employment contract include?
Your contract should include a full assignment of IP rights for all work created during employment, a duty to disclose inventions, moral rights waivers, and provisions covering work created using company equipment outside normal hours. Also address open-source contribution policies and ensure the assignment covers future IP developed from work started during employment.
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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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