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UK Employment Law Documents: Contracts, Policies & HR Templates (2026)

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Written by Brad Askew Solicitor (non-practising)
Brad is on the roll of solicitors of England & Wales but does not hold a practising certificate and does not provide legal advice.
Updated June 2026 · England & Wales
Running a business in the UK means carrying real legal weight, whether you employ two people or two hundred. Getting employment law documents right is not just about avoiding tribunal claims, though that matters. It is about building a workplace where people know where they stand and where you, as the business owner or manager, can make decisions with confidence. This hub gathers the documents and guidance employers most often need: the differences between employees, workers and contractors, the contracts and written statements you must put in place, the HR policies that should sit behind them, and the process to follow when an employment relationship ends. The rules are changing faster than usual right now — the Employment Rights Act 2025 is landing in phases through 2026 and 2027 — so treat this as a starting point and always check GOV.UK for the current position before you act.

At a glance

  • Written statement of particulars: the principal statement is a day-one right for employees and workers (Employment Rights Act 1996, s.1); the wider statement can follow within two months.
  • Unfair dismissal qualifying period: still 2 years as at July 2026. Falls to 6 months under the Employment Rights Act 2025, but only for dismissals from 1 January 2027 — check GOV.UK before relying on either figure.
  • Statutory minimum notice: 1 week after 1 month's service, rising by 1 week per full year worked, up to 12 weeks after 12 years (ERA 1996, s.86).
  • Statutory redundancy pay: age-banded formula (0.5–1.5 weeks' pay per year of service, capped at 20 years), subject to a weekly pay cap of £751 (and a maximum payment of £22,530) from 6 April 2026 — this cap is uprated every April, so check the current figure and calculator on GOV.UK.
  • Collective redundancy consultation: triggered at 20+ proposed redundancies at one establishment within 90 days (TULRCA 1992, s.188); minimum 30 days' consultation for 20–99 roles, 45 days for 100+. The protective award for getting this wrong doubled to a maximum of 180 days' pay per employee from 6 April 2026.
  • National Minimum/Living Wage and Statutory Sick Pay rates: both change every April. From 6 April 2026, SSP is payable from the first day of absence with no lower earnings limit — always verify current rates before running payroll.
  • Day-one rights added 6 April 2026: paternity leave and unpaid parental leave, following the Employment Rights Act 2025.
  • Tribunal time limits: still 3 months (less a day) for most claims as at July 2026, extending to 6 months for claims where the underlying act occurs on or after 1 October 2026.
  • This is a moving picture. The Employment Rights Act 2025 is being introduced in stages through 2026 and 2027, and the government has already revised its own timetable more than once. Don't assume a reform is in force just because you've read about it — check the date.

What this hub covers

Employment law in the UK governs the relationship between people who do work and the organisations that pay for it. It draws on the Employment Rights Act 1996, the Equality Act 2010, the Working Time Regulations 1998, the National Minimum Wage Act 1998, the Trade Union and Labour Relations (Consolidation) Act 1992, the Employment Rights Act 2025, and a steady stream of tribunal and appellate case law. On top of statute, the Acas Code of Practice on Disciplinary and Grievance Procedures shapes what tribunals expect from employers in practice — an unreasonable failure to follow it can increase a tribunal award by up to 25%.

This hub links through to the individual contracts, policies, letters and forms you're likely to need at each stage of the employment relationship: hiring, day-to-day HR, discipline and grievance, redundancy, and termination. Each linked page goes into that document's specific requirements in more depth than a hub page can.

Working out who you're hiring

Before drafting any paperwork, decide whether the person is an employee, a worker or a self-employed contractor. Look at how much control you have over their work, whether they can send a substitute, and how integrated they are into your business — labels in the contract do not settle the question if the reality on the ground says something different.

| Status | Core rights | Unfair dismissal / redundancy pay | Typical document | |---|---|---|---| | Employee | Full statutory rights: minimum wage, paid holiday, sick pay, family leave, protection from unfair dismissal after the qualifying period | Yes, subject to qualifying service | Standard employment contract | | Worker | National Minimum Wage, paid holiday, rest breaks, whistleblowing protection | No | Casual worker contract | | Self-employed contractor | Very limited statutory protections; governed mainly by the contract itself | No | Self-employed contract |

Getting this wrong is expensive — see the FAQs below on worker-status misclassification. Start with our guide on self-employed contracts for where the line usually falls.

Contracts of employment

The written statement of particulars is the legal minimum; most employers use a fuller contract that also sets out benefits, restrictive covenants and disciplinary process by reference. The right form depends on the role:

Worked example: what a new starter's paperwork should cover

A small business hires a full-time customer service assistant starting on a Monday. On or before that first day, the principal statement (ERA 1996, s.1) must already set out pay, hours, holiday entitlement, job title, place of work and notice periods. The wider particulars — pension arrangements, any collective agreements, training entitlement — can follow within two months, but most employers fold everything into a single standard employment contract signed on day one, avoiding the two-stage process and the risk of forgetting the follow-up document.

HR policies and workplace documents

Policies give staff clear expectations and give you a consistent, defensible framework when problems arise. Commonly needed policies include:

If you employ five or more people, you must additionally prepare a written health and safety policy statement and bring it to employees' attention — a duty under section 2(3) of the Health and Safety at Work etc. Act 1974, with the exemption for smaller employers set out in the Employers' Health and Safety Policy Statements (Exception) Regulations 1975. See HSE's guidance on preparing a health and safety policy for what it should cover.

Family leave and time off

Discipline, grievance and dismissal

Whatever the reason for action — conduct, capability or something else — the process matters as much as the reason. Investigate properly, hold a meeting where the employee can respond, allow them to be accompanied, and give a right of appeal, following the Acas Code of Practice on Disciplinary and Grievance Procedures at every stage. A tribunal can increase — or reduce — an award by up to 25% depending on whether the employer or the employee unreasonably failed to follow the Code.

Redundancy

A dismissal is only a genuine redundancy under the Employment Rights Act 1996 where the employer has stopped, or intends to stop, the business or the role at that location, or needs fewer employees for work of a particular kind — calling a dismissal "redundancy" for another reason, such as performance, does not make it one.

Calculating statutory redundancy pay

Statutory redundancy pay is worked out by age band, using complete years of service up to a maximum of 20 years:

| Age during that year of service | Weeks' pay per year of service | |---|---| | Under 22 | 0.5 | | 22 to 40 | 1.0 | | 41 and over | 1.5 |

A week's pay is capped — from 6 April 2026 the cap is £751, giving a maximum possible statutory redundancy payment of £22,530. Both figures are uprated every April, so always confirm the current cap and run the calculation on GOV.UK's redundancy pay guidance rather than relying on a figure from a previous tax year.

Collective consultation

If you're running a collective redundancy (proposing to dismiss 20 or more employees at one establishment within a 90-day period), section 188 of the Trade Union and Labour Relations (Consolidation) Act 1992 requires formal consultation with recognised trade union or elected employee representatives, on top of individual consultation with each affected employee. The minimum consultation period before the first dismissal takes effect is 30 days for 20 to 99 proposed redundancies, rising to 45 days for 100 or more. Get this process right first: the protective award a tribunal can order for a consultation failure doubled to a maximum of 180 days' pay per affected employee from 6 April 2026, under the Employment Rights Act 2025.

Ending the employment relationship

Not every exit is a dismissal. Where both sides want a clean, negotiated break — often alongside a dispute or a settlement discussion — a settlement agreement is the usual route, and it is only legally binding once the employee has taken independent legal advice on its terms and effect.

What's changing: the Employment Rights Act 2025

The Employment Rights Act 2025 received Royal Assent on 18 December 2025 and is being brought in over 2026 and 2027 rather than in one go, through a series of commencement regulations. As at July 2026, this is the state of play:

| Change | Status as at July 2026 | |---|---| | Statutory Sick Pay from day one, no lower earnings limit | In force from 6 April 2026 | | Paternity leave and unpaid parental leave as day-one rights | In force from 6 April 2026 | | Collective redundancy protective award doubled to 180 days' pay | In force from 6 April 2026 | | Whistleblowing protection extended to sexual harassment disclosures | In force from 6 April 2026 | | Fair Work Agency established (single enforcement body) | In force from 7 April 2026 | | Employment tribunal time limits extended from 3 to 6 months | Not yet in force — applies to acts/dismissals from 1 October 2026 | | Unfair dismissal qualifying period reduced to 6 months | Not yet in force — expected for dismissals from 1 January 2027 | | Removal of the unfair dismissal compensation cap | Not yet in force — expected from 1 January 2027 | | New "fire and rehire" restrictions (restricted contract variations) | Not yet in force — expected from 1 January 2027 | | Right to guaranteed hours for zero/low-hours workers | Not yet in force — expected "sometime in 2027," date to be confirmed by regulations |

The government's own timetable has moved more than once, so before you change a contract, policy or process based on a headline about "new employment rights," confirm the commencement date on the Plan to Make Work Pay and Employment Rights Act timeline update or directly on legislation.gov.uk.

Getting help

If you're setting up contracts and policies for the first time, or facing a specific decision — a disciplinary process, a redundancy exercise, a settlement negotiation — a short call with an experienced legal adviser can help you think through the options for your situation before you commit to a course of action.

This hub provides general information about UK employment law for employers in England and Wales. It is not legal advice and is not a substitute for advice tailored to your specific circumstances. The law described was accurate as at July 2026 and is changing rapidly under the Employment Rights Act 2025 — always check GOV.UK and legislation.gov.uk for the current position before you act.

Last reviewed: July 2026 by a non-practising solicitor · Next review due: October 2026 or on legislative change.

Common questions

Q What is the difference between an employee, a worker and a contractor?
An employee works under a contract of employment and has the full range of statutory rights, including protection from unfair dismissal after the qualifying period and entitlement to statutory redundancy pay. A worker has a narrower set of rights covering things like National Minimum Wage, paid holiday and rest breaks, but not unfair dismissal or redundancy pay. A genuine self-employed contractor runs their own business and has very limited employment protections. The real working arrangement — control, substitution, integration into the business — matters more than the label used in the contract or what either side calls it.
Q Do I have to give new staff a written contract?
Employees and workers must be given a 'principal statement' of the main terms of employment on or before their first day of work — this is a day-one right under section 1 of the Employment Rights Act 1996. The wider written statement, covering further particulars such as pensions, collective agreements and training entitlement, can follow within two months of the start date. A single, fuller written contract combining both is not strictly mandatory but is strongly advisable, since it reduces disputes about what was actually agreed.
Q When does an employee gain protection from unfair dismissal?
As at July 2026, an employee generally still needs two years of continuous service to bring an ordinary unfair dismissal claim. That is changing under the Employment Rights Act 2025: the qualifying period is due to fall to six months, but only for dismissals taking place on or after 1 January 2027 — it has not changed yet. Separately, some dismissals are automatically unfair from day one regardless of length of service, including dismissals connected to pregnancy or maternity, whistleblowing, trade union membership or activities, asserting a statutory right, or discrimination on a protected characteristic. Check GOV.UK for the current qualifying period before making any dismissal decision.
Q What notice period must I give when dismissing someone?
Statutory minimum notice under section 86 of the Employment Rights Act 1996 is one week after one month of service, rising by one week for each full year worked, up to twelve weeks after twelve years. The employment contract may provide for longer notice, and if so that contractual period applies instead. Notice can sometimes be given as payment in lieu where the contract allows it. Gross misconduct may justify dismissal without notice, but the investigation and process still need to be fair and follow the Acas Code of Practice on Disciplinary and Grievance Procedures.
Q Which HR policies should every employer have?
At a minimum, most employers should have written disciplinary and grievance policies, and a written health and safety policy statement if they employ five or more people (a duty under section 2(3) of the Health and Safety at Work etc. Act 1974, with the five-employee exemption set out in the Employers' Health and Safety Policy Statements (Exception) Regulations 1975). Equal opportunities, anti-bullying and harassment, data protection and family leave policies are also widely expected and help demonstrate reasonable steps were taken if a claim arises. Depending on size and sector, you may also want whistleblowing, social media, and drug and alcohol policies. Clear policies set expectations for staff and give you a fair, consistent framework when problems arise.
Q What is actually changing under the Employment Rights Act 2025?
The Employment Rights Act 2025 received Royal Assent on 18 December 2025, but it is being introduced in stages, not all at once, and the government has already revised its own timetable more than once. Measures already in force include, from 6 April 2026: Statutory Sick Pay payable from the first day of absence with no lower earnings limit, paternity leave and unpaid parental leave becoming day-one rights, the collective redundancy protective award doubling to a maximum of 180 days' pay, and whistleblowing protection extending to sexual harassment disclosures. The Fair Work Agency, a new single enforcement body, was established on 7 April 2026. Other headline changes are not yet law: employment tribunal time limits extending from 3 to 6 months for acts occurring on or after 1 October 2026, the unfair dismissal qualifying period falling to six months, removal of the unfair dismissal compensation cap, and new restrictions on 'fire and rehire' dismissals all start from 1 January 2027, and the right to guaranteed hours for zero-hours and low-hours workers is not expected before sometime in 2027. Always check GOV.UK for what is actually in force before relying on any date.
Q Can I use zero-hours contracts in my business?
Zero-hours contracts remain lawful as at July 2026, and exclusivity clauses stopping someone working elsewhere are unenforceable. People on zero-hours arrangements are usually workers rather than employees, so they are entitled to National Minimum Wage, paid holiday and rest breaks in the normal way. This is an area of active reform: the Employment Rights Act 2025 is expected to introduce a right to guaranteed hours based on hours actually worked over a reference period (likely 12 weeks, subject to regulations), reasonable notice of shifts, and compensation for cancelled or curtailed shifts, but the government has only committed to 'sometime in 2027' for commencement. A related shift-notice and cancellation-payment right is expected from October 2026. Check GOV.UK for the current position before relying heavily on this model.
Q What happens if I get worker status wrong?
Misclassifying someone as self-employed when they are actually a worker or employee can be costly. You may face claims for unpaid holiday, unpaid minimum wage, unlawful deductions and, for employees, unfair dismissal and redundancy pay. HMRC may also pursue unpaid tax and National Insurance, and from 7 April 2026 enforcement of rights such as holiday pay and Statutory Sick Pay sits with the new Fair Work Agency. Tribunals look at the real substance of the relationship, so documenting the arrangement properly and reviewing it as roles evolve is time well spent.
Q Do I have to consult before making people redundant?
You should always consult individually with anyone whose role may be redundant, regardless of numbers. If you are proposing 20 or more redundancies at one establishment within a 90-day period, section 188 of the Trade Union and Labour Relations (Consolidation) Act 1992 requires formal collective consultation with recognised trade union representatives or elected employee representatives, in addition to individual consultation. The minimum consultation period before the first dismissal takes effect is 30 days for 20 to 99 proposed redundancies and 45 days for 100 or more. Getting the consultation process wrong is expensive: the maximum protective award a tribunal can make for a consultation failure doubled to 180 days' pay per affected employee from 6 April 2026.
Q Is the three-month time limit for tribunal claims changing?
It is due to, but as at July 2026 it has not changed yet. Most employment tribunal claims — including unfair dismissal, discrimination, whistleblowing, TUPE and Working Time Regulations claims — currently must generally be brought within three months (less one day) of the relevant act, detriment or dismissal, subject to early conciliation extending that window. Under the Employment Rights Act 2025, this time limit is due to extend to six months, but only for claims where the underlying act, detriment or termination occurs on or after 1 October 2026 — claims arising entirely before that date stay on the current three-month limit. Breach of contract claims in the tribunal keep the three-month limit regardless. Check GOV.UK and Acas guidance for the position that applies to your specific dates.

Sources

This guide is based on primary UK law and official guidance.

Brad Askew, Solicitor (non-practising)

Written & reviewed by

Brad Askew Solicitor (non-practising)

Brad is on the roll of solicitors of England & Wales but does not hold a practising certificate and does not provide legal advice. LegalDocuments.co.uk is not a law firm and does not provide regulated legal advice.

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Legal disclaimer
This article is for general information only. It is a tool to help you find your way — not legal advice, and not a substitute for speaking to a qualified adviser about your situation.