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Employment Contract UK: What to Include (2026)

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Part ofUK Employment Law Guide for Employers (2025)

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
Taking on a new member of staff is a big moment for any business, and the paperwork that sits behind that hire matters more than people realise. A written employment contract is the document that sets expectations on both sides, from pay and hours through to what happens if things go wrong. Getting it right at the start saves a great deal of difficulty later, particularly if a disagreement ever reaches a tribunal. This guide walks through what a standard employment contract in England and Wales typically covers, what the law requires you to put in writing, and the practical choices you'll need to make as an employer. It's written for small business owners, HR managers, and anyone setting up employment paperwork for the first time.

What this document is

An employment contract is the legal agreement that governs the working relationship between an employer and someone they hire as an employee. It can be partly written and partly verbal, but the written portion is where most of the detail sits, and it's the part that matters if a dispute ever arises.

Under the Employment Rights Act 1996, employees and workers are entitled to a written statement of their main particulars of employment on or before their first day of work. This rule was updated in April 2020, so the older eight-week window no longer applies.

The statement must cover things like pay, hours, holiday, job location, and notice periods. Most employers choose to go further than the statutory minimum and issue a full written contract that also addresses confidentiality, sickness, disciplinary procedures, and what happens when someone leaves.

A well-drafted contract isn't just a compliance exercise. It sets the tone of the relationship and gives both sides something to refer back to when questions come up.

How to use this document

  1. Decide the employment status. Before drafting anything, be clear on whether you're hiring an employee, a worker, or a self-employed contractor. The three categories carry very different rights and tax treatments, and getting this wrong can create liabilities further down the line. Employees get the fullest set of protections, including unfair dismissal rights after two years.
  2. Gather the core particulars. Pull together the facts you'll need to include: start date, job title, salary, working hours, holiday entitlement, place of work, and any probation period. If the role involves pensions auto-enrolment, variable hours, or benefits like private healthcare, note those down too. Having this information ready before you start drafting keeps the process quick and consistent.
  3. Draft the contract clauses. Work through each section in turn, covering duties, remuneration, notice, confidentiality, and termination. Consider whether you need post-termination restrictions such as non-compete or non-solicitation clauses, bearing in mind that these must be reasonable in scope and duration to be enforceable. Use plain English wherever you can.
  4. Align with your wider policies. An employment contract sits alongside your staff handbook, disciplinary and grievance procedures, and any equality or data protection policies. Make sure the contract refers to these correctly and that nothing contradicts what's in the handbook. Decide which policies are contractual and which are not, as this affects how easily you can change them later.
  5. Issue and sign before day one. Give the contract to the new starter before or on their first day, allow them time to read it, and arrange for both parties to sign. Keep a signed copy on file, either on paper or electronically. If terms change later, you'll generally need the employee's agreement and a written variation.

Common questions

If you're dealing with this kind of situation, speak to an experienced legal adviser who can walk you through it — from £89.

Common questions

Q Do I legally have to give my employees a written contract?
You must provide a written statement of the main particulars of employment on or before the first day of work. This applies to employees and workers alike. The statement doesn't have to be a single document, but in practice most employers combine it with a fuller written contract. Failing to provide one can result in a tribunal awarding additional compensation if another claim succeeds.
Q Can I include a probation period, and how long should it be?
Yes, probation periods are common and perfectly lawful. Three to six months is typical, with an option to extend if needed. During probation you can often use a shorter notice period. Remember that statutory rights such as minimum wage, holiday, and protection from discrimination apply from day one, regardless of whether someone is on probation.
Q Are restrictive covenants like non-compete clauses enforceable?
They can be, but only if they go no further than necessary to protect a legitimate business interest such as client relationships or confidential information. Courts look closely at the length, geographic scope, and activities restricted. Overly broad restrictions are often struck down entirely. Tailoring them to the specific role and seniority of the employee gives the best chance of enforceability.
Q What happens if I want to change the terms of the contract later?
Changes to contractual terms generally require the employee's consent, recorded in writing. Imposing changes unilaterally can lead to claims for breach of contract, constructive dismissal, or unlawful deductions from wages. Some contracts include flexibility clauses allowing minor variations, but these are interpreted narrowly. For significant changes, a proper consultation process is usually the safest route.
Q Does the same contract work for part-time and full-time staff?
The same template can be adapted, but you'll need to adjust hours, salary, and holiday pro-rata for part-time employees. Part-time workers are legally entitled to no less favourable treatment than full-time equivalents on pay, benefits, and conditions, unless the difference can be objectively justified. Make sure your contract reflects this principle clearly.
Q What notice period should I include?
Statutory minimum notice is one week after a month of service, rising to one week per complete year worked up to a maximum of twelve weeks. Employers often specify longer contractual notice, particularly for senior roles. Whatever you choose, the contract should state the notice required from both sides, and it can be longer from the employer than from the employee.
Q Do I need separate contracts for directors who are also employees?
Directors who work in the business as well as sitting on the board are often both office-holders and employees. A service agreement is usually used for this combined role, covering board duties, executive responsibilities, and employment terms in one document. These tend to be more detailed than standard contracts and often include specific provisions on confidentiality, intellectual property, and garden leave.
If you're dealing with this kind of situation, speak to an experienced legal adviser who can walk you through it — from £89.

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.