UK Employment Contract

What is an employment contract?

An employment contract is a written agreement between an employer and an employee that sets out the terms of the working relationship: the position, duties, pay, working hours, start date, and how the employment can end.

Putting the terms in writing protects both sides. The employee knows exactly what they are agreeing to, and the employer has a clear record of what was offered and accepted.

When do you need one?

Any time someone starts working for you, a written contract is the safest way to set expectations. Common situations include:

• Hiring your first employee for a small business
• Bringing a freelancer or contractor onto the payroll as an employee
• Formalizing a verbal arrangement that has been running informally
• Hiring part-time, seasonal, or fixed-term staff
• Updating outdated terms after a promotion or a change in role

Types of employment contracts

The right contract depends on how long the employment lasts and how the work is scheduled. We tailor the document to the arrangement you describe, including:

• Permanent full-time: an open-ended role with standard weekly hours
• Part-time: reduced or flexible hours with the same core protections
• Fixed-term: employment that ends on a set date or when a project finishes
• Probationary terms: an initial trial period with its own notice rules
• Casual or zero-hours style arrangements where hours vary week to week

What to include

A complete employment contract leaves no room for doubt about the terms of the job. Make sure yours covers:

• Full names and addresses of the employer and the employee
• Job title, main duties, and who the employee reports to
• Salary or hourly rate, pay frequency, and any bonus or overtime terms
• Working hours, work location, and any remote or hybrid arrangements
• Start date, and the end date for fixed-term roles
• Holiday, sick leave, and other benefits
• Notice periods and the grounds for termination
• Confidentiality and, where appropriate, restrictions after leaving

Common mistakes to avoid

• Relying on a verbal agreement with nothing in writing
• Copying a template written for a different country's employment law
• Leaving pay, hours, or the start date vague
• Forgetting notice periods, so neither side knows how to end the contract cleanly
• Skipping confidentiality terms for roles with access to sensitive information
• Never updating the contract when the role or pay changes