Writing a UK employment contract: a plain-English guide
Hiring someone in the UK comes with a legal duty: you must give every employee a written statement of the main terms of their employment, on or before their first day. A well-drafted employment contract is the simplest way to meet that duty — and to avoid disputes down the line.
This guide explains what to include and the decisions you’ll need to make. It is general information, not legal advice.
What the law requires
Under the Employment Rights Act 1996, the written statement must cover the essentials: the names of the parties, the start date, pay, hours, holiday, place of work, job title and notice periods. Newer rules require most of these to be given in a single document from day one.
The terms to get right
- Permanent or fixed-term? A fixed-term contract ends on a set date unless renewed; a permanent (“indefinite”) contract continues until either side gives notice. Choose deliberately — it changes the wording throughout.
- Probationary period. Common for new hires, with a shorter notice period during probation. Optional, but useful.
- Notice period. The statutory minimum is one week after a month’s service, rising with tenure. Many employers set a longer contractual notice.
- Restrictive covenants. A post-termination non-compete is only enforceable if it is no wider than reasonably necessary. Keep the duration and geographic scope modest.
Common mistakes
- Relying on a verbal agreement — the written statement is a legal requirement.
- Copying a contract from another country or jurisdiction. UK terms differ from US ones; use a UK-specific document.
- Over-broad non-compete clauses that a court will simply refuse to enforce.
Build your contract
Ready to create one? Our Employment Contract template walks you through each decision and assembles the document live as you answer — then exports an editable Word file and a PDF.