How to Write an Employment Contract UK: A Plain English Guide for Small Employers

An employment contract is the foundation of the employment relationship. Get it right and it protects you and the employee. Get it wrong - or skip it entirely - and you are exposed every time a dispute arises. This guide tells you exactly what a UK employment contract must include, what it should include and what to avoid.

The legal requirement: the written statement of particulars

Under the Employment Rights Act 1996, every employee is entitled to a written statement of employment particulars from day one of their employment. This is a legal minimum - not a choice.

The written statement must include the following:

The names of the employer and the employee. The start date and, if relevant, the date on which continuous employment began. The job title or a brief description of the work. The place of work. The rate of pay and how often it is paid. The hours of work, including any terms relating to normal working hours. Holiday entitlement, including public holidays and the holiday year. The arrangements for sick pay. The notice period on both sides. Details of any pension scheme. Whether any collective agreements apply.

Most employers satisfy this requirement by issuing a full employment contract that covers these points and more. The two documents are often combined into one.

What a full employment contract should include

Beyond the legal minimum, a well-drafted employment contract protects you in the situations that most commonly lead to disputes.

Probation clause. State the length of the probation period, any shorter notice period that applies during probation and whether the period can be extended and by how much. Without this clause, you lose the practical flexibility that probation is designed to provide.

Confidentiality clause. Protect your customer lists, pricing, supplier relationships and any commercially sensitive information. A confidentiality clause does not need to be lengthy to be effective, but it must be present. Without it, an employee who walks out and takes your client list with them has committed no contractual breach.

Variation clause. A clause that allows you to make reasonable changes to terms and conditions with notice. Without this, any change to hours, pay or duties requires the employee's agreement - and disagreement can lead to a constructive dismissal claim.

Garden leave clause. If you want the right to place an employee on garden leave during their notice period - keeping them away from the business while they serve their notice - you need a contractual right to do this. Without it, placing someone on garden leave may itself be a breach of contract.

Outside interests clause. A clause requiring the employee to disclose any outside work or business interests that could conflict with their role. Particularly important for trades businesses where employees may take private work using your tools, vehicles or client relationships.

What to avoid

Clauses that contradict statutory rights. Any clause that attempts to exclude or limit a statutory right - such as the right to SSP, the right to holiday pay or the right to be accompanied at a disciplinary meeting - is unenforceable. It does not protect you. It signals to a tribunal that you were attempting to undermine employee rights, which rarely helps your case.

Vague job descriptions. A job title of "general assistant" with no description of duties creates ambiguity about what the employee is actually required to do. Be specific enough to be useful without being so prescriptive that normal business changes require a contract amendment.

Restrictive covenants that are too broad. Post-termination restrictions - clauses that prevent an employee from working for a competitor or contacting your clients after leaving - are enforceable only if they are reasonable in scope, geography and duration. A blanket clause preventing a plumber from working in the construction industry for two years after leaving will not be upheld. A clause preventing them from soliciting your specific clients for six months after leaving probably will be.

Out-of-date statutory references. Employment law changes regularly. A contract drafted in 2019 that references legislation, pay rates or qualifying periods that have since changed is not just factually incorrect - it can create confusion about what the actual terms of employment are.

Issuing and signing the contract

Issue the contract before the employee starts, not after. A contract issued after the start date is still valid, but it removes the practical leverage of requiring signature before the first day.

Get a signed copy back. Keep it on file. If the employee refuses to sign, note that in writing and keep your copy of the issued contract. An unsigned contract is still evidence of the terms you offered.

What changes from January 2027

How Birchlow helps

Birchlow generates employment contracts that are legally compliant and tailored to your business - covering all statutory requirements and the protective clauses that matter for small employers. When employment law changes, your contracts update automatically. Every employee added to the platform gets a contract that reflects current law, not law from three years ago.