What Should Be Included in a UK Employee Contract? A Complete Checklist
What Should Be Included in a UK Employee Contract?
Getting an employment contract right isn’t just about ticking legal boxes. It’s about protecting your business, setting clear expectations, and building a strong working relationship from day one. A well-written contract helps prevent misunderstandings, reduces legal risks, and ensures that both you and your employee are on the same page.
So, what exactly should be included in a UK employee contract? Here’s a clear, practical checklist to help you get it right.
1. Employee & Employer Details
This section outlines who the contract applies to and ensures both parties are legally identified. It should include:
✅ The employee’s full name
✅ The employer’s registered name and address
✅ The start date of employment
✅ The location of work (e.g., office-based, remote, or hybrid)
Why It’s Important:
This ensures clarity from the outset, preventing disputes about employment terms and working locations.
Every contract must include basic details of both parties:
✅ Employee’s full name
✅ Employer’s registered name and address
✅ Start date of employment
✅ Location of work (e.g., office-based, remote, or hybrid)
This section sets out who the contract applies to and where work will be carried out.
2. Job Title
Every contract should specify the employee’s job title, while also allowing flexibility for the business.
I personally would not make the job description part of the contract. This should be a separate document which is not part of the contract. This means you can more easily add and change duties over time, to flex with business needs.
3. Hours of Work & Working Patterns
Employees need clarity on their expected working hours and flexibility. The contract should cover:
✅ Normal working hours (e.g., 9am-5pm, or flexible working options)
✅ Overtime rules (whether it’s paid or unpaid, and any caps on extra hours)
✅ Whether the role includes shift work, weekend work, or irregular hours
Why It’s Important:
Clear working hours prevent disputes about availability, particularly for part-time, shift-based, or remote workers. Clearly defining working hours helps manage expectations.
Your contract should specify:
✅ Normal working hours (e.g., 9am-5pm, flexible working options)
✅ Overtime rules (paid or unpaid, and any caps on extra hours)
✅ Whether the role includes shift work, weekend work, or irregular hours
This avoids confusion over availability, particularly for part-time, shift-based, or remote workers.
4. Salary & Payment Details
This section outlines how much an employee is paid, when, and under what conditions. It should state:
✅ Salary amount (hourly, weekly, or annual)
✅ Payment frequency (weekly, monthly)
✅ Any additional benefits (bonuses, commission, profit-sharing)
✅ Deductions (tax, National Insurance, pension contributions)
Why It’s Important:
Misunderstandings about pay can quickly lead to employee dissatisfaction, legal disputes, or payroll errors. Setting payment terms clearly from the start avoids these issues. Employees need to know how much and when they’ll be paid.
Your contract should outline:
✅ Salary amount (hourly, weekly, or annual)
✅ Payment frequency (weekly, monthly)
✅ Any additional benefits (bonuses, commission, profit-sharing)
✅ Deductions (tax, National Insurance, pension contributions)
Make sure the payment schedule is consistent to avoid payroll disputes.
5. Holiday Entitlement & Leave Policies
UK employees are legally entitled to at least 5.6 weeks of paid leave per year (including bank holidays).
The contract should clarify:
✅ Total holiday entitlement and whether bank holidays are included
✅ How annual leave is booked and any restrictions
✅ Sick pay arrangements (statutory vs. enhanced)
✅ Other leave entitlements (parental leave, bereavement leave, unpaid leave)
Why It’s Important:
A clear leave policy helps employees plan their time off and ensures fairness across the team. It also prevents confusion over when and how holiday can be taken. Every UK employee is entitled to at least 5.6 weeks’ paid leave per year, including bank holidays.
Your contract should clarify:
✅ Total holiday entitlement and whether bank holidays are included
✅ How annual leave is booked and any restrictions
✅ Sick pay arrangements (statutory vs. enhanced)
✅ Other leave entitlements (parental leave, bereavement leave, unpaid leave)
Well-defined leave policies ensure fairness and consistency in your business.
6. Notice Periods & Termination Terms
This section helps avoid confusion when employment ends. It should specify:
✅ The amount of notice the employer and employee must give
✅ Probation period terms (shorter notice periods may apply)
✅ What happens in cases of gross misconduct (instant dismissal)
✅ Any post-employment obligations (e.g., returning company property)
Why It’s Important: Without clear termination terms, disputes can arise over how much notice is required or whether a dismissal is legally valid.
Failing to specify notice periods can lead to legal complications if employment ends unexpectedly.
7. Confidentiality & Data Protection
Confidentiality agreements prevent employees from sharing proprietary business information, ensuring that data, client relationships, and trade secrets remain protected.
To protect sensitive business information, include:
✅ A confidentiality clause preventing employees from sharing business secrets
✅ Data protection policies explaining how employee data is handled
✅ Guidelines on handling customer and client information securely
This helps prevent data leaks and intellectual property theft.
8. Restrictive Covenants (if applicable)
Without restrictive covenants, an employee could go and work for a direct competitor or take key clients with them. However, these clauses must be reasonable to be legally enforceable.
If you need to prevent employees from working for competitors or poaching clients after they leave, include:
✅ Non-compete clauses (restricts working for competitors)
✅ Non-solicitation clauses (prevents poaching clients/customers)
✅ Timeframes for restrictions (e.g., 6-12 months post-employment)
⚠️ Important: Restrictive covenants must be reasonable and justifiable, or they could be unenforceable in court.
9. Intellectual Property Rights
If your employees create content, designs, or products as part of their role, you need to clearly define who owns the rights to that work. Your contract should specify:
✅ That any work, designs, inventions, or materials created during employment belong to the company
✅ Whether employees can use company resources for personal projects
✅ How intellectual property is handled after an employee leaves
Why It’s Important:
Without an IP clause, an employee could claim ownership of work they’ve produced while employed by your company—potentially leading to legal battles over trademarks, patents, or business-critical assets.
Having clear policies ensures fair treatment and compliance with employment law.
10. Contract Variations & Amendments
Employment contracts should explain how changes will be handled.
✅ State whether the employer has the right to amend terms
✅ Outline how employees will be consulted before changes are made
✅ Confirm that significant changes require mutual agreement
Unclear contract variations can lead to legal disputes if employees refuse changes.
To Sum Things Up
📑 A well-written employment contract isn’t just a legal formality—it’s a vital tool for protecting your business and setting clear expectations.
Covering these key areas helps prevent disputes, ensures compliance, and builds stronger employer-employee relationships. 🚀
Resources
💡 Free Guides & Tools
- Employment Law Guide – A step-by-step guide to legal compliance
- Leadership Playbook – Strategies to step up into your leadership role
🛠️ Paid Resources & Support
- Contract Templates – Ready-to-use, legally compliant redundancy documents.
- HR Advice - Got questions about staff contracts? Pick my brains and choose either 30 or 60 mins with me via Zoom to get your questions answered.
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