What to Include in a UK Employment Contract – And What Most Templates Get Wrong

Every employer in the UK must give employees a written statement of employment particulars on or before their first day. But a bare-minimum statement and a properly drafted employment contract are not the same thing – and the gap between them is where most small-business disputes start.

For a complete set of ready-to-use documents, see our HR contract templates.

The Legal Minimum vs What You Actually Need

Since April 2020, the right to a written statement of employment particulars applies from day one. The statement must include core terms such as the employer's name, job title, start date, pay, hours, holiday entitlement, place of work, notice periods and any collective agreements.

But a statement of particulars is not a full contract. It tells the employee what their terms are; it doesn't protect you as the employer. A proper employment contract goes further by including restrictive covenants, confidentiality obligations, IP assignment clauses, garden-leave provisions, deductions-from-wages consent and disciplinary/grievance references.

Be aware of the upcoming Employment Rights Bill changes that will affect your contracts, particularly around probationary periods and day-one rights.

What Most Free Templates Get Wrong

Free employment-contract templates are everywhere online. The problem is that most are either too thin (missing protective clauses), too American (not reflecting UK statutory rights), out of date, or one-size-fits-all without distinguishing between junior and senior roles.

Key Clauses Your Employment Contract Should Include

Beyond the statutory particulars, a well-drafted UK employment contract should cover:

• Probationary period – length, review process and what happens at the end
• Confidentiality – obligations during employment and after
• Intellectual property – confirmation that work created belongs to the employer
• Restrictive covenants – non-compete, non-solicitation clauses tailored to the role
• Garden leave – the right to require the employee to stay at home during notice
• Deductions from wages – express consent as required by the Employment Rights Act 1996
• Disciplinary and grievance – reference to your procedures. See our guide on how to handle a disciplinary when you don't have an HR department
• Data protection – reference to your employee privacy notice

How Our HR Templates Handle This

Our employment-contract templates are designed for UK small businesses and cover both the statutory particulars and the protective clauses most free templates miss. They're designed to work alongside our employee handbook and HR policy templates.

Related reading

• Employee Vs Self-Employed Guide
• Joined-Up Employment Documents