How to write an employment contract in the UK

If you have a business in the UK and starting to hire staff, you will not be able to avoid drawing up an employment contract. In fact, UK law requires you to provide a written statement of the main terms of employment from the first day of employment. But don’t worry, here’s how to write an employment contract in the UK.

You don’t need to be a lawyer to write a decent employment contract. With a little guidance and attention to detail, you can create an employment contract that complies with UK law and protects both your company and your employees.

What is an employment contract?

An employment contract is a legal agreement between the employer and the employee. Although many aspects of the contract may be verbal, the law in the UK requires that certain minimum terms and conditions be given in writing from the first day of employment. This is known as a written statement of employment particulars.

Be careful, because if you fail to provide this document on time, you could face a formal complaint to the Employment Tribunal.

Types of contracts in the UK

First of all, you need to familiarise yourself with the types of contracts to find out which one suits you best. For example, a permanent contract means permanent employment and full rights. However, the temporary contract has a fixed end date.

Finally, the self-employed or freelance worker. They are not an employee as such, therefore, they do not have the same labour rights.

How to write an employment contract in the UK: parts of the contract

First and foremost, of course, the UK employment contract must contain the details of the employer and the employee. It will also include the name of the company and its address.

Secondly, the start date of the contractual relationship, which is the date on which the employee starts working. If the person has had a previous relationship with the company (temporary contracts or internships), this must also be indicated.

Next, it is time to describe the job. This should specify the name of the job and the responsibilities it entails. Be clear but not too detailed, a little flexibility is welcome.

Then, the location from where the worker will carry out his or her duties. Office, teleworking, commuting, etc. Is important to state the possibility of commuting in a UK employment contract.

Working hours, including the number of hours per week and per day, as well as flexibility or the possibility of rotating shifts.

You must not forget that

One of the most important issues for the employee is the salary and the method of payment. How much will the employee earn? At what time of the month is the salary paid? Possible legal deductions, such as pension contributions.

Holidays are also of no less interest. Note that the statutory minimum annual leave in the UK is 28 days holiday, including bank holidays, for full-time employees.

If necessary, a probationary period can be included where both parties can terminate the employment relationship with less notice. Even so, you should not forget to detail the deadlines for announcing a dismissal or resignation. The legal minimum is 1 week after the first month worked.

In the same vein, the sickness and absence policy need to be specified in no uncertain terms. Include how you report sick leave, whether you pay beyond Statutory Sick Pay (SSP) and what the internal process is.

At the end of a UK employment contract, we recommend that you include a number of additional clauses. This is the case of the privacy and data use policy, confidentiality, post-employment restrictions or disciplinary regime and grievance escalation. The latter is mandatory by law.

Final tips on how to write an employment contract in the UK

As in the past, the UK has a number of tools and templates that may be useful for you. Template contracts can be found on the official government website.

Avoid complicated legal language and make sure the employee signs and receives a copy of the contract. And to comply with current legislation, don’t forget to keep up to date with changes to the Employment Rights Act 1996 and other related legislation.

Conclusion

An employment contract is not just a legal requirement, it is a key tool to set clear expectations and avoid misunderstandings. Follow our advice and refer to the official guidelines to avoid any legal problems whatsoever.