UK employment contracts: what must be included
Reviewed by Mellow Editorial Team, HR & payroll content team
Every UK employment contract must include a written statement of particulars — a legally required document that sets out the core terms of employment. Since April 2020, this statement must be provided on or before the employee's first day.
The written statement of particulars
The written statement is not optional. Under the Employment Rights Act, all employees and workers are entitled to receive it from day one. Failing to provide one can expose a business to tribunal claims and, in some cases, financial penalties.
The statement must be a single principal document (sometimes called a "principal statement") covering the most important terms. Additional details can follow in a supplementary document, but the core terms cannot be deferred.
What the principal statement must include
The following information must appear in the principal written statement:
- Names of the employer and employee
- Start date and, where relevant, the date continuous employment began
- Pay — the rate or method of calculating it, and how often it is paid
- Hours of work — including any arrangements around variable hours
- Holiday entitlement — employees working a standard five-day week are entitled to 5.6 weeks (28 days including bank holidays); the statement must confirm how this accrues and what happens on termination
- Job title or job description — both are acceptable
- Place of work — or, if the employee works in multiple locations, a statement of that fact
- Notice periods — what the employee and employer must each give
- Whether the role is permanent or fixed-term — and if fixed-term, the expected end date or the basis for termination
- Probationary period — its duration and conditions, if one applies
- Any other benefits — such as private health cover, gym membership or enhanced pension contributions, even if not contractually binding
- Sick pay arrangements — including any contractual sick pay above the statutory minimum
- Training entitlement — any training the employer requires the employee to complete, including whether it is paid
Items such as pension arrangements, collective agreements, and disciplinary and grievance procedures can be included in the principal statement or referenced separately, provided the employee can reasonably access those documents.
Day-one rights and the Employment Rights Act 2025
The Employment Rights Act 2025 strengthens and expands day-one rights for employees. Businesses writing or reviewing contracts now need to be aware that several rights that previously required a qualifying period now apply from the first day of employment.
This matters for how you draft clauses around dismissal, flexible working requests and family leave. Contracts written before these changes took effect may contain qualifying-period language that is no longer accurate. It is worth reviewing existing templates if you have not done so recently.
What a contract should — but is not legally required to — cover
Beyond the statutory minimum, a well-drafted contract protects both parties and reduces disputes. Consider including:
Confidentiality clauses. These can restrict employees from sharing sensitive business information during and after employment, provided they are reasonably scoped.
Restrictive covenants. Post-termination restrictions on competing, soliciting clients or poaching colleagues are enforceable in the UK — but only if they go no further than necessary to protect a legitimate business interest. Blanket, wide-ranging restrictions are routinely struck down by courts.
Intellectual property assignment. If the role involves creating anything — software, content, designs — a clause confirming that work created in the course of employment belongs to the employer is important. The law provides some protection automatically, but an explicit clause removes ambiguity.
Variation clauses. These allow the employer to make reasonable changes to terms (such as location or working pattern) without issuing a new contract each time. They need to be drafted carefully — a variation clause cannot override statutory rights or justify a fundamental change to the role.
Lay-off and short-time working clauses. Without an explicit contractual right, laying off employees or reducing their hours is a breach of contract. If your business is in a sector exposed to demand fluctuations, this clause is worth including from the outset.
Practical steps when issuing a contract
Issue the contract before or on the employee's first day, not after. Get a signed copy back and keep it on file.
Use plain English. A contract loaded with legal jargon is harder to enforce and harder to explain to employees — which creates disputes rather than preventing them.
Review your templates at least once a year. Tax codes, statutory pay rates, minimum wage rates and employment law all change; a contract that reflected the law in 2022 may not reflect it now.
Where roles are genuinely hybrid, zero-hours or involve variable pay, be precise about how each element works. Vague drafting on pay and hours is one of the most common sources of employment tribunal claims.
This article is general information, not legal advice. For guidance specific to your business, consult an employment solicitor or qualified HR adviser.
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