How to write an employment contract in UK

If you’re about to hire staff for your business, knowing how to prepare an employment contract in UK is essential for establishing a clear, professional relationship that follows legal standards.

This guide will walk you through what it should include, the legal framework you must consider, and key tips to help you avoid future complications.

What to know about writing an employment contract in UK

Is a written employment contract mandatory in UK?

Yes. In the United Kingdom, individuals starting a new job are entitled to receive a written statement of their main terms from day one. While this doesn’t have to be a full formal agreement, offering one from the beginning is highly advisable.

Having everything clearly documented protects both sides, outlines responsibilities, and greatly reduces the chances of misunderstandings or legal disputes down the line.

Common types of employment contracts in UK

Before drafting anything, it’s important to define the kind of collaboration you’re about to establish. In the United Kingdom, common formats include:

Full-time or part-time roles: These involve fixed working hours per week.
Temporary arrangements: For a set project, campaign, or limited timeframe.
Independent contractor roles: More of a service-based setup without formal employment status.
Zero-hours setup: Work is offered as needed, without guaranteed shifts.

Each of these arrangements carries different legal obligations, entitlements, and mutual expectations, so identifying the right one is crucial.

Key components to include in an employment contract

To ensure legal validity and proper structure, the agreement should cover the following essentials:

Names of both parties involved.
Start date of the collaboration.
Job title and a summary of duties.
Expected weekly or monthly hours.
Agreed compensation and payment schedule.
Work location or whether it’s remote.
Notice period for ending the arrangement.
Leave policies and paid time off.
Trial period details, if applicable.
Clauses regarding confidentiality or non-compete, if relevant.

You can also include company-specific policies such as use of technology, internal conduct codes, or performance review practices.

Minimum statutory rights to observe

Every working arrangement must align with basic legal entitlements under UK law, including:

Payment that meets at least the national minimum wage thresholds.
Paid time off: At least 28 days per year for full-time roles (including public holidays).
Protection against unfair dismissal after a certain length of service.
Access to parental, sick, or special leave as per government guidelines.
Enrolment into a pension scheme through auto-enrolment.

Any clause that attempts to override these legal standards will be considered invalid.

Best practices when drafting the agreement

To ensure your document is clear, complete, and professional, follow these best practices:

Use plain language, avoid overly technical legal jargon.
Be specific about roles, schedules, and expectations.
Eliminate ambiguity that could lead to differing interpretations.
Tailor the agreement to your business or sector instead of relying on templates.
Make sure it’s signed and dated by both parties.

It’s also a good idea to consult with a legal advisor or use an affordable review service before finalising the document.

When and how to update the terms of the contract

The initial terms shouldn’t be seen as fixed forever. You’ll need to review and adjust the agreement if:

There are salary increases or job role changes.
The location or working method changes (e.g. shift to remote work).
New employment legislation comes into effect.

Whenever key terms are updated, changes should be communicated in writing, ideally with at least one month’s notice, to avoid confusion or potential disputes.

Conclusion

Creating a solid and legally compliant document to define working relationships in the United Kingdom is a smart move for any business owner. A well-prepared agreement not only fulfils legal obligations but also builds the foundation for a productive, respectful, and professional collaboration right from the start.