A clear employment contract protects both employer and employee, sets expectations, and reduces the risk of disputes. In England and Wales there is also a legal minimum you must give every employee and worker. This guide explains what a basic UK employment contract should contain and why each part matters.
Start with the legal minimum
By law, you must give employees and workers a written statement of the main terms of their employment on or before their first day (Employment Rights Act 1996, section 1). A good contract incorporates this statement and goes further. The required particulars include:
- the names of employer and employee and the start date (and any earlier continuous-employment date);
- pay (amount, how calculated, and when paid);
- hours of work (and any variation, such as shifts);
- holiday entitlement;
- job title or a brief description, and place of work;
- notice periods on each side;
- any probationary period, benefits, and training entitlement; and
- details of sick pay, pensions, and any relevant policies.
The clauses that protect the business
Beyond the minimum, a basic contract should include provisions that you may need to rely on later:
- Probationary period, a defined trial period with shorter notice.
- Confidentiality, protecting business and client information during and after employment.
- Intellectual property, confirming that work created in the course of employment belongs to the company.
- Deductions, written authority to make lawful deductions (you generally cannot deduct from wages without it).
- Garden leave, the right to keep a departing employee away from work during notice.
- Post-termination restrictions, narrowly drafted non-solicitation, non-dealing or non-compete clauses, where justified. Keep them no wider than necessary, or they will be unenforceable.
Leave and family rights
Set out holiday clearly (inclusive of or in addition to bank holidays), and reflect statutory family leave (maternity, paternity, adoption and shared parental leave) and other statutory rights. Getting holiday wording right avoids common disputes.
Fair procedures
Refer to your disciplinary and grievance procedures, in line with the ACAS Code of Practice, following it matters, because tribunals can adjust awards by up to 25% where it is unreasonably ignored.
Keep it current and consistent
- Update contracts when roles or terms change (and get written agreement to changes).
- Make sure the contract, the written statement and any handbook are consistent.
- Apply terms consistently across staff to avoid discrimination issues.
Key takeaways
- You must give a written statement of particulars on or before day one (ERA 1996, s 1), build this into the contract.
- Include business-protection clauses: confidentiality, IP, deductions, garden leave and (where justified) restrictive covenants.
- Reflect holiday and statutory family rights accurately.
- Refer to ACAS-compliant disciplinary and grievance procedures, and keep contracts up to date.
Sources
- Employment Rights Act 1996, section 1 (written statement of particulars; day-one right)
- The law on restrictive covenants (restraint of trade) and lawful wage deductions
- ACAS Code of Practice on Disciplinary and Grievance Procedures
--- This article is general information about the law of England & Wales as at 2026, not legal advice. For advice on your circumstances, consult a qualified solicitor.