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Employment Contract Review Checklist: What to Check Before You Sign
An employment contract review checklist for UK businesses is one of those things that sounds obvious until you realise you skipped it and are now dealing with a dispute. Whether you are hiring your first employee or reviewing a contract before you sign one yourself, the details matter. UK employment law sets a baseline — things like written statements of particulars, notice periods, and statutory rights — but contracts routinely include clauses that go well beyond that baseline in ways that are not always in your favour. Restrictive covenants, IP assignment, garden leave, and post-termination restrictions are all areas where vague or one-sided drafting can cause real problems later. This page gives you a practical, UK-specific checklist to work through before you sign or issue any employment contract. It covers the must-have clauses, the red flags to watch for, and the points where you should stop and get a solicitor involved rather than pressing on alone.
Why this matters
The Atornee approach
What you get
Before you sign checklist
FAQ
What must a UK employment contract include by law?
Under the Employment Rights Act 1996, employers must provide a written statement of employment particulars from day one. This must cover the job title, start date, pay, hours, holiday entitlement, notice periods, sick pay arrangements, and pension. Many contracts include additional terms beyond this statutory minimum, but the minimum must be there. If it is not, that is a red flag worth addressing before the employment starts.
Are restrictive covenants in UK employment contracts enforceable?
They can be, but UK courts will not enforce a restrictive covenant that goes further than reasonably necessary to protect a legitimate business interest. A twelve-month non-compete covering an entire industry nationwide is likely to be challenged. A six-month restriction on approaching specific named clients in a defined sector is more likely to hold. The enforceability depends heavily on the specific wording, the seniority of the role, and the nature of the business. If a contract you are reviewing has broad restrictions, get legal advice before signing.
Can I negotiate an employment contract in the UK?
Yes. An employment contract is an offer, not a take-it-or-leave-it document, even if it is presented that way. You can negotiate notice periods, restrictive covenants, IP clauses, and other terms. Whether the employer will agree is a separate question, but asking is always legitimate. If you are issuing contracts as an employer, be prepared for candidates to push back on overly broad clauses — and consider whether those clauses are actually necessary.
What are the biggest red flags in a UK employment contract?
The most common red flags are: overly broad post-termination restrictions with no geographic or time limit; IP clauses that assign ownership of everything you create, including work done in your own time; garden leave provisions that could keep you on the payroll but inactive for months; vague definitions of confidential information that could cover almost anything; and missing statutory particulars. Any clause that is ambiguous about what you are agreeing to is also worth flagging before you sign.
Do I need a solicitor to review an employment contract in the UK?
Not always, but sometimes yes. For a straightforward contract with standard terms and no unusual clauses, a structured AI-assisted review can give you a solid first pass and flag anything worth a closer look. Where you should escalate to a solicitor is when the contract contains complex restrictive covenants, significant IP assignment terms, senior executive provisions, or anything you do not fully understand after a first review. The cost of getting it wrong is usually higher than the cost of an hour of legal advice.
What is the difference between an employment contract and a written statement of particulars?
A written statement of particulars is the statutory minimum document an employer must provide under UK law. An employment contract is the broader agreement between employer and employee, which typically includes the statutory particulars plus additional terms around confidentiality, IP, restrictions, and other matters. In practice, most employers combine both into a single document. If you only receive a written statement and nothing else, you may have less contractual protection than you think on matters like notice and post-termination obligations.
Related Atornee Guides
Cheap Contract Solicitor Alternative (UK)
Useful if you want to understand your broader options for contract review beyond employment-specific documents.
Cheap Solicitor for NDA (UK)
Relevant when an employment contract includes confidentiality obligations you want to review separately or supplement with a standalone NDA.
Atornee Use Cases
See how UK founders, HR leads, and operators use Atornee across different document review and legal workflow scenarios.
External References
GOV.UK Business and Self-employed
Official UK government guidance on employment law, written particulars, and employer obligations.
UK Legislation
Primary source for the Employment Rights Act 1996 and other statutes governing UK employment contracts.
ICO Guidance for Organisations
Relevant when reviewing data protection and confidentiality clauses in employment contracts under UK GDPR.
Trust & Verification Policy
Authored By
Atornee Editorial Team
UK Employment Contract Research
Reviewed By
Compliance Review Desk
UK Business Legal Content QA
"This content is based on analysis of common UK employment contract structures, statutory requirements under the Employment Rights Act 1996, and the clause patterns most frequently flagged in Atornee document reviews. It reflects practical experience with the contract issues UK founders and employees encounter most often."
References & Sources
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