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how to draft a employment contract uk

How to Draft a Employment Contract in the UK

If you need to know how to draft a employment contract uk, you are in the right place. Under UK law, every employee must receive a written statement of particulars on or before their first day of work — this is a legal requirement under the Employment Rights Act 1996, as amended by the Good Work Plan in 2020. Getting this wrong exposes your business to tribunal claims and compensation awards. A solid employment contract goes further than the statutory minimum: it protects your IP, sets out notice periods, restricts post-employment competition where enforceable, and makes disciplinary expectations clear. This guide walks you through every clause you need, what the law actually requires versus what is best practice, and where the common mistakes happen. Whether you are hiring your first employee or your fiftieth, the same fundamentals apply. We will keep this practical and specific to England, Scotland, and Wales.

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Why this matters

Most founders draft employment contracts by copying something from the internet or tweaking a template a friend sent over. The result is usually a document that is either missing legally required particulars, contains unenforceable clauses, or does not reflect how the business actually operates. When things go wrong — a dismissal, a dispute over commission, an employee taking clients — the contract is the first thing an employment tribunal or solicitor looks at. A poorly drafted contract does not just fail to protect you; it can actively work against you. This page exists to close that gap without requiring you to spend thousands on a solicitor for a standard hire.

The Atornee approach

Atornee lets you generate a UK-compliant employment contract in minutes by answering plain-English questions about the role, pay, hours, and any specific clauses you need. It is not a generic template dump. The output reflects current UK employment law requirements including the 2020 Good Work Plan changes, and flags where your specific situation — commission structures, remote working, IP ownership — needs careful wording. You review the draft, make edits, and download it ready to send. If your situation is genuinely complex, Atornee tells you that too, rather than pretending a standard document will cover it.

What you get

A clear breakdown of every clause legally required in a UK employment contract under the Employment Rights Act 1996
Practical guidance on enforceable restrictive covenants — what courts will and will not uphold in the UK
Specific wording considerations for remote workers, part-time staff, and zero-hours arrangements
A checklist of common drafting mistakes that lead to employment tribunal exposure
Honest guidance on when your contract situation is complex enough to need a qualified employment solicitor

Before you sign checklist

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1. Confirm the employee's start date — the written statement of particulars must be provided on day one, not after
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2. Decide on employment status: employee, worker, or self-employed contractor — each has different legal obligations and the contract must match the reality
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3. List every element of pay including base salary, commission, bonuses, and benefits — vague pay clauses cause disputes
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4. Define working hours clearly, including whether the employee is exempt from the 48-hour Working Time Regulations opt-out or whether you need them to sign one
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5. Identify any confidential information, IP, or client relationships you need to protect and draft specific clauses for each — generic boilerplate is often unenforceable
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6. Include a disciplinary and grievance procedure reference or attach your policy — this is a statutory requirement
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7. Review the final draft against the ERA 1996 statutory particulars checklist before sending to the employee

FAQ

What must legally be included in a UK employment contract?

Under the Employment Rights Act 1996 as updated in 2020, you must provide a written statement of particulars from day one. This must include: the employer and employee names, job title and description, start date, pay and pay frequency, hours of work, holiday entitlement, sick pay arrangements, notice periods, pension details, any probationary period, and details of any collective agreements. Additional particulars covering training, other paid leave, and normal place of work must also be included. Failing to provide this gives an employee grounds to make a tribunal claim.

Are restrictive covenants enforceable in UK employment contracts?

They can be, but UK courts apply a reasonableness test. A restriction must go no further than necessary to protect a legitimate business interest — things like client relationships, trade secrets, or key staff. Blanket non-competes covering wide geographies or long time periods are regularly struck out. Courts look at the employee's seniority, the nature of the business, and whether the restriction was reasonable at the time of signing. If you need these clauses, the wording matters significantly and a solicitor review is worth it for senior hires.

Can I use the same employment contract template for all employees?

A base template is fine for standard full-time roles, but you need to adjust it for part-time staff (pro-rata rights must be correct), zero-hours workers (different obligations apply), remote workers (place of work clauses and equipment policies need updating), and any role involving commission or variable pay. Using an identical template across different role types is one of the most common causes of contractual disputes.

Does a UK employment contract need to be signed to be valid?

Technically, an employment contract can exist without a signature — conduct and verbal agreement can create contractual terms. However, an unsigned written contract creates evidential problems if there is ever a dispute. Always get a signed copy back before or on the employee's start date. Keep a copy on file. If an employee starts work without signing, the contract terms may still be implied, but you lose the clarity that a signed document provides.

What is the difference between an employment contract and a written statement of particulars?

A written statement of particulars is the statutory minimum document required by law. An employment contract is the broader legal agreement between employer and employee, which includes the statutory particulars but also additional terms like IP ownership, confidentiality, restrictive covenants, and specific policies. In practice, most employers combine both into a single document. The statutory particulars are the floor — your contract should build on top of them.

When should I get a solicitor to draft or review an employment contract instead of using a template?

Use a solicitor for senior hires where restrictive covenants are critical, roles involving significant IP creation, any situation where the employment status is genuinely ambiguous, or where you are hiring internationally. For standard UK-based employees in straightforward roles, a well-built template reviewed against current law is usually sufficient. The risk is not in using a template — it is in using an outdated or generic one that does not reflect your actual business.

Related Atornee Guides

Cheap Contract Solicitor Alternative (UK)

Useful if you want to understand when Atornee replaces a solicitor and when it does not for contract work generally.

Cheap Solicitor for NDA (UK)

Many employment contracts need a confidentiality clause — this guide covers standalone NDAs for situations where that is not enough.

Atornee Use Cases

See how other UK founders and operators use Atornee across hiring, supplier contracts, and compliance workflows.

External References

GOV.UK Business and Self-employed

Official UK government guidance on employment rights, written statements, and employer obligations.

UK Legislation

Primary source for the Employment Rights Act 1996 and subsequent amendments including the Good Work Plan changes.

ICO Guidance for Organisations

Relevant for data protection clauses in employment contracts covering employee data handling obligations under UK GDPR.

Trust & Verification Policy

Authored By

A

Atornee Editorial Team

UK Employment Contract Research

Reviewed By

C

Compliance Review Desk

UK Business Legal Content QA

Last reviewed on 3/4/2026

"This content is based on analysis of UK employment law requirements under the Employment Rights Act 1996 and Good Work Plan 2020 amendments, cross-referenced against common drafting errors identified in UK employment tribunal case patterns. It reflects practical guidance developed for small and medium-sized UK businesses hiring their first employees through to scaling teams."

References & Sources