By Stacey Watkinson
Employment contracts are more than just an onboarding process; they are a legally binding document that protects both the employer and the employee by clearly outlining the terms and conditions of the employment. No matter which side you are coming from in this employee or employer, it is vital to understand what information is a must to include in the contract from the start.
Employers are legally required to provide employees or workers with a written statement of employment particulars, which is also known as an employment contract. This must be issued from the first day of employment under the employment law.
Here’s what must be included:
1. The Employer’s Name
The legal business name must be stated clearly.
2. The Employee or Worker’s Name
The full name of the individual entering into the contract has to be included.
3. Start Date of Employment
The exact date the employee or worker begins working for the company.
4. Continuous Employment Start Date
For employees, this section should confirm the date their continuous employment began, this is especially important for statutory entitlements such as redundancy pay or unfair dismissal rights.
5. Job Title and/or Description
The contract must include the employee’s job title or a summary of the role and duties they are employed to carry out.
6. The Employer’s Address
Usually, the registered address of the business or the location of its main office.
7. Place(s) of Work
It should state where the employee is expected to work. If the role involves working at multiple sites or remotely, that must be detailed within this section.
8. Pay Details
This section must explain:
- How much the employee will earn (e.g., £1,000 per month)
- How frequently they’ll be paid (e.g., monthly)
- When payment will be made (e.g., last Friday of the month)
9. Working Hours and Days
The expected working hours and days must be included in the contract, as well as whether these can change, for example, if shift work or flexible hours are involved.
10. Holiday Entitlement and Pay
This must include:
- How much paid holiday entitlement will the employee receive
- How holiday pay is calculated
- What happens to unused holidays if the employee leaves the company
11. Sick Leave and Pay
If this isn’t fully outlined in the contract, it must state where the employee can find the relevant information — for example, in the staff handbook,, etc.
12. Other Paid Leave
If the contract doesn’t explain this in detail, it must indicate where the employee can find information about other types of paid leave (e.g., parental leave, carers leave or compassionate leave).
13. Contractual Benefits
These are benefits the employer is legally bound to provide, such as a company car, an enhanced pension scheme, or private health insurance.
14. Non-Contractual Benefits
These are optional benefits the employer may offer, like free lunches or gym memberships, which can be changed or withdrawn.
15. Notice Period
The contract must state how much notice both parties must give to end the employment.
16. Job Duration (If Temporary or Fixed Term)
The contract must state how long the job will last if the role is not permanent.
17. Probation Period
If there is a probationary period, the contract must clearly explain how long it lasts and the conditions attached to it, such as performance reviews.
18. Working Abroad
If the employee is required to work outside the UK for more than one month, the contract must explain the following details:
- Where they’ll be working
- How long will they be abroad
- Any relevant terms (e.g., allowances, accommodation)
19. Training Requirements
Any mandatory training must be listed, including whether the employer will pay for it or if the employee must cover the cost themselves.
Summary
Employment contracts are not just a box-ticking exercise, they’re a very useful resource for setting clear expectations and ensuring compliance with employment law. Including the elements above, employers can be sure to create a strong foundation for trust and professionalism from day one, while employees can feel secure in understanding their rights and obligations from the outset. If you’re an employee starting a new job, don’t hesitate to ask questions about anything you are unsure of in your contract.
Further advice and guidance can be found on the ACAS website.
If you’re an employer who is still unsure about drafting a contract, don’t risk getting it wrong, contact us today to speak with our expert HR team.
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