Employment Contracts9 minUpdated 1 Apr 2026

What Must Be in a UK Employment Contract: The 2026 Checklist

What Must Be in a UK Employment Contract: The 2026 Checklist

Every employee in the UK is entitled to a written statement of employment particulars from their first day of employment. This is not optional, and it is not just good practice. It is a legal requirement.

If you are using an old contract template, one downloaded from the internet in 2018, or one that has not been updated since the ERA 2025 changes, there is a real chance it is missing required information, contains clauses that are now incorrect, or fails to reflect the current rules.

This guide covers everything that must be included in a UK employment contract in 2026, what the ERA 2025 requires you to update, and what to check before you hire your next employee.


The Legal Basis: Written Statement of Particulars

Under the Employment Rights Act 1996 (as amended), every employee and worker is entitled to a "written statement of employment particulars" from day one of employment.

Since April 2020, this must be provided on or before the first day of work, not within two months as was previously the case. It must also cover a broader range of terms.

Who is entitled to a written statement?

  • Employees (including zero hours employees)
  • Workers (since April 2020)

The written statement can be provided as a formal contract of employment, which most employers use, or as a standalone document. Using a contract of employment is better practice because it sets out all the terms in one place and both parties sign it.


The Principal Statement (Day One Document)

The law splits the written statement into two parts. The first is the "principal statement", which must be provided on or before the first day of work.

The principal statement must include:

Employer and employee details:

  • The employer's name and address
  • The employee's name
  • The employee's job title or a brief description of the work

Pay:

  • The scale or rate of pay, or the method of calculating pay
  • The intervals at which pay is made (weekly, monthly, etc.)

Hours:

  • Hours of work, including any terms and conditions relating to normal working hours
  • Days the employee is required to work and whether they may be variable

Holiday:

  • Entitlement to paid annual leave (including public holidays)
  • The holiday pay rate

Sick pay:

  • Any terms and conditions relating to incapacity for work, including any provision for sick pay

Pensions:

  • Any terms and conditions relating to pensions and pension schemes

Notice periods:

  • The notice the employee is required to give, and the notice they are entitled to receive, to terminate the contract

Probationary period:

  • The length of any probationary period
  • The conditions of any probationary period (since April 2020)

Other work:

  • Any other paid employment the employee is not permitted to work (exclusivity clauses for zero hours workers are prohibited under ERA 2025)

Start date:

  • The date of commencement of employment
  • If the employment does not count as continuous employment, the date since which the continuous period began

Length of employment:

  • Whether the employment is permanent or, if fixed-term, the period for which it is expected to continue or the end date

Location:

  • The place of work, or where the employee works in various places, an indication of that and the employer's address

The Extended Statement (Within Two Months)

A second set of information must be provided within two months of the start of employment, although in practice most employers include it all in the initial contract.

This includes:

  • Any collective agreements that directly affect the terms
  • Details of overseas working arrangements (if applicable)
  • The disciplinary rules that apply
  • The grievance procedure
  • The person to whom the employee can apply if they are dissatisfied with a disciplinary decision, or if they have a grievance
  • How to apply (in writing, to whom, etc.)
  • Any contracting-out certificate (pension)

What the Employment Rights Act 2025 Changes

Several specific changes from the ERA 2025 require contract updates. Check each of these in your current templates:

1. Statutory Sick Pay (From 6 April 2026)

If your contract or sick pay policy refers to a three-day waiting period before SSP becomes payable, remove it. From 6 April 2026, SSP is payable from day one of sickness absence.

Update the sick pay clause to state that SSP (or enhanced company sick pay, if you offer it) is payable from the first day of qualifying sickness absence.

2. Paternity and Parental Leave (From 6 April 2026)

If your contract states that paternity leave requires 26 weeks of service, that clause is now incorrect. Paternity leave and unpaid parental leave are day one rights from 6 April 2026.

Update your parental leave clauses to remove qualifying service requirements.

3. Zero Hours Contracts and Exclusivity (Ongoing, Strengthening in 2027)

Exclusivity clauses in zero hours contracts (clauses that prevent the worker from taking other employment) have been unenforceable since 2015. The ERA 2025 strengthens these protections further.

If any of your contracts for zero hours workers contain exclusivity or restrictive clauses about working for other employers, remove them.

4. Whistleblowing (From 6 April 2026)

While your whistleblowing policy (not the contract itself) needs to be updated to include sexual harassment as a qualifying disclosure, it is good practice to check your contract does not contain clauses that inadvertently restrict disclosures.

5. Unfair Dismissal Qualifying Period (From January 2027)

If your contracts state that employees have unfair dismissal rights after two years, this will be incorrect from January 2027 when the qualifying period drops to six months. Strictly, the qualifying period is set by statute and does not need to be in the contract, but if you include it as information, update it.

6. Flexible Working (2027, Dates TBC)

The ERA 2025 will strengthen flexible working rights, but the details are still being consulted on. Watch for updates and be ready to update your flexible working clause when the regulations are confirmed.


The Full Employment Contract Checklist: 2026

Use this checklist for every new employment contract you issue from April 2026.

Identification

  • [ ] Employer's full legal name and address
  • [ ] Employee's full name and address
  • [ ] Employee's National Insurance number (best practice, not strictly required in the statement)
  • [ ] Start date of employment

Role

  • [ ] Job title and brief description of duties
  • [ ] Place of work (or places of work, with an indication if variable)
  • [ ] Whether employment is permanent or fixed-term (with end date if fixed-term)

Pay

  • [ ] Rate of pay (hourly, weekly, annual)
  • [ ] Pay interval (weekly, monthly, fortnightly)
  • [ ] Method of payment (BACS, etc.)
  • [ ] Any overtime rate or arrangements
  • [ ] Any commission or bonus arrangements (including whether contractual or discretionary)
  • [ ] Any deductions from pay (with clear basis and employee consent where required)

Hours

  • [ ] Normal working hours per day or week
  • [ ] Days of work (fixed or variable)
  • [ ] Whether hours are variable and how they are determined
  • [ ] Overtime obligations (if any)

Holiday

  • [ ] Annual leave entitlement in days (minimum 28 days for full-time, including bank holidays, or 5.6 weeks)
  • [ ] Whether bank holidays are included in or in addition to the entitlement
  • [ ] How holiday is accrued for part-year and irregular hours workers (note: rolled-up holiday pay is permissible from 2024)
  • [ ] Notice required to take holiday
  • [ ] Whether untaken leave can be carried over (and limit)
  • [ ] Holiday pay on termination

Sick Pay

  • [ ] SSP entitlement (from day one, no waiting period, from 6 April 2026)
  • [ ] Any enhanced company sick pay (rate, qualifying period, maximum weeks)
  • [ ] Reporting requirements for sickness absence

Pensions

  • [ ] Auto-enrolment pension scheme (legally required for eligible employees)
  • [ ] Employer contribution rate
  • [ ] Opt-out rights

Notice and Termination

  • [ ] Employee's notice period
  • [ ] Employer's notice period (minimum: one week per year of service, up to twelve weeks)
  • [ ] Garden leave provision (if applicable)
  • [ ] PILON (payment in lieu of notice) provision

Probationary Period

  • [ ] Length of probationary period (six months recommended from 2026)
  • [ ] Review process during probation
  • [ ] Right to extend probation (with maximum extension period)
  • [ ] Notice during probation (can be different from main notice period)

Parental Leave

  • [ ] Maternity leave entitlement and pay
  • [ ] Paternity leave entitlement (day one right from 6 April 2026: no qualifying service requirement)
  • [ ] Shared parental leave reference
  • [ ] Unpaid parental leave (day one right from 6 April 2026: no qualifying service requirement)

Confidentiality and IP

  • [ ] Confidentiality obligations during and after employment
  • [ ] Intellectual property ownership (work created in the course of employment belongs to the employer)

Post-Termination Restrictions

  • [ ] Non-compete, non-solicitation, and non-dealing clauses (if applicable)
  • [ ] Geographic and time limits on restrictions (must be reasonable to be enforceable)

Other

  • [ ] Reference to disciplinary procedure (with where to find it)
  • [ ] Reference to grievance procedure
  • [ ] Right to vary terms (with appropriate consultation obligation)
  • [ ] Governing law (England and Wales, or Scotland, or Northern Ireland)

What Happens If You Do Not Provide a Written Statement?

If you fail to provide a written statement, the employee can make a claim to an employment tribunal. The tribunal can award between two and four weeks' pay as compensation (capped at the weekly pay limit, currently £719 in 2025/26).

This award is only available where the employee brings another successful claim (such as unfair dismissal). It is not a standalone claim.

But beyond the financial penalty, the real risk of not having a written statement is that disputes about terms (pay, notice, holiday) end up before a tribunal with no documented agreement. Courts will imply reasonable terms, but the employer's preferred terms may not be what a court implies.


Common Contract Mistakes to Fix Now

Mistake 1: "You are entitled to two weeks' notice."

Notice must be at minimum statutory notice (one week per year of service, up to twelve weeks). If your notice clause is less than this, the statutory minimum applies anyway, but you should update the contract to be accurate.

Mistake 2: Three-day SSP waiting period

Remove this from all contracts and sick pay policies from 6 April 2026.

Mistake 3: "Paternity leave is available after 26 weeks of service."

Remove the qualifying service requirement from 6 April 2026.

Mistake 4: No mention of probationary period terms

From January 2027, your probation clause needs to be properly designed. Add the review process and extension right.

Mistake 5: Holiday pay calculated on basic salary only

Holiday pay should be calculated to reflect a worker's normal remuneration, including regular overtime and commission. If your contract calculates holiday pay on basic salary only for employees with regular overtime, this may be wrong.


FAQ: Employment Contract Requirements UK

Does every employee need a written contract?

Technically, the law requires a written statement of particulars, not a contract. But a contract serves the same purpose and is better practice. Every employee and worker is entitled to a written statement from day one.

Can I use a template I downloaded from the internet?

With caution. Many free templates are out of date or are not tailored to your specific business. An outdated template that still references the SSP waiting period or 26-week paternity qualifying period is now legally wrong. Have your template reviewed and updated.

What if an employee refuses to sign their contract?

The written statement of particulars is a legal right, not a choice for the employee. Provide it whether or not they sign. Keep a copy. If an employee refuses to sign, document that you provided it and when.

Can I change an employment contract after it has been issued?

Only with the employee's consent, or where the contract contains a valid variation clause. Unilaterally changing terms (for example, cutting pay without agreement) is a breach of contract and can lead to a constructive dismissal claim. Always consult before changing contract terms.

What happens with zero hours contracts under ERA 2025?

The ERA 2025 will introduce a right to guaranteed hours for workers who consistently work regular hours. The exact details are being consulted on and are expected to take effect in 2027. In the meantime, zero hours contracts remain lawful, but exclusivity clauses remain unenforceable.


Get Your Contracts Checked

If your employment contracts have not been updated since April 2026, they may be missing required information or contain clauses that are now incorrect under the ERA 2025.

EmployerKit Audit from £49. Upload your employment contract and get a specific report on what needs updating, with draft replacement clauses.


Last updated: April 2026

Get your contracts audited. From £49.

Spot ERA 2025 compliance gaps before they become tribunal claims.

Start the Audit

Frequently asked questions

Related guides