How to Write an Employment Contract UK: Complete Employer Guide

Last updated: April 2026

Writing an employment contract is one of the first things you need to get right when hiring in the UK. Get it wrong and you risk tribunal claims, confusion over terms, and a contract that does not reflect the law as it stands today.

This guide walks you through how to write an employment contract that is legally compliant in 2026, covering the written statement of particulars, the Employment Rights Act 2025 changes, and practical advice on structuring the document to protect your business.

If you already have contracts in place but have not updated them recently, start with our guide on employment contract requirements in the UK to check what might be missing.

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How to Write an Employment Contract UK: What the Law Requires

UK employment law does not technically require a "contract" in the traditional sense. What it requires is a written statement of employment particulars, governed by Section 1 of the Employment Rights Act 1996.

Since April 2020, this must be provided on or before the employee's first day of work. This applies to all employees and all workers (including zero hours workers).

Most employers use a formal employment contract to satisfy this requirement, which is the better approach. A contract covers everything the written statement requires, plus additional protective terms (restrictive covenants, intellectual property, confidentiality).

The key change for 2026: the Employment Rights Act 2025 has introduced several new day one rights and modified existing entitlements. If your contract template predates April 2026, it almost certainly needs updating.

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Step 1: Gather the Information You Need

Before drafting, collect the following for each new hire:

• Full legal name and address of the employee
• Your company name and registered address
• Job title and a brief description of the role
• The date employment begins
• The date continuous employment begins (if different, for example where the employee transfers under TUPE)
• The place of work, or confirmation of multiple locations
• Whether the employee will work outside the UK for more than one month
• Any collective agreements that apply

Getting this together before you start writing saves time and reduces the risk of issuing an incomplete contract.

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Step 2: Write the Principal Statement (Day One Document)

The law splits the written statement into two parts. The first, the "principal statement", must be provided as a single document on or before the first day of work.

Pay and Benefits

• The rate of pay, or the method of calculating pay
• Payment intervals (weekly, monthly, four-weekly)
• Any non-cash benefits (company car, private medical insurance, share options)

Be specific. "Competitive salary" is not a pay term. State the actual figure, the frequency, and the payment method.

Hours of Work

• Normal working hours and the days the employee is required to work
• Whether hours or days may be variable, and if so, how they vary

Under the ERA 2025, zero hours workers will gain the right to guaranteed hours from autumn 2026. If you are hiring on a zero hours basis now, include clear wording about the current arrangement and be prepared to update.

Holiday Entitlement

• Total annual leave entitlement, including whether it includes or is in addition to bank holidays
• Sufficient detail for the employee to calculate their entitlement precisely

The statutory minimum remains 5.6 weeks (28 days for full-time employees including bank holidays).

Sick Pay and Absence

From April 2026, Statutory Sick Pay (SSP) is payable from the first day of sickness. The previous three-day waiting period has been abolished. If your contract still references a waiting period for SSP, it is now wrong.

Notice Periods

• The notice the employee must give, and the notice the employer must give

Statutory minimum from the employer is one week per year of service, up to 12 weeks.

Pension, Probation, and Training

• Reference to your workplace pension scheme and auto-enrolment
• Any probationary period, its duration, and conditions. This matters given the upcoming day one unfair dismissal rights expected in 2027. See our guide on probationary periods under ERA 2025
• Any mandatory training the employer provides and who bears the cost (a requirement since April 2020, frequently missed in older templates)
• Terms relating to disciplinary and grievance procedures, or a reference to a separate document

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Step 3: Write the Supplementary Statement

The "supplementary statement" can be provided within two months of the start date. Most employers include everything in one contract, which is simpler. It covers any remaining pension or training details, collective agreements, and additional terms.

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Step 4: Add Protective Clauses for Your Business

The legal minimum covers what the employee is entitled to know. A good contract also protects your business.

Confidentiality. Define what counts as confidential information and restrict disclosure during and after employment.

Intellectual property. If the employee creates anything in their role, assign IP rights to the employer explicitly. Under the Patents Act 1977 and Copyright, Designs and Patents Act 1988, work created in the course of employment generally belongs to the employer, but an explicit clause removes ambiguity.

Restrictive covenants. Non-compete, non-solicitation, and non-dealing clauses. These must be reasonable in scope and duration to be enforceable. A 12-month non-compete for a junior admin role will not hold up. A 6-month non-solicitation for a senior salesperson might. An unenforceable covenant gives you no actual protection.

Garden leave. Allows you to require the employee to stay at home during notice while remaining employed and paid. Useful for senior roles with access to sensitive information.

Deductions from wages. Under Section 13 of the ERA 1996, deductions are unlawful unless authorised by statute, the contract, or prior written consent. If you need the ability to deduct (overpayments, unreturned equipment), include explicit contractual authority.

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Step 5: Structure the Document Clearly

A well-structured contract is easier to understand and easier to enforce:

1. Parties and definitions
2. Commencement and continuous employment
3. Job title and duties
4. Place of work
5. Pay (salary, frequency, method)
6. Hours of work
7. Holiday entitlement
8. Sickness and absence
9. Pension
10. Notice periods
11. Probationary period
12. Training
13. Confidentiality
14. Intellectual property
15. Restrictive covenants
16. Disciplinary and grievance procedures (or handbook reference)
17. Data protection (UK GDPR statement)
18. Governing law and jurisdiction
19. Signatures and date

Keep the language plain. If a clause requires a law degree to parse, rewrite it.

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Step 6: Review Against ERA 2025 Changes

Before finalising any contract in 2026, check against these changes already in force:

• SSP from day one (April 2026): Remove any reference to a three-day waiting period
• Enhanced paternity leave as a day one right (April 2026): Remove qualifying periods
• Enhanced parental and adoption leave as day one rights (April 2026): Remove qualifying periods
• Sexual harassment as qualifying whistleblowing disclosure (April 2026): Update whistleblowing policy references

And prepare for changes coming later:

• Zero hours contract restrictions (autumn 2026): Review zero hours contracts
• Flexible working as default right (autumn 2026): Update flexible working clauses
• Fire and rehire restrictions (autumn 2026): Review variation clauses
• Day one unfair dismissal rights (2027): Align probationary periods with the expected statutory framework

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Common Mistakes When Writing Employment Contracts

Using a generic template without customisation. Every business is different. A downloaded template is a starting point, not a finished product.

Forgetting the day one deadline. The written statement must be provided on or before the first day. Not after probation. Day one.

Not updating for ERA 2025. Contracts referencing SSP waiting periods, paternity leave qualifying periods, or old collective redundancy caps are now wrong.

Vague pay terms. "Salary: competitive" is not compliant. State the actual figure.

Overly aggressive restrictive covenants. A two-year worldwide non-compete for a customer service representative is unenforceable.

Missing training information. Since April 2020, the written statement must include mandatory training details. One of the most commonly missed items.

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Right to Work Checks

Before an employee starts work, you must conduct a right to work check under the Immigration, Asylum and Nationality Act 2006. Failing to do so can result in civil penalties of up to £60,000 per illegal worker. See our full guide on right to work checks for employers.

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FAQ: How to Write an Employment Contract UK

Q: Do I legally have to provide a written employment contract?

A: You must provide a written statement of employment particulars from day one. While a contract can exist verbally or be implied by conduct, using a written contract to deliver the required particulars is best practice. Failing to provide the written statement can result in an award of two to four weeks' pay at tribunal under Section 38 of the Employment Act 2002.

Q: Can I use an employment contract template UK businesses offer online?

A: You can use a template as a starting point, but you must customise it and check it reflects current law. Many templates predate the ERA 2025 changes, are missing training information, or still reference the SSP waiting period abolished in April 2026.

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

A: The written statement is a legal requirement under Section 1 of the ERA 1996, setting out key employment terms. An employment contract is the broader agreement, including additional terms like confidentiality, IP, and restrictive covenants. Most employers combine both into a single document.

Q: What should I do if an employee starts before the contract is ready?

A: You are already in breach of the day one requirement. Provide it immediately. A delay does not remove your obligation, and the employee can bring a tribunal claim at any time during employment or within three months of leaving.

Q: How do I handle contract changes after the ERA 2025?

A: You cannot unilaterally change an employment contract. You need the employee's agreement. Under the ERA 2025, "fire and rehire" practices face significant restrictions from autumn 2026. Consult with the employee, explain the business reason, and seek written consent.

Q: Do I need a solicitor to write an employment contract?

A: For straightforward roles with standard terms, many employers write their own contracts using a reputable template. For senior hires with complex bonus structures or significant restrictive covenants, a solicitor review (typically £200 to £500) is worthwhile. That is far less than the cost of an unenforceable clause at tribunal.

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Get Your Contracts Checked

Need to check if your employment contract is ERA 2025 compliant? The EmployerKit Audit analyses your documents against current law and flags exactly what needs updating. From £49. Visit employerkit.com/tools/employerkit-audit.

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This article is for general information only and does not constitute legal advice. Employment law is subject to change. Always check the latest legislation and consider taking professional advice for complex situations.