How to Write an Employment Contract UK: Employer Guide

Last updated: July 2026

Priya runs a small dental practice in Leicester. Last March, she took on two new receptionists using a contract template she had downloaded in 2023. Three months in, one of them called in sick. Priya's contract said SSP did not kick in until day four. Under UK law as of April 2026, that clause was already wrong. She had to back-pay two weeks of SSP and quietly hope the receptionist did not look too closely at the rest of the document.

Most employment contract problems are not dramatic. They are quiet. A clause that used to be fine no longer is. An entitlement that was discretionary is now a statutory right. The contract sits in a drawer until something goes wrong, and then you are unpicking it under pressure.

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 already in force, and the Autumn 2026 changes that are closer than most employers realise.

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.

What Does a Legally Compliant UK Employment Contract Include?

A UK employment contract must deliver a written statement of employment particulars on or before day one of employment, covering pay, hours, holiday, sickness, notice, pension, training, and disciplinary procedures. An employment contract goes further, adding terms for confidentiality, intellectual property, and restrictive covenants. Under the Employment Rights Act 2025, several day one rights are already in force and more arrive in Autumn 2026. EmployerKit's review of common contract templates finds the most frequently missed update is the SSP waiting period clause that was abolished in April 2026 and still appears in the majority of pre-2026 downloads.

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.

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.

Step 2: Write the Principal Statement

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 contracts before that deadline arrives.

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 is 5.6 weeks per year: 28 days for a full-time employee including bank holidays.

Sickness and SSP

From April 2026, Statutory Sick Pay (SSP) is payable from the first day of sickness at £123.25 per week. The previous three-day waiting period has been abolished under the Employment Rights Act 2025. If your contract still references a waiting period for SSP, that clause is now wrong. Remove it.

Notice Periods

State the notice the employee must give, and the notice the employer must give. The statutory minimum from the employer is one week per year of service, up to a maximum of 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 unfair dismissal qualifying period drops to six months on 1 January 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, and one of the most frequently missed items in older templates)
Terms relating to disciplinary and grievance procedures, or a reference to a separate document

Step 3: Add 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.

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 the 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 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 six-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 for overpayments or unreturned equipment, include explicit contractual authority.

Step 5: Check Your Contract Against ERA 2025

Before finalising any contract in 2026, use this checklist. Several changes are already in force. More are coming.

| Clause to check | What changed | Status | |-----------------|-------------|--------| | SSP waiting period | Abolished. SSP payable from day one at £123.25/week | In force April 2026 | | Paternity leave qualifying period | Abolished. Day one right | In force April 2026 | | Parental and adoption leave qualifying period | Abolished. Day one right | In force April 2026 | | Sexual harassment whistleblowing | Added as a qualifying disclosure | In force April 2026 | | Zero hours contract terms | Guaranteed hours right incoming | Autumn 2026 | | Flexible working clause | Default right strengthened | Autumn 2026 | | Variation and dismissal clauses | Fire and rehire restrictions | Autumn 2026 | | Probationary period terms | Unfair dismissal qualifying period cut to six months | 1 January 2027 |

Sources: Employment Rights Act 2025 (c.36) and ACAS ERA 2025 employer guidance.

Getting Your Contracts Ready for Autumn 2026

Three significant changes land later this year under the Employment Rights Act 2025. If you are issuing or reviewing contracts now, build them to be compliant for what is coming, not just what is already in force.

Guaranteed Hours for Zero Hours Workers

From Autumn 2026, zero hours workers who work regular hours over a qualifying reference period gain the right to be offered a contract reflecting those hours. You will not be required to give them full-time employment, but you must offer a contract that accurately reflects their typical working pattern.

What this means in practice:

Audit your current zero hours arrangements now. Workers with consistent patterns need to be identified before the deadline
Your contract wording should clearly distinguish between genuinely variable hours and what is effectively a fixed pattern on a zero hours label
Workers on genuinely variable hours, such as seasonal or on-call cover, remain outside the requirement

See the full guide on guaranteed hours for employers in 2026 for the qualifying period rules and what counts as a regular pattern.

Fire and Rehire Restrictions

From Autumn 2026, dismissing an employee and re-engaging them on less favourable terms becomes automatically unfair dismissal in most cases. The Employment Rights Act 2025 restricts the practice to genuine last-resort situations, only after meaningful prior consultation.

If any of your internal processes currently treat dismissal as a negotiating tool for contract changes, that approach needs to change before Autumn 2026. The consultation requirement puts the burden on the employer to demonstrate good faith before any dismissal route is considered. See the fire and rehire restrictions guide for 2026 for the full detail on the new unfair dismissal category.

Flexible Working as a Strengthened Default Right

Employees already have a day one right to request flexible working. From Autumn 2026, the grounds on which employers can refuse become more constrained and the process tighter. If your contracts or internal policies describe roles as inherently full-time or office-based without operational justification, review that language before the deadline. See the flexible working employer guide for 2026.

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 in older contracts.

Not planning for Autumn 2026. Contracts issued today will be in use when guaranteed hours and fire and rehire restrictions take effect. Write them to be compliant both now and when those changes land.

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.

For a full overview of your hiring obligations, visit our Hiring and Onboarding hub.

Getting Your Contract Checked

The steps above will get you to a compliant contract. But compliance is a floor, not a ceiling. Contracts that actually protect your business are specific, current, and written for your situation, not a generic download last updated in 2023.

If you want your existing contracts reviewed against ERA 2025 requirements, the EmployerKit Audit checks your documents against current law and flags exactly what needs updating. Run the audit at employerkit.com/tools/employerkit-audit.

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?

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.

Q: Do I need to update zero hours contracts before Autumn 2026?

A: Yes. From Autumn 2026, zero hours workers gain the right to be offered a contract reflecting their regularly worked hours. Audit your current arrangements now and identify workers with consistent patterns. Genuinely variable arrangements remain permitted, but blanket zero hours contracts for workers on regular schedules will need updating before the deadline.

Q: What are the fire and rehire restrictions coming in Autumn 2026?

A: Dismissing an employee and re-engaging them on worse terms becomes automatically unfair dismissal in most cases from Autumn 2026. The Employment Rights Act 2025 restricts the practice to genuine last-resort situations following meaningful consultation. If you need to change contract terms, the correct route is consultation and agreement, not threatened dismissal.

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.

Sources and further reading

Official guidance and legislation referenced in this guide:

This guide is general information for UK employers, not legal advice. Employment law changes and individual circumstances vary. For decisions on specific situations, take advice from a qualified employment law professional.