An employment contract is the foundation of every working relationship. It defines the rights, responsibilities, and obligations of both employer and employee and getting it right from the outset can prevent costly disputes down the line.
Whether you are an employer hiring your first member of staff or an employee seeking to understand your contractual rights, this guide explains everything you need to know about employment contracts in the UK. You can also download a free employee contract template UK directly from Draftflow fully compliant with current UK employment law.
An employment contract also referred to as a contract of employment, employee agreement, or job contract is a legally binding agreement between an employer and an employee. It sets out the terms and conditions under which the individual is employed.
Under the Employment Rights Act 1996, all employees are entitled to receive a written statement of their main terms of employment. Since April 2020, this written statement must be provided on or before the employee’s first day of work. Draftflow’s employment contract template UK is designed to meet these requirements from day one.
Key legislation: The Employment Rights Act 1996, as amended by the Good Work Plan (April 2020), requires employers to provide a written statement of employment particulars from day one of employment.
UK employment law specifies a minimum set of particulars that must be included in a written employment statement. Draftflow’s employee contract template UK covers all of the following mandatory requirements:
In addition to the above statutory minimum, a comprehensive employment contract template will typically include clauses covering sick pay, disciplinary procedures, confidentiality obligations, and restrictive covenants.
➜ Get started immediately: Download Draftflow’s free employment contract template UK all mandatory clauses included.
A professionally drafted employment agreement template goes beyond the statutory minimum. The following clauses are standard in most UK employment contracts:
This clause confirms when employment begins and whether any previous service with the employer (or an associated employer) counts towards continuous employment relevant for statutory rights such as unfair dismissal.
Clearly define the employee’s role. A well-drafted duties clause includes a ‘flexibility’ provision, allowing the employer to assign reasonable alternative duties when required, without breaching the contract.
Specify the salary or hourly rate, pay frequency, and method of payment. If the role involves commission, bonuses, or overtime, these should be clearly defined including whether they are contractual or discretionary.
Include normal working hours and any expectation to work beyond these. If the employee is subject to the 48-hour working week limit under the Working Time Regulations 1998, include an opt-out provision if required.
Most employers include a probationary period of three to six months, during which shorter notice periods apply and performance is formally assessed.
The statutory minimum in the UK is 5.6 weeks (28 days for full-time employees), inclusive of bank holidays. Employers may offer more. Specify the holiday year period and the process for requesting and approving leave.
Set out the procedure for reporting absences and the entitlement to statutory sick pay (SSP) and any enhanced company sick pay above the statutory minimum.
A confidentiality clause protects the employer’s sensitive business information, trade secrets, and client data both during and after employment.
Post-termination restrictions such as non-compete, non-solicitation, or non-dealing clauses must be reasonable in scope, duration, and geography to be enforceable. Poorly drafted restrictive covenants are routinely struck down by courts.
Specify the notice period required from both parties. The statutory minimum under the Employment Rights Act 1996 is one week per year of continuous service (up to 12 weeks), but contractual notice is often longer.
A standard job contract sample UK follows a structured format. Below is an outline representing industry best practice:
EMPLOYMENT CONTRACT Between: [Employer Name] (‘the Employer’) and [Employee Name] (‘the Employee’) 1. Commencement Date 2. Job Title and Duties 3. Place of Work 4. Remuneration 5. Working Hours 6. Probationary Period 7. Holiday Entitlement 8. Sickness Absence 9. Confidentiality 10. Restrictive Covenants 11. Termination and Notice 12. Disciplinary and Grievance Procedures 13. Data Protection 14. Entire Agreement Signed: _________________ [Employer Representative] Signed: _________________ [Employee] Date: _________________
Draftflow’s employment contract template UK provides a complete, editable version of this structure formatted for immediate use by UK employers of all sizes.
Not all work contracts templates are the same. The type of contract you use will depend on the nature of the working arrangement:
The most common type of employment contract. The role is ongoing with no fixed end date. Employees on permanent contracts acquire full statutory rights (including unfair dismissal protection) after two years of continuous service.
Used where employment is for a defined period for example, to cover maternity leave or a project. Fixed-term employees have the same statutory rights as permanent employees and cannot be treated less favourably.
Zero hours contracts do not guarantee minimum hours of work. Whilst lawful in the UK, employers must be careful not to misuse them particularly given recent government consultations on worker rights. Employees on zero hours contracts retain certain statutory rights, including the right to the National Minimum Wage.
➜ Need all three contract types? Draftflow’s employment contract template UK covers permanent, fixed-term, and probationary arrangements.
Drafting your own employment agreement template UK without proper guidance can lead to costly mistakes. The following are among the most frequently encountered errors:
Employment tribunal claims for breach of contract are among the most common in the UK. A well-drafted employment contract is your first line of defence.
If you are a sole trader or business owner, having the right employment contracts in place is just one part of protecting what you have built. Draftflow also provides a free will template UK ensuring your personal and business assets are distributed according to your wishes.
Draftflow’s employment contract template UK is designed for use by UK employers across a wide range of industries. It includes:
Whether you are an HR professional, a small business owner, or a sole trader taking on your first employee, Draftflow’s employee contract template UK provides the professional foundation you need.
Yes. A verbal employment contract can be legally binding, but it is extremely difficult to enforce due to the absence of written evidence. Employers are legally required to provide a written statement of employment particulars from day one.
Yes, provided the template complies with current UK employment legislation. Draftflow’s free employment contract template UK reflects the requirements of the Employment Rights Act 1996 and includes all mandatory particulars.
In UK law, the terms are largely interchangeable. Both refer to the legally binding document that governs the relationship between employer and employee.
Generally, no not without the employee’s consent. Unilaterally changing contractual terms may constitute a breach of contract or, in some cases, constructive dismissal.
Not necessarily. Many employers use professionally drafted templates for straightforward roles. Draftflow’s employer contract template is structured for immediate use without legal expertise. However, professional advice is recommended for senior appointments or complex remuneration structures.
Yes. A will ensures your business assets, shares, and personal estate are distributed according to your wishes. Draftflow provides a free will template UK alongside its employment documentation.
Ready to protect your business and your employees? Download Draftflow’s free employment contract template UK fully compliant with UK employment law and ready to use today.
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