Creating Employment Contracts
A good employment contract protects both you and your employee. It sets out the terms of the working relationship clearly, reduces the risk of misunderstandings, and gives you a solid foundation if things ever go wrong. This pathway explains what must be in a contract, what you should include, and how to get it right without spending a fortune on legal fees.
Since April 2020, all employees and workers must receive a written statement of employment particulars on or before their first day of work. This is a legal requirement, not optional.
The written statement must include: the employer's and employee's names, the start date, the rate of pay and how often it is paid, the hours of work, the location of work, the job title or a brief description of the work, holiday entitlement, sick pay arrangements, notice periods, and details of any pension scheme.
Additional information must be provided within two months of the start date: details of any collective agreements, any training entitlement, and information about disciplinary and grievance procedures.
Failing to provide a written statement is a breach of employment law. An employee can bring a claim to an Employment Tribunal, and if they succeed in another claim, the tribunal can award additional compensation for the failure to provide a statement.
Good to know
- Provide the written statement on day one — do not wait until the two-month deadline
- Keep a signed copy of the contract for your records
- Update the contract whenever the terms change — do not rely on verbal agreements
Watch out for
- Assuming a verbal agreement is sufficient — it is not, and it is very hard to enforce
- Using a template without checking it complies with current UK employment law
- Not getting the employee to sign and return the contract
Ready for the next step?
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