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Employment Contract

Every UK employer must give employees a written statement of particulars from day one of employment, under section 1 of the Employment Rights Act 1996 (as amended by the Employment Rights (Employment Particulars and Paid Annual Leave) (Amendment) Regulations 2018). This template provides a full contract of employment that satisfies those statutory requirements and adds commercially standard clauses on confidentiality, restrictive covenants, notice, PILON and data protection. It is suitable for full-time permanent employees in England and Wales.

When do you need this?

Typical use cases

  • Hiring your first UK employee as a growing startup
  • Standardising employment contracts across a small team
  • Formalising an existing informal arrangement into a written contract
  • Onboarding a senior hire with restrictive covenants
What the contract includes

The contract covers

Statutory written particulars under s.1 Employment Rights Act 1996
Employer and employee identification with company number
Job title, department and start date
Salary, payment method and salary review
Working hours consistent with the Working Time Regulations 1998
Holiday entitlement (default 28 days inclusive of bank holidays)
Statutory Sick Pay reference
Auto-enrolment pension under the Pensions Act 2008
Notice period with statutory minimum under s.86 ERA 1996
PILON clause capped at basic salary
Confidentiality obligations that survive termination
Optional restrictive covenant (none / 3 / 6 / 12 months)
UK GDPR / Data Protection Act 2018 note

Legal basis

This template is drafted under English law and reflects the Employment Rights Act 1996 (particulars, notice, unfair dismissal), the Working Time Regulations 1998 (hours, rest, holiday), the Equality Act 2010 (non-discrimination), the Pensions Act 2008 (auto-enrolment), and the UK GDPR / Data Protection Act 2018. It does not address Scottish-law variations, executive service agreements, or highly regulated sectors (financial services, healthcare, aviation) where sector-specific rules apply.

Questions about employment contract

Frequently asked questions

What is the statutory minimum notice period?
Under s.86 of the Employment Rights Act 1996, the statutory minimum notice from employer to employee is one week for each complete year of service (up to a maximum of 12 weeks after 12 years). From employee to employer, the statutory minimum is one week once the employee has been continuously employed for one month. The contractual notice in this template is a floor above the statutory minimum, whichever is greater.
Are restrictive covenants enforceable in the UK?
Post-termination restrictive covenants are enforceable only if they go no further than is reasonably necessary to protect the employer's legitimate business interests — typically confidential information, customer connections and workforce stability. Duration matters: 3–6 months is usually defensible for most roles; 12 months requires stronger justification (senior executives, unique client relationships). Overly broad covenants risk being struck down entirely.
How long can a probationary period last?
There is no statutory cap on probation length in the UK. Six months is common for professional roles, extendable to 9–12 months for senior positions. However, unfair dismissal protection generally requires 2 years' continuous service, so the practical value of a long probation is limited — for most cases, dismissal within the first 2 years does not attract standard unfair dismissal claims regardless of whether probation has ended.
Do I need to auto-enrol the employee in a pension?
Yes. Under the Pensions Act 2008, all UK employers must auto-enrol eligible workers (aged 22 to State Pension age, earning above the earnings trigger, currently £10,000) into a qualifying workplace pension scheme, contribute at least 3% of qualifying earnings, and process opt-outs correctly. The template flags this obligation; you must set up a scheme (e.g. Nest, The People's Pension) separately.

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