Free Employment Contract Template

Crafting a clear and legally sound employment contract is essential for hiring top talent and growing your company. Use our free UK employment contract template to help draft effective contracts that set clear expectations and protect both parties involved.

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Last Update 27 November 2024

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What is a Contract of Employment?

An employment contract is a formal, legally-binding document that outlines the terms of employment between an employer and an employee. It details the responsibilities, rights, and obligations of both parties.

This contract typically includes the employee’s role, salary, working hours, and other key details about the job.

A well-drafted employment contract can protect both the employer and the employee by providing a clear reference in case of disputes or misunderstandings.

Employment Contract sample

Before drafting your own employment agreement document, it can be helpful to review an example to understand the typical structure and content.

Our free contract of employment template below provides an example of how to format your draft and the key details you should include.

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Types of Employment Contracts in the UK

In the UK, various types of contracts cater to different working arrangements. Understanding these types is important for making sure that the employment agreement meets legal requirements and accurately reflects the nature of the employment relationship.

Full-time Employment Contracts

A full-time employment contract is typically used when an employee works a standard number of hours each week, usually 35 hours or more. This legal document outlines the employee's job role, salary, benefits, and other key terms.

Full-time employees are generally entitled to the full range of employment benefits, including paid leave, pensions, and sick pay.

Part-time Employment Contracts

Part-time employment contracts are designed for employees who work fewer hours than full-time staff, often less than 35 hours per week. The contract specifies the reduced working hours, salary, and any other relevant terms.

Despite working fewer hours, part-time employees may still be entitled to benefits and protections similar to those of full-time employees.

Fixed-term Employment Contracts

A fixed-term employment contract is used for employees hired for a specific period or project. This type of contract includes details about the duration of the employment, the reason for the fixed term, and any relevant conditions.

Fixed-term contracts are commonly used for temporary roles, such as maternity cover or seasonal work.

How to write an Employment Contract

Writing an employment contract involves several key steps to make sure it’s thorough and legally compliant:

  1. Identify the parties: Clearly state the names, addresses, and roles of both the employer and the employee to establish their identities.
  2. Include job details: Describe the employee’s job title, primary responsibilities, and work location to clarify the role and expectations.
  3. Specify terms of employment: Outline the start date, salary, working hours, and any other essential terms like probationary periods or performance reviews.
  4. Outline benefits and entitlements: Detail the employee’s benefits, including holidays, sick pay, pension schemes, and any additional perks.
  5. Detail notice periods: Specify the required notice period for termination by either party to manage expectations.
  6. Include confidentiality and other clauses: Describe any confidentiality agreements, non-compete clauses, and disciplinary procedures to protect sensitive information.

By clearly defining these elements, you can prevent misunderstandings and protect the interests of both employer and employee.

Employment Contract FAQs

Here, our experts offer some advice to employers regarding the use of employment contracts when hiring new talent.

Is it a legal requirement to have a Contract of Employment?

Technically, employment contracts are not a legal requirement when hiring in the UK.

However, employers are required to provide new employees with a written statement of employment particulars. This must be given to employees on or before their first day of work.

This written statement should include the main terms of employment, such as job title, salary, and working hours.

What should be included in a UK Contract of Employment?

A UK employment contract should generally include:

  • Job title and responsibilities: The role and duties of the employee.
  • Salary and payment details: Information on the salary, payment frequency, and any deductions.
  • Working hours: Details of the working hours and any flexibility.
  • Annual holiday entitlement: The number of paid leave days and any public holiday entitlement.
  • Pension details: Information on pension schemes and contributions.
  • Notice periods: The notice period required for termination by both employer and employee.
  • Disciplinary procedures: Procedures for handling grievances and disciplinary issues.

Does an employment contract have to be signed by both parties?

While it’s not a legal requirement for the employment contract to be signed by both parties, it’s strongly advisable to do so. A signed contract provides clear evidence of the agreed terms and conditions and can be useful in resolving any disputes that may arise.

Both parties should keep a copy of the signed contract for their records.

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Preview of your Employment Contract

EMPLOYMENT CONTRACT
This Employment Contract (the "Agreement") dated this ________ day of ________________, 20_____, BETWEEN:
EMPLOYER
_________
_________
(the "Employer")
EMPLOYEE
_________
______________________________
(the "Employee")
1. PURPOSE AND SCOPE:
It is the belief of the Employer that the Employee possesses those skills, qualifications and abilities necessary to contribute to and further the aims of the Employer's business.
Both the Employee and Employer accept the terms and conditions set forth within this Agreement.
IT IS HEREBY AGREED that, in recognition of the mutual benefits and obligations arising from the matters described above and embodied in this Agreement, the parties enter into this Agreement and agree as follows:
2. WRITTEN STATEMENT OF EMPLOYMENT
In compliance with Section 1 of the Employment Rights Act 1996, the specific terms and conditions of the Employee's employment are detailed in Appendix 1 of this Agreement.
3. START DATE AND DURATION
The Employee permanent full-time employment with the Employer will begin on the _________ (the "Start Date").
4. JOB DESCRIPTION AND TERMS
The Employee's initial position is _________.
The Employee agrees to work for the Employer under the terms outlined in this Agreement and will follow the Employer's instructions and guidance.
The Employee will perform the duties and responsibilities normally associated with this position and any other reasonable tasks as assigned by the Employer.
The Employer may modify the Employee's job title or duties as needed, provided the changes are reasonable and consistent with similar roles in the industry. Any significant changes to the Employee's role will require mutual agreement or comply with applicable legal notice periods.
The Employee agrees to comply with the Employer’s rules, policies, and procedures, including those governing work schedules, time off, and other terms of employment, as they may be updated from time to time.
The Employee represents that they are legally authorized to work in England.
5. COMPENSATION
The Employee's compensation under this Agreement ("Compensation") will consist of a wage at the rate of £_________ per hour.
Salary will be paid once per month throughout the duration of this Agreement. The employer may withhold any necessary taxes or deductions as required by law from the employee's paycheck or other forms of compensation.
Any additional compensation in the form of bonuses or incentives will be determined by the Employer and will not be considered a guaranteed part of the Employee's remuneration.
The Employer will reimburse the Employee for reasonable business expenses, as outlined in the company's expense policy, including but not limited to travel and entertainment expenses incurred on the Employer's behalf. Reimbursement will be processed within a reasonable timeframe following the submission of necessary documentation.
6. PENSION
The Employee shall be automatically enrolled in the pension plan detailed below: National Employment Savings Trust (NEST).
The pension scheme is detailed in the employee handbook, a copy of which will be provided to the Employee.
7. WORK LOCATION
The Employee's primary work location will be:
      _________
8. WORK SCHEDULE
The Employee’s standard working hours, including breaks, are as follows: _________
The Employee may be required to work overtime or outside of their standard working hours, as determined by the Employer and permitted by law, upon reasonable notice from the Employer to meet the business needs of the company.
9. ADDITIONAL BENEFITS
The Employee will be entitled to any additional benefits currently available, as outlined in the Employer's employment booklets, manuals, and policy documents, or as mandated by law.
The Employer retains the right to modify discretionary benefits at its sole discretion, without compensation, upon providing the Employee with 60 days' written notice. Any such changes will apply uniformly to all employees and will not specifically target individual employees.
10. ANNUAL LEAVE
The holiday year begins on January 1st and ends on December 31st of the same year (the "Holiday Year").
Throughout each Holiday Year, the employee is entitled to 5.6 weeks of paid annual leave, which will accrue proportionally. Bank and Public Holidays will be included in the calculation of the Employee's 5.6 weeks of paid annual leave.
Holidays will be scheduled by mutual agreement between the Employer and the Employee.
Unused vacation time will be paid out to the Employee upon termination of employment.
11. ILLNESS AND INJURY
In case of illness or injury preventing the Employee from fulfilling their duties, the Employee must inform the Employer via the Employee's supervisor of the reason for the Employee's absence before 9 AM. If the absence continues for more than seven consecutive days, including non-working days, the Employee must provide a medical certificate to the Employer.
During this absence, the Employer will only provide the Employee with the minimum statutory sick pay as outlined in the Social Security Contributions and Benefits Act 1992, or any subsequent legislation. No additional payments will be made.
Statutory sick pay will be calculated based on the Employee's regular working days, which are as follows:
12. DISCIPLINARY POLICY
The Company's disciplinary policy, which may be amended from time to time, applies to all employees. A copy of the policy is available in the employee handbook and will be provided to the Employee or made available to the Employee upon request.
This Agreement and the Company's disciplinary procedure are intended to complement each other. Should a conflict arise, the provisions of this Agreement will govern.
13. GRIEVANCE POLICY
The Employer's grievance procedure, which may be updated periodically, applies to the Employee. The procedure is detailed in the employee handbook and will be provided to the Employee within 28 days of the Commencement Date or made available upon request.
14. DUTY TO DEVOTE FULL TIME
The Employee commits to working exclusively for the Employer on a full-time basis as described in this Agreement.
15. CONFLICT OF INTEREST
The Employee acknowledges that any business opportunity related to or similar to the Employer's current or potential business, which comes to the Employee's attention during employment, belongs to the Employer. This includes, but is not limited to, opportunities in the same or related fields. The Employee must disclose any such opportunity to the Employer and may not pursue it without written consent, except for personal investments in less than 5% of a company's equity, established family businesses, real estate, or publicly traded stocks and bonds.
The Employee agrees not to engage in any business activities, directly or indirectly, that might conflict with the Employer's interests during their employment. Any such activities require prior written approval from the Employer.
16. CONTRACTUAL AUTHORITY
Unless explicitly stated otherwise in this Agreement, the Employee cannot make contracts or commitments on the Employer's behalf without written approval from the Employer.
17. BUSINESS CLOSURE TERMINATION
Regardless of any other terms or conditions stated or implied in this Agreement, if the Employer decides to stop operating its business at the location where the Employee works, the Employer may, at its sole discretion and as allowed by law, terminate this Agreement. The termination will take effect on the last day of the month in which the Employer ceases operations at that location, as if that day had originally been designated as the Termination Date of this Agreement.
18. EMPLOYMENT TERMINATION
If there is just cause for termination, the Employer may terminate the Employee's employment without notice, in accordance with the law.
The Employee and the Employer agree that the minimum notice required by law constitutes reasonable and sufficient notice for termination of employment by the Employer.
The Employee must give one week's notice to terminate this employment. However, if the Employee actively participates in the training of a replacement, the notice period may be shortened to enable the Employer to find and train a suitable successor.
The Termination Date set by either the Employee or the Employer may fall on any day of the month. On that date, the Employer will promptly pay the Employee any outstanding remuneration, including any accrued annual leave and banked time, if applicable, calculated up to the Termination Date.
After notice of termination has been given by either party for any reason, the Employee and the Employer agree to continue fulfilling their duties and obligations under this Agreement diligently and in good faith until the notice period ends. The Employer may not alter the remuneration or any other terms or conditions of this Agreement from the time the termination notice is given until the end of the notice period.
19. REMEDIES
If the Employee breaches or threatens to breach any part of this Agreement, the Employer can seek a permanent injunction to stop the breach, in addition to any other legal or equitable remedies the Employer may have. The injunction can apply to the Employee and anyone acting on their behalf.
20. SEPARABILITY
The Employer and the Employee agree that if any part of this Agreement is found to be invalid, illegal or unenforceable, that part will be considered separate from the rest of the Agreement. The remaining parts will continue to be valid and enforceable. If necessary, the invalid part will be changed or replaced to make it valid and enforceable while still reflecting the original intentions of the parties.
21. COMMUNICATIONS
All notices, deliveries, requests, demands or other communications must be delivered in person, by a designated agent, or by prepaid mail to the addresses listed below. If no other address is provided in writing, these addresses will be considered official:
      Employer:

           Name: _________
           Address: _________
           Phone: _________
           Email: _________
      Employee:

           Name: _________
           Address: ______________________________
           Phone: ________________________________
22. AMENDMENT
Any changes to this Agreement, or any additional obligations taken on by either party, must be made in writing and signed by both parties or their authorized representatives.
23. APPLICABLE LAW
This Agreement is governed by and will be interpreted according to the laws of England.
24. DEFINITIONS
For the purposes of this Agreement, the following terms will be defined as follows:
      a. "Termination Date" is the last day of employment as stated in this Agreement or a later notice from either the Employee or the Employer. Please note that some parts of this Agreement will continue to apply even after the Termination Date.
25. BASIC TERMS
Timely performance is essential under this Agreement.
The headings included in this Agreement are provided for reference only and do not affect the interpretation of its terms. Words used in the singular or plural form shall be interchangeable, as shall words used in the masculine or feminine.
Either party's failure or delay in exercising any of its rights under this Agreement does not constitute a waiver of that right, and a single or partial exercise of a right does not prevent further exercise of that right or other rights.
This Agreement will be binding on and benefit the heirs, executors, administrators, successors, and assigns of both the Employer and the Employee.
This Agreement may be executed in multiple copies. Signatures on facsimile copies are legally binding and considered original signatures.
If, at the time this Agreement is executed, a prior employment agreement between the parties remains in effect, then, as a condition for entering into this Agreement and in consideration of the mutual benefits received, which are hereby acknowledged as sufficient, this Agreement will supersede any and all prior employment agreements between the Employer and the Employee. Any duties, obligations, or liabilities arising from any pre-existing employment agreement will become void and unenforceable upon the execution of this Agreement.
This Agreement is the complete and final agreement between the parties, superseding any prior agreements, whether oral or written. The parties confirm that they have not made any promises or representations about this Agreement that are not included in the written document.
FOR WITNESS, the parties have duly signed and sealed this Agreement on this ________ day of ________________, 20_____.

_______________________________
_________

_______________________________
_________
APPENDIX 1: WRITTEN STATEMENT OF EMPLOYMENT
1. EMPLOYER INFORMATION

      Employer Name: _________.

      Employer Address: _________.
      Work Location: _________.
2. EMPLOYEE INFORMATION

      Employee Name: _________.

      Employee Address: ______________________________.
3. EMPLOYMENT INFORMATION

      Job Title: _________.

      Job Description: ____________________________________________________________.

      Date Employment will start: _________.

      Employment is: permanent full-time.

      Date Continuous Employment began or will begin: _________.

      Normal hours of work are: _________.
      Annual leave and pay: The Holiday Year commences on the 1st day of January and runs for one year. The Employee will be entitled to 5.6 weeks of paid annual leave, such entitlement accruing on a pro rata basis, with Bank and Public Holidays to be included in the calculation of the Employee's 5.6 weeks of paid annual leave.
      Payment Details: The Employee will be paid a wage at the rate of £_________ (pounds) per hour.
      Pay Period: The Employee will be paid: once per month.
4. ADDITIONAL TERMS
      Sick leave and pay: The Employee will not receive any contractual sick pay for days taken as sick leave.
      Pension scheme details: The Employee will be automatically enrolled in a pension scheme, the specifics of which are set out in the contract of employment and the employee handbook, which will be provided or is available to the Employee.
      Notice of termination details: The Employee is entitled to at least the minimum notice required by law. The Employee will give the Employer one week of notice before quitting.
      Disciplinary Policy: The Employer's Disciplinary Policy is outlined in the employee handbook, which is available upon the Employee's request.
      Grievance Policy: The Employer's Grievance Procedure is outlined in the employee handbook, which is available at the Employee's request.
      Collective Agreement: No collective agreement applies to this employment.
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