How to write an employment contract

It's your legal obligation as an employer to provide each employee with a written employment contract.

Within two months of the date of the start of employment, you must provide your new employee with either a full time or part time employment contract.

Acas states that "simple misunderstandings over what is or what is not in a contract are one of the main causes of employment tribunal claims." So, it’s crucial you get to grips with your contracts and documentation. Need an extra hand? Our Croner employment law experts are on hand to give you top-quality advice, whenever you need it. Contact us on 0808 501 6651 to get FREE advice now.

Writing a contract of employment

Once you have a commitment to producing a clear and legally compliant employment contract, it’s a good idea to break the process down into sections. This way, you can prevent feeling overwhelmed and do everything by the book.     

There are terms and conditions that are always present in every employment contract. These include:

• Basic job information - Key information relating to the role, such as job title, department, department head, etc.
• Pay and benefits – Information such as annual salary, raises, bonuses, incentives, and any additional benefits.
• Holiday – Information such as sick leave, family emergencies, unpaid leave, flexible hours.
• Employment type – Define whether the individual is an employee, a worker, a contractor, or self-employed.
• Employment period – Define whether they are permanently employed and detail the number of hours they’re expected to work, including working from home, working outside the office, and working weekends/nights.
• Privacy policy – If your workplace uses varied communication methods, then a privacy policy needs to be put in place, including the dos and don’ts of social media and email usage in the office.
• Termination – Be transparent on how much notice period the employee is entitled to in the case of a termination, and whether a written notice is needed too.  

How to write an employment contract lies in the details. So, it’s wise to double check your employment contracts and make sure everything is fully legal and clear. Always make sure you’re considering any gaps you may have left out too, such as terms left out for being ‘obvious’ or ones you wouldn’t think to include. Even though they may appear to both you and the employee as ‘going without saying’, so to speak, it could be a crucial part of their role and must be included within the employment contract. A good example of this is the requirement of a driving license if the employee is a driver.

You should also consider the specifics of the role, such as any significant health and safety risks involved, such as if the employee is operating machinery. You should state within your employment contract your commitment to health and safety in the workplace and outline the measures you have in place to combat any hazards and risks.  

Contract of employment template for UK employers

A basic template for your employment contracts can include (in order):

• Names (employee, employer, department head, etc.)
• Employment start date
• Job title and description
• Workplace details
• Working hours (maximums of 48 hours per week, overtime, etc.)
• Probationary period
• Salary deductions
• Employee expenses (travel, business, etc.)
• Holiday entitlement
• Sickness absence (sick pay entitlement, policy for sickness absence, etc.)
• Termination (notice needed, notice period, etc.)
• Grievance and disciplinary process
• Retirement (procedure for voluntary retirement)
• Severability clause
• Prior agreements (statement that all prior agreements are invalid upon signing contract)
• Jurisdiction (which law applies? English, Welsh, Scottish, etc.)

Our Croner expert support

At Croner, our employment law experts are ready and waiting for your call. We’ve been in the business for over 80 years, so we’ve seen it all. Got a question about contracts of employment? Give our expert HR consultants a call on 0808 501 6651 today.