In the UK, employers are legally required to provide all employees with a written statement of employment particulars under the Employment Rights Act of 1996.

There are two parts to this statement: the principal statement must be issued to the employee on the first day of their employment, and the wider statement within two months from their start date.

Many employers decide to do this in the form of a legally binding employment contract, as a contract will clearly state the terms of an employment agreement and can help prevent disputes down the line.

But how do you ensure your employment contracts are fair and legally compliant? We’ve taken over 70 years of employment contract law advice experience from our team, and collated everything you need to know.

Why are employment contracts so important?

Employment contracts are essential for any business, as they outline a new employee’s role and responsibilities, while also providing legal protection under UK employment contract law for both employer and employee by stating the agreed terms of employment.

Covering everything from duties to working hours, the information within an employment contract can help prevent any misunderstandings and disputes between the employee and employer.

A well-written employment contract also shows a new employee that you’ve taken the time and effort to put fair guidelines in place, which can help build a positive working relationship from the start.

What does a fair and compliant employment contract include?

To adhere to the guidelines of the Employment Rights Act of 1996, employers are legally required to provide a written statement of employment particulars for every new employee.

The first part — known as the principal statement — must be given on or before the first day of employment, and must include:

• The employer’s name
• The employee’s name
• The employee’s job title (or a description of the work they will be undertaking)
• The employee’s start date
• The employee’s hours and days of work (including information about Sundays, night-period work, and overtime)
• The employee’s rate of pay, how they will be paid, and when
• The employee’s holiday entitlement (and whether this includes public holidays)
• Where the employee will be working (including the employer’s address if relevant)
• The end date (for fixed-term contracts)
• How long the employee’s probation period is and its conditions
• The notice periods for ending employment (relevant for both employer and employee)
• Any benefits the employee is eligible for (e.g. childcare, free lunch, etc.)
• Any obligatory training (and whether or not this is paid for)
• Any sick pay allowances and relevant procedures
• Any types of paid leave the employee is eligible for

The second part of the written statement of employment particulars is the wider written statement, and it must be provided to new employees within two months of their start date. It must cover information regarding:

• Company pensions and pension schemes
• Collective agreements (a contract between an employer and a union which represents employees, if relevant)
• Any other right to non-compulsory training provided by the employer
• Disciplinary and grievance procedures
• Confidentiality agreements

It is also important to note that UK businesses with five or more employees must provide a written Health and Safety Policy under the Health and Safety at Work Act of 1974. This is not required in the written employment contract, but must exist and be made available to employees.

How do I make an employment contract flexible?

It’s very rare for all employees to have exactly the same contract and agreed terms. For example, senior management roles may require more information on restrictive covenants, while a shift worker’s contract may focus more on working hour agreements.

With this in mind, it’s important to create tailored contracts to reflect the varying needs, industries, and roles in operation within a business. At Hay & Kilner, our employment law solicitors in Newcastle can help draft customised contracts for your business, allowing you to set clear, legally-binding expectations while remaining flexible and adaptable to different roles.

Take a look at our law services for businesses, including employment law and HR services like HR Key.

How to stay legally compliant and avoid issues

The most important part of drafting any employment contract is ensuring the content aligns with UK employment laws. This will protect your business from disputes, misunderstandings, and tribunal claims in the worst cases.

Some of the most common employment contract pitfalls include:

• Using vague or misleading language
• Omitting key legal terms
• Including unlawful clauses
• Failing to include essential rights and statutory entitlements

Employment contract writing takes a high level of knowledge regarding the current UK employment laws in place. Thankfully, our team is on-hand to help draft and review fully compliant, fair, and future-proof employment contracts that will protect your company with confidence.

Stay protected with employment law support from Hay & Kilner

Whether you’d like us to update your employment contracts to reflect legislation changes, conduct an audit to identify any existing liability issues, or draft up specific clauses, we’re only a call away.

Contact our employment law team today for more information, and we’ll be more than happy to assist you.