Harper James is a UK full-service commercial law firm advising businesses on employment and workforce restructuring under the laws of England and Wales. An employment contract should record the agreed terms clearly and support consistent management of the employment relationship.
Name the employer and employee, and state the job title, main duties, reporting line and place of work. Include any reasonable flexibility around duties, travel, remote working or relocation. Check whether the individual is an employee, worker or contractor, because employment status affects the rights and obligations that apply. The contract should also state the start date, continuous employment date where relevant, and whether the role is permanent, fixed-term or subject to a genuine temporary arrangement.
State the salary or hourly rate, pay intervals, working hours, expected days, overtime arrangements and any commission or bonus terms. Make clear whether discretionary payments are contractual or non-contractual, and explain how benefits operate, including pension arrangements, private medical cover, share options or allowances. Include the statutory or contractual holiday entitlement, the method for requesting leave, sick pay arrangements, and any requirements for reporting sickness. The contract should provide the written particulars required by the Employment Rights Act 1996, including probation arrangements, notice periods, training requirements and any applicable collective agreements.
Cross-reference relevant policies, such as disciplinary, grievance, sickness, equality, health and safety, data protection and acceptable-use policies. State which policies are contractual and which may be amended by the employer. Include confidentiality obligations and provisions dealing with intellectual property created in the course of employment. If post-termination restrictions are needed, tailor them to the employee’s role and the business interests being protected. Broad restrictions are more difficult to enforce than terms directed at a specific and legitimate concern.
Set out notice requirements, the right to make deductions where legally permitted, and the circumstances in which employment may end. Check that termination provisions do not remove statutory rights, including rights relating to discrimination, whistleblowing and family leave. Before issuing the contract, compare it with the offer letter, staff handbook and any existing policies so that the documents do not conflict. Keep a signed or otherwise confirmed copy, record later amendments in writing, and review templates when legislation, working practices or the organisation’s structure changes.