How to Write a UK Employment Contract: Required Sections

A UK employment contract has two jobs. First, it must satisfy Section 1 of the Employment Rights Act 1996 (the principal statement of particulars — a day-one right). Second, it must form a coherent commercial agreement that protects the employer and the employee throughout the relationship. This how-to walks through the structure of a compliant contract, section by section, with the exact statutory references each section anchors to.

Step 1 — Confirm Status Before You Draft

Before drafting, confirm the employment status of the person:

Use HMRC’s CEST tool for tax-status indication: https://www.gov.uk/guidance/check-employment-status-for-tax. The case law (Pimlico Plumbers; Uber) makes clear that contractual labels do not control — the reality of the relationship does.

Step 2 — Open the Document with the Mandatory Identification Block

Section 1(3)(a) requires the names of employer and employee. The opening paragraph:

“This Agreement is made between [Company Name] Limited (Company Number [XXXXXXXX]) of [Registered Office] (“the Company”) and [Employee Full Legal Name] of [Employee Address] (“the Employee”).”

Tips:

• Use the registered company number — it is unambiguous
• Use the employee’s full legal name (matching their right-to-work document)
• Date of agreement on the front page

Step 3 — State the Start Date and Continuous Employment Date

Two distinct dates required by ERA 1996, s.1(3)(b) and (c):

Continuous employment counts when:

• The employee transferred under TUPE (Transfer of Undertakings (Protection of Employment) Regulations 2006)
• The employee moved between associated employers (ERA 1996, s.218(6))
• There is no break of more than 1 week between contracts

Step 4 — Job Title, Place of Work, and Duties

Required by ERA 1996, s.1(4)(f) and (h):

“The Employee’s job title is [Job Title]. A summary of duties is at Schedule 1.

The Employee’s normal place of work is [Address]. The Company may require the Employee to work at any other Company office, with reasonable notice. The Employee acknowledges that the role may include up to [X] days per week of remote working from the Employee’s home, by mutual agreement.”

If the role involves work outside the UK for more than 1 month, additional particulars under s.1(4)(k) must be given (currency of pay, expat-specific terms, conditions of return).

Step 5 — Hours of Work

Required by ERA 1996, s.1(4)(c):

“The Employee’s normal hours of work are [37.5] hours per week, Monday to Friday, between [09:00 and 17:30] with [1 hour] unpaid lunch break.

The Employee may be required to work additional hours from time to time as the Company reasonably requires. No additional payment is made for such hours.”

For shift workers, set out the shift pattern. For zero-hours workers, state explicitly that hours are not guaranteed.

The 48-hour weekly maximum under Working Time Regulations 1998, Reg.4 applies. If you intend to require more than 48 hours/week (averaged over 17 weeks), include a separate opt-out agreement under Reg.5 — never combine the opt-out with the contract.

WTR 1998: https://www.legislation.gov.uk/uksi/1998/1833/contents/made

Step 6 — Pay

Required by ERA 1996, s.1(4)(a) and (b):

“The Company shall pay the Employee £[Annual Salary] per annum, payable in equal monthly instalments by BACS on the [last working day] of each calendar month.

The Company shall deduct income tax, National Insurance contributions, pension contributions, and other lawful deductions.”

For NMW-sensitive roles: the contract pay must clear the applicable NMW for every pay reference period, after deductions. From 1 April 2026, the NLW is £12.71/hour for workers aged 21+.

Bonuses: state clearly whether discretionary or contractual. A discretionary bonus is the Company’s gift; a contractual bonus is enforceable.

Step 7 — Probation Period

Required (since 6 April 2020) by ERA 1996, s.1(4)(b)(ii):

“The Employee’s first 6 months of employment is a probation period. During the probation period, either party may terminate the Agreement on 1 week’s written notice.

The Company may extend the probation period by up to a further 3 months by written notice given before the original probation period ends, where the Company reasonably considers that an extension is appropriate.

On successful completion of the probation period, the standard notice provisions in clause [X] apply.”

Statutory minimum notice (ERA 1996, s.86) applies during probation: 1 week from the employer once the employee has 1 month of service.

Step 8 — Holiday Entitlement

Required by ERA 1996, s.1(4)(d)(i):

“The Employee is entitled to 28 days paid annual leave per leave year (5.6 weeks pro rata for part-time workers), inclusive of the 8 UK bank holidays.

The leave year runs from 1 April to 31 March. Holiday must be taken in the leave year in which it accrues. Up to 5 days may be carried forward by mutual agreement.”

The statutory minimum under WTR 1998, Reg.13 + 13A is 5.6 weeks (= 28 days for a 5-day-week worker). State explicitly whether bank holidays are included in or in addition to the 28 days; ambiguity is the most common cause of holiday-pay disputes.

Step 9 — Sickness and Family Leave

Required by ERA 1996, s.1(4)(d)(ii):

“The Company pays Statutory Sick Pay (SSP) in accordance with the Social Security Contributions and Benefits Act 1992. [Optionally: The Company will additionally pay full salary for the first [X] days of certified absence in any rolling 12-month period.]”

Family-leave entitlements (maternity, paternity, shared parental, adoption, parental, carer’s) follow statute. The contract should reference the Company’s family leave policy.

Step 10 — Pension

Required by ERA 1996, s.1(4)(d)(v):

“The Company will assess the Employee for auto-enrolment under the Pensions Act 2008. Eligible jobholders are auto-enrolled in the Company’s pension scheme, [NEST / Aviva / etc.], with the Company contributing 3% (or higher if specified) of qualifying earnings.”

The Pensions Regulator employer guide: https://www.thepensionsregulator.gov.uk/en/employers

Step 11 — Notice Period (Post-Probation)

Required by ERA 1996, s.1(4)(e):

“After successful completion of the probation period, the notice period is [3 months] from either side, in writing.

Notice given by either party will be respected. The Company may, at its discretion, place the Employee on garden leave during the notice period.”

Statutory minimum notice from employer (ERA 1996, s.86(1)): 1 week per year of service from 2 to 12 years, capped at 12 weeks. From the employee: 1 week regardless of service. The contract may provide more, never less.

Step 12 — Confidentiality, IP, and Restrictive Covenants

Not strictly Section 1 requirements, but commercially essential:

• Confidentiality — defining “Confidential Information”; obligation during and after employment
• Intellectual Property — assignment of IP created in the course of employment
• Restrictive covenants — non-compete, non-solicitation, non-dealing, post-employment

Restrictive covenants must be reasonable in scope, geography, and duration. The leading authority is Tillman v Egon Zehnder [2019] UKSC 32. A 12-month UK-wide non-compete is rarely enforceable; a 3- or 6-month narrowly-drawn non-solicit usually is.

Step 13 — Disciplinary, Grievance, and Health & Safety

Required references under ERA 1996, s.1(4):

“The Company’s disciplinary and grievance procedures are set out in the Employee Handbook, which forms part of this Agreement and is available on [location]. The procedures are aligned with the ACAS Code of Practice on Disciplinary and Grievance Procedures.”

ACAS Code: https://www.acas.org.uk/acas-code-of-practice-on-disciplinary-and-grievance-procedures

Also reference the Company’s H&S policy under HASAWA 1974, s.2(3) (employer’s general duty of care).

Step 14 — Required Training

Required (since 6 April 2020) by ERA 1996, s.1(4)(p):

“The Employee is required to complete the Company’s induction training during the first month, paid for by the Company. The Employee is required to maintain such professional development as the Company reasonably specifies, paid for by the Company up to £[X] per year.”

Step 15 — Signature, Date, and Schedule of Duties

End the document with:

• Signature blocks for both parties
• Date of signature
• A Schedule 1 giving a clear summary of duties and reporting line

Both parties sign before day one, satisfying ERA 1996, s.1(2) (the day-one deadline).

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Disclaimer

This article provides legal information, not legal advice. MmowW Scrib🐮 is a document preparation service operated by a licensed Gyoseishoshi (行政書士) office in Japan. We are not solicitors, barristers, or attorneys.

Sources

1. Employment Rights Act 1996, Section 1: https://www.legislation.gov.uk/ukpga/1996/18/section/1
2. Working Time Regulations 1998: https://www.legislation.gov.uk/uksi/1998/1833/contents/made
3. ACAS Code of Practice on Disciplinary and Grievance: https://www.acas.org.uk/acas-code-of-practice-on-disciplinary-and-grievance-procedures
4. The Pensions Regulator (employer hub): https://www.thepensionsregulator.gov.uk/en/employers