UK Employment Contract FAQ: 20 Common Employer Questions

This FAQ collects the 20 most common questions small UK employers ask when issuing their first or second employment contract in 2026. Each answer cites the statutory authority. Not legal advice — legal information for orientation.

Q1. Do I have to give a written contract on day one?

Yes. Under Employment Rights Act 1996, s.1(2), the principal statement of particulars must be given no later than the beginning of the employment. Since 6 April 2020 this is a day-one right and applies to both employees and workers.

ERA 1996, s.1: https://www.legislation.gov.uk/ukpga/1996/18/section/1

Q2. Can I include a probation period?

Yes. Probation is a contractual concept, not a statutory one. You may include any reasonable probation period (typically 3 or 6 months). Since 6 April 2020 the existence, conditions, and duration of any probation period must be stated in the principal statement (ERA 1996, s.1(4)(b)(ii)).

Q3. Can I extend the probation period?

Only if the contract gives you the right. Without a contractual extension right, an extension is a contract variation requiring the employee’s consent. Best practice: include “the Company may extend by up to a further 3 months on written notice given before the original probation period ends”.

Q4. What is the minimum notice period I have to give?

ERA 1996, s.86(1) sets statutory minima from the employer:

From the employee, 1 week regardless of service (s.86(2)). Contractual notice may be longer; statute provides the floor.

Q5. How much holiday do I have to give?

The statutory minimum under Working Time Regulations 1998, Reg.13 + 13A is 5.6 weeks per leave year = 28 days for a 5-day-week worker. You may include the 8 UK bank holidays within the 28 days, or in addition — your contract decides. State this explicitly in the contract; ambiguity causes disputes.

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

Q6. What is the minimum wage in 2026?

From 1 April 2026:

• National Living Wage (21+): £12.71/hour
• 18–20 rate: £10.85/hour
• 16–17 rate: £8.00/hour
• Apprentice rate: £8.00/hour (under 19, or 19+ in first year)

Government announcement: https://www.gov.uk/government/news/national-living-wage-increases-to-1271-per-hour

Q7. Do I have to auto-enrol my one employee in a pension?

Yes, if the employee is an “eligible jobholder” — aged 22 to State Pension age, earning above the trigger (≈ £10,000/year). The duty applies even with a single employee. Employer minimum contribution: 3% of qualifying earnings; total minimum: 8%.

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

Q8. Can I make my employee work more than 48 hours per week?

Only with a signed individual opt-out under WTR 1998, Reg.5. The 48-hour weekly maximum (averaged over 17 weeks) applies by default. The opt-out must be:

• Voluntary
• Individual (not collective)
• In writing
• Revocable on 7 days’ notice (or up to 3 months by agreement)

Never combine the opt-out with the contract.

Q9. Are restrictive covenants enforceable?

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

• Narrow — define what is being protected (specific clients, specific information)
• Short — 3–6 months for non-compete; 6–12 months for non-solicit
• Geographically tailored — only what your business actually covers

Q10. Can I dismiss someone in their probation period?

Yes, with statutory minimum notice (1 week from 1 month of service onwards). However:

• Automatically unfair dismissals (whistleblowing, pregnancy, asserting a statutory right, discriminatory reason) have no qualifying period
• The 2-year qualifying period for ordinary unfair dismissal under ERA 1996, s.108 still bars most claims during probation
• Document the reason properly

Q11. Do I have to pay for required training?

Yes, where the training is required by the employer. ERA 1996, s.1(4)(p) (added 6 April 2020) requires the contract to state any required training and whether the employer pays. Best practice: employer pays for required training. Optional development training is a contractual choice.

Q12. Can I deduct money from wages for damaged equipment?

Only with prior written consent — either in the contract or in a separate written agreement signed before the deduction (ERA 1996, s.13). Even with consent, the deduction must not take pay below NMW for the pay reference period.

Q13. Do I need a written grievance procedure?

You must reference one in the principal statement (ERA 1996, s.1(4)). The procedure should follow the ACAS Code on Disciplinary and Grievance Procedures: written grievance → meeting → decision → right of appeal. Failure to follow the Code can adjust compensation by up to 25%.

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

Q14. Can I require someone to work from a specific office?

Yes, by stating the place of work in the contract (ERA 1996, s.1(4)(h)). If you may need flexibility:

“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.”

Q15. What if the employee works from another country?

If their habitual place of work is outside the UK, that country’s employment law generally governs the relationship — including notice, dismissal protection, holiday entitlement, and minimum wage. The UK contract is not a substitute. Use an Employer of Record (EoR) or local counsel for genuine cross-border employment.

Q16. Right-to-work check — when?

Before the start date. Under the Immigration, Asylum and Nationality Act 2006, employing without right to work exposes the employer to civil penalty up to £45,000 (first breach), £60,000 (repeat). Use:

• Online share-code check (most non-British / non-Irish workers): https://www.gov.uk/view-right-to-work
• Manual check (British / Irish citizens with passport)
• IDVT via certified IDSP (British / Irish citizens, outsourced)

Q17. Do I have to accept a flexible-working request?

No — the right (since April 2024) is to request flexible working from day one. You must consult and respond within 2 months, and may refuse on one of eight statutory grounds (extra costs, detrimental effect on quality, etc.). The right gives a process; not an outcome.

Q18. Tips and gratuities — how should I handle them?

Under the Employment (Allocation of Tips) Act 2023, all qualifying tips must be allocated to workers fairly. Tips cannot count towards NMW. Maintain a tip-allocation policy aligned with the statutory Code: https://www.gov.uk/government/publications/distributing-tips-fairly-statutory-code-of-practice

Q19. Can I include a confidentiality clause that lasts forever?

Yes for genuinely confidential information (trade secrets, client data, financial arrangements). Confidentiality of trade secrets can be permanent. Confidentiality of less-sensitive information typically lapses (1–3 years post-employment is reasonable). Explicit clause structuring helps the court interpret.

Q20. What records do I have to keep?

Bonus Q21. Should I have one contract template or many?

Have at least three:

1. Standard employee contract (full-time + part-time, full statutory rights)
2. Worker contract (zero-hours, casual — Section 1 still applies)
3. Fixed-term contract (specific end date, with Fixed-Term Employees (Prevention of Less Favourable Treatment) Regulations 2002 compliance)

Add additional templates as the business grows: Skilled Worker visa contract, senior executive contract, apprentice contract, etc.

Bonus Q22. Where does MmowW Scrib🐮 fit in?

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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. View a job applicant’s right to work details: https://www.gov.uk/view-right-to-work
5. The Pensions Regulator (employer hub): https://www.thepensionsregulator.gov.uk/en/employers