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employmentERA 2025

Employment Contract

Updated for the Employment Rights Act 2025

A comprehensive employment contract for use under English law, updated for the Employment Rights Act 2025. Covers all essential employment terms including pay, hours, holidays, sick pay, pension, and restrictive covenants.

What's included

  • Employer and employee details
  • Job title, duties, and reporting line
  • Probationary period (with extension)
  • Place of work and hybrid working clause
  • Working hours and overtime treatment
  • Pay, salary review, and discretionary bonus
  • Holiday entitlement (28-day statutory minimum)
  • Statutory sick pay — ERA 2025 day-one compliant
  • Company sick pay scheme
  • Compassionate leave
  • Auto-enrolment pension
  • Notice period with PILON and garden leave
  • Post-termination restrictions
  • Right to search clause

Recent legal changes

The Employment Rights Act 2025 is the most significant reform to UK employment law in a generation. It introduces day-one unfair dismissal protection, strengthens flexible working rights, and expands statutory sick pay eligibility from day one. Employment contracts that predate ERA 2025 may no longer reflect employees' statutory entitlements — making an updated, compliant contract essential for every new hire.

What is a Employment Contract?

An employment contract is a legally binding agreement between employer and employee setting out the terms and conditions of employment. Under the Employment Rights Act 1996 (as amended by ERA 2025), employers must provide a written statement of employment particulars from the first day of employment.

When do you need one?

You need an employment contract when hiring any new employee, changing an existing employee’s terms, or formalising an informal arrangement. ERA 2025 means that contracts which do not reflect day-one statutory rights are non-compliant from the moment employment begins.

Last updated: March 2026

Frequently asked questions

What does the Employment Rights Act 2025 change about employment contracts?

ERA 2025 introduces day-one unfair dismissal protection, removes the qualifying period for flexible working requests, extends statutory sick pay to day one, and strengthens protection for zero-hours workers. Employment contracts must reflect these changes to be legally compliant.

Is an employment contract a legal requirement under ERA 2025?

Yes. Employers must provide a written statement of employment particulars from day one of employment under the Employment Rights Act 1996, as amended. ERA 2025 increases the consequences of failing to do so.

Do I need to update existing employment contracts for ERA 2025?

Existing employees retain their current contractual terms, but the statutory floor has risen. Any new contracts must reflect ERA 2025’s day-one rights. Employers should review existing contracts to ensure they are not offering less than the statutory minimum.

What should an ERA 2025 compliant employment contract include?

Job title, start date, pay, working hours, holiday entitlement (statutory minimum 28 days), statutory sick pay from day one, flexible working policy, notice period, pension auto-enrolment, and any post-termination restrictions.

When do ERA 2025 changes come into effect?

Key ERA 2025 provisions took effect from April 2025, with further provisions including the repeal of the qualifying period for unfair dismissal claims expected in 2026. Bracton’s template is updated for all provisions in force as of March 2026.

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Employment ContractPreview

1. PARTIES

This Agreement is made between [Employer Legal Name] ("the Employer") and [Employee Full Name] ("the Employee") on [Agreement Date].

2. JOB TITLE AND DUTIES

The Employer appoints the Employee to the position of [Job Title], reporting to [Line Manager]. The Employee shall perform such duties as are reasonably assigned from time to time consistent with their role.

3. COMMENCEMENT

Employment under this Agreement commences on [Start Date]. This date also constitutes the Employee's date of continuous employment for statutory purposes.

NEXT SECTION

OBLIGATIONS

ADDITIONAL TERMS

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✓ ERA 2025 compliant · ✓ Solicitor-reviewed · ✓ Instant PDF