Parties and start date
Name the employer and employee clearly, record the start date, and state the continuous employment date where previous service or a TUPE-style history is relevant.
Employment contract guide
What should be included in an employment contract?
An employment contract should make the working relationship clear before the employee starts. It should cover the key written particulars, explain how the role works in practice, and reduce the risk of later disputes about pay, hours, duties, holiday, sickness, notice or confidentiality.
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Quick answer
What should an employment contract cover?
A useful contract records the statutory written particulars and the practical terms that make the employment relationship workable from day one.
Not every clause is appropriate for every role. The contract should match the actual working arrangement.
✓employer and employee details
✓start date and continuous employment date
✓job title and duties
✓place of work
✓working hours and flexibility
✓salary, pay dates and benefits
✓holiday entitlement and holiday pay
✓sickness absence and sick pay
✓pension arrangements
✓probation
✓notice periods
✓disciplinary and grievance procedures
✓confidentiality
✓intellectual property
✓data protection
✓restrictive covenants, if appropriate
✓termination
✓governing law
Section 1 statement
Written statement vs employment contract
The written statement of employment particulars summarises key terms. The employment contract is broader than the written statement and can include express contractual terms, policy references and additional protections. Employers should ensure key terms are provided in writing on time; a properly drafted employment contract can include the written particulars and the wider terms that protect the business.
Some terms may be implied by law or conduct, but relying on implied terms alone is risky. Clear express terms reduce disputes, although they do not guarantee compliance in every situation.
Written statement
- statutory summary of key particulars
- includes core terms such as parties, start date, job, pay, hours and holiday
- principal statement due on or before the first day of employment
Employment contract
- broader legal agreement between employer and employee
- can include additional terms around confidentiality, IP, notice, probation, policies, restrictions and termination
- should reflect the actual role and workplace arrangement
Contract checklist
Essential employment contract terms
These are the clauses small businesses should consider when preparing a contract. The final wording should be proportionate to the role, seniority and working arrangement.
Job title and duties
Set out the job title, role description, reporting line and core duties. Reasonable-change wording can help, but it should not be used to disguise a substantially different role.
Place of work
Identify the normal workplace and explain any remote, hybrid or site-based arrangement. Mobility wording should be proportionate to the role and business need.
Working hours
Cover normal hours, working days, overtime expectations, flexibility, breaks and any shift pattern. The wording should match how the employee will actually work.
Pay and benefits
State salary or hourly rate, pay frequency, pay date and any benefits. Bonuses, commission, expenses and salary review wording should be clear about what is contractual and what is discretionary.
Holiday
Explain annual leave entitlement, bank holidays, the holiday year, booking rules and holiday pay. Keep the contract aligned with the employee’s working pattern.
Sickness absence and sick pay
Set out how absence must be reported, what evidence may be required, and whether sick pay is limited to SSP or includes a contractual scheme.
Pension
Refer to workplace pension arrangements and auto-enrolment duties at a high level, with operational details handled through the pension provider or separate communications.
Probation
State the probation length, review process, extension approach and any shorter notice period. Probation helps manage expectations, but it is not a free pass to ignore employment rights.
Notice periods
Record notice by employer and employee, while staying aware of statutory minimums. Senior or hard-to-replace roles may justify longer contractual notice.
Disciplinary and grievance procedures
Tell employees where procedures can be found and consider whether policies should be non-contractual so the business can update them without formally varying the contract.
Confidentiality
Protect business information such as client lists, pricing, processes, strategy, financial data and trade secrets during and after employment.
Intellectual property
For creative, technical, product, content or design roles, say who owns work product created in the course of employment and how records or materials should be handled.
Data protection
Explain that employee data will be handled for employment administration and link to relevant privacy or data-handling policies where appropriate.
Restrictive covenants
Restrictions may be relevant for senior, sales or client-facing roles, but they should be carefully tailored to legitimate business interests and the employee’s actual position.
Termination and garden leave/PILON
Cover termination mechanics and, for appropriate roles, payment in lieu of notice or garden leave wording. Do not assume these clauses are suitable for every employee.
Often missed
Clauses many small businesses forget
The highest-risk gaps are often practical rather than theoretical. If the contract is silent on how the role actually operates, managers are left to improvise later.
•probation review process
•remote or hybrid working expectations
•confidentiality after employment ends
•IP ownership for role-created work
•deductions from wages, where appropriate and lawful
•expenses approval and reimbursement process
•company property return
•conflict of interest
•secondary employment
•social media and systems use where policy-linked
•garden leave or PILON for appropriate roles
Bracton documents
Which Bracton document should you use?
Start with the employment contract if the person is joining as an employee. Supporting documents can then handle the offer stage, workplace processes or genuinely independent contractor arrangements.
Primary document
Employment Contract
Use this as the core contract for an employee: role, pay, hours, holiday, sickness, probation, notice, pension, confidentiality and practical employment terms.
Create an employment contract →employment
Employment Offer Letter
Confirm headline terms and offer conditions before the full contract is finalised, including start date, role, salary and checks.
Create an offer letter →employment
Disciplinary Policy and Procedure
Set a clear workplace process for conduct concerns, investigations, hearings, outcomes and appeals.
Create a disciplinary policy →employment
Flexible Working Policy
Explain how flexible working requests are made, considered, consulted on and recorded.
Create a flexible working policy →business
Non-Disclosure Agreement
Use a standalone NDA where confidential information is shared outside the normal employment contract context.
View NDA →business
Freelance Agreement
Use only where the person is genuinely self-employed and providing services independently, not joining as an employee.
View freelance agreement →Avoidable risks
Common employment contract mistakes
A contract does not need to be overcomplicated, but it should be specific enough to support the actual relationship and the policies that sit around it.
Copying a generic contract
A copied contract may miss the real working pattern, role risks or policy framework. Tailor the terms before the employee starts.
Leaving key terms vague
Unclear pay, hours, duties, holiday, sickness or notice wording makes disputes harder to resolve and harder to evidence.
Not matching reality
The contract should match how the role actually works, including remote work, overtime expectations, reporting lines and benefits.
Forgetting written particulars
Some terms must be provided in writing on time. A full employment contract can be a practical way to include the required particulars and wider protections.
Using the wrong status wording
Employee and contractor arrangements are different. Do not use employee wording for a genuine contractor, or a freelance agreement for someone who is really an employee.
Making every policy contractual
Some terms belong in the contract, while some workplace procedures may be better as policy references that can be updated more flexibly.
Overusing restrictive covenants
Restrictions should be proportionate and carefully tailored. Overbroad wording may be harder to rely on and can create false confidence.
Ignoring IP and confidentiality
Creative, technical, product and client-facing roles often need clear confidentiality and intellectual property wording from day one.
Not updating changed roles
Material changes to duties, hours, place of work, pay or seniority should prompt a contract review rather than relying on old terms.
Next steps
Keep building your employment setup.
Use these guides to plan the wider hiring workflow, cost position, status decision and ongoing employment law update process.
Hiring Your First Employee guide
Use the first-hire checklist if you are preparing the role, offer, payroll, pension, policies and onboarding plan.
Read more →Cost of Employing Someone guide
Budget salary, employer NI, pension contributions, equipment, onboarding and employment document costs.
Read more →Contractor vs Employee guide
Check whether the relationship is employment or a genuine self-employed arrangement before choosing the document.
Read more →Small Business Legal Toolkit
Put employment contracts alongside wider small-business risk controls for contractors, IP, debt recovery and trading documents.
Read more →Employment Rights Act 2025 hub
Review current employment law reform themes before relying on old contract and policy wording.
Read more →Freelance alternative
If the person is genuinely independent, compare employment with freelance engagement terms and status risks.
Read more →Employment document category
Browse Bracton employment contracts, offer letters, workplace policies and related employer documents.
Browse documents →Frequently asked questions
Some employment particulars must be provided in writing, including core details such as the parties, start date, role, pay, hours, holiday and other required terms. A fuller employment contract often also covers probation, notice, sickness, confidentiality, IP, data protection, policy references and termination. The right clauses depend on the role and working arrangement.
Employment contract checklist
Create a clear employment contract before work starts
Bracton helps small businesses create practical employment contracts that set out the key terms of the working relationship clearly from day one.
This guide is general information only and is not legal advice. Employers should take advice for complex or high-risk roles, unusual pay arrangements, disputed changes, immigration issues or uncertain employment status.