While a written contract is not legally required, (a verbal contract is equally valid under UK law), having a clear, written employment agreement significantly reduces the risk of future disputes. It also helps to protect and maintain a healthy employer-employee relationship by clearly outlining expectations and commitments.

What terms should an employment contract include?

A basic employment contract should include the following terms and information:

• The names of the employee and employer
• The name and address of the workplace
• Job title and a description of the role
• Start date of employment

Salary or wage details, including payment frequency and method

• Agreed working hours
• Holiday entitlement and sick leave provisions
• Notice periods required for termination by either party
• Any trade union agreements (if relevant)
• A detailed grievance and disciplinary procedure
• Pension arrangements (if applicable)

Express and Implied Terms

Express terms are those explicitly stated, either verbally or in writing within the contract, offer letter, or employee handbook.

Implied terms are not written down but are legally recognised due to the nature of the role, workplace customs, or necessity. For example, if an employee’s role requires them to drive, it is implied that they must hold a valid driving licence.

Are employment contracts legally binding?

Yes, employment contracts are legally binding once agreed upon, whether verbal or written. However, it is important that the employer clearly communicates which terms are legally binding and which are policies or expectations.

Why legal advice matters

Our employment law solicitors are experienced in drafting and reviewing employment contracts to ensure they are clear, enforceable, and tailored to your business needs. Whether you’re a start-up hiring your first employee or an established employer expanding your team, we will help you create contracts that form the foundation for strong working relationships.