Employment contracts and pay

Employment Contracts and Written Statements

Your legal duty to provide written employment terms. Covers the day-1 requirement, mandatory terms, contract types, zero-hours protections, and penalties for non-compliance.

UK-wide
Guide summary

You must provide a written employment contract to every worker by their first day. It must include pay, hours, and notice periods. From April 2026, you must also inform employees of their right to join a trade union.

  • Provide written contract terms by day 1 of employment
  • Include pay, hours, holidays, and notice periods
  • Add trade union rights information from April 2026
  • Zero-hours workers cannot be banned from other jobs
  • Notice periods increase with years of service
  • Minimum 1 week notice for 1-2 years’ service
  • Maximum 12 weeks notice for 12+ years’ service
  • Zero-hours workers get new rights from 2026
  • Penalties apply for not providing contracts
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UK-wide Sole Trader

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From the first day of employment, you must provide every employee and worker with a written statement of employment particulars. This is a legal requirement that changed in April 2020, bringing forward the deadline from 2 months to day 1.

The written statement forms the core of the employment contract. Failing to provide it can result in tribunal awards against you, even if the employee wins their case on other grounds.

WARNING

Important change: Day 1 requirement since April 2020

Before 6 April 2020, employers had 2 months to provide written terms. This changed to day 1 (or before the first day of work) for all employees and workers hired from that date.

This means you must have the written statement ready and delivered on or before their start date. You cannot wait until after they've started work.

Legislative change under the Employment Rights Act 1996 (as amended by the Employment Rights (Employment Particulars and Paid Annual Leave) (Amendment) Regulations 2018).

What you must include in the written statement

The written statement must include specific information about the employment relationship. Some terms must be provided on day 1 (the 'principal statement'), while others can follow within 2 months.

How to structure your employment contracts

Most employers combine the written statement requirements into a single employment contract document that includes:

  • Principal terms (day 1 requirements) in the main contract body
  • Secondary terms (2-month requirements) in attached policies or employee handbook
  • Additional terms specific to your business (confidentiality, intellectual property, post-termination restrictions)

You can provide all terms on day 1 - you don't have to split them. The 2-month deadline is the latest you can provide certain terms, not a target.

Notice periods

Your employment contract must specify the notice period required from both the employer and employee to terminate the contract. These cannot be less than the statutory minimums:

Types of employment contract

The type of contract you offer determines the employment rights and obligations for both parties. Choose the appropriate contract type based on the role and working arrangement:

Zero-hours contracts: special protections

If you use zero-hours contracts, be aware of specific legal protections introduced to prevent abuse:

Flexible working rights

From 6 April 2024, employees have a day-one right to request flexible working. This represents a significant change from the previous 26-week qualifying period:

SOLE TRADER Requirement

Zero-hours exclusivity clauses are banned

Since 2015, it has been illegal to include exclusivity clauses in zero-hours contracts. You cannot prevent workers on zero-hours contracts from working for other employers.

If you include an exclusivity clause, it is unenforceable, and the worker can make a tribunal claim for detrimental treatment if you penalize them for working elsewhere.

This applies to all business types using zero-hours contracts.

When this matters: The Small Business, Enterprise and Employment Act 2015 banned exclusivity clauses in zero-hours contracts to protect worker flexibility and income security.
Zero-hours contracts: employer guidance (GOV.UK) (opens in a new tab)
INFORMATION

Probation periods are not required by law

There is no statutory requirement for probation periods. They are entirely at the employer's discretion.

If you choose to include a probation period (typically 3-6 months), you must clearly state:

  • The length of the probation period
  • What happens during and at the end of probation (review process, notice periods)
  • Whether employment rights are affected (they usually aren't - employees still have statutory rights)

Probation periods do not reduce statutory rights like unfair dismissal protection (which begins after the qualifying period — currently 2 years, reducing to 6 months from January 2027).

Probation periods are a contractual arrangement, not a legal requirement. They can help manage performance and fit in the early stages of employment.

Penalties for not providing written terms

If you fail to provide a written statement of employment particulars, employees can bring a claim to an employment tribunal. The tribunal can award financial compensation even if the employee's main claim is about something else entirely.

Discipline and grievance procedures

Your employment contract must specify the disciplinary and grievance procedures. These are governed by the Acas Code of Practice, which sets out minimum standards:

Dismissal requirements

If you need to dismiss an employee, you must follow fair procedures and have a fair reason. The law sets out strict requirements:

Employment tribunal time limits

If an employee brings a tribunal claim against you, they must do so within strict time limits. Understanding these deadlines helps you manage potential claims:

How to issue employment contracts: compliance checklist

Follow this process to ensure you meet your legal obligations when hiring staff: