How to Use This Checklist
Click each checkbox to mark items as complete. Your progress is automatically saved to your browser. Use this checklist to:
✅ Three Ways to Use This Tool
1. Draft new employment contracts: Ensure you don't miss any essential UK employment law requirements
2. Review existing contracts: Audit your current employment agreements against all 54 compliance points
3. Prepare for new hires: Verify your template contract is legally compliant before offering employment
⚠️ What Makes a Valid Employment Contract?
📋 Legal Status: UK employment contracts can be written or verbal, but written contracts are essential evidence in tribunals. Employment Rights Act 1996 requires written particulars within 2 months of start date.
⚖️ Statutory Minimums: Contracts cannot offer less than statutory minimums: National Minimum Wage, 5.6 weeks holiday, SSP, pension auto-enrolment, maximum 48-hour week (unless opted out).
🎯 Essential Terms: Names, job title, start date, salary, hours, holiday, notice periods, sick pay, pension, work location. Missing these can result in tribunal claims.
💼 Common Issues: Unlawful deductions, unpaid holiday, inadequate notice, missing pension, below NMW, Working Time Regulations breaches, lack of GDPR compliance
⚠️ Understanding Importance Levels
🔴 Critical: Must have - statutory requirement or creates serious legal/tribunal risk if omitted
🟡 Important: Should have - best practice and strong legal protection
🔵 Recommended: Nice to have - enhances clarity and prevents disputes
1. Basic Employment Details (6 items)
Employer's Full Legal Name
The company's registered legal name exactly as it appears at Companies House. Required by Employment Rights Act 1996 s.1. Using trading names or abbreviations can create legal uncertainty.
🔴 Critical
Employer's Registered Address
The registered office address. Required for legal notices and tribunal proceedings. Must match Companies House records. Essential for serving legal documents.
🔴 Critical
Company Registration Number
The Companies House registration number. Not legally required but demonstrates legitimate employer and aids employee verification. Good practice for transparency.
🔵 Recommended
Employee's Full Name
Employee's full legal name. Required by ERA 1996 s.1. Must match ID documents for Right to Work checks, payroll, and pension auto-enrolment. Use legal name, not nicknames.
🔴 Critical
Employee's Address
Employee's residential address. Required for HMRC payroll, pension enrolment, P45/P60, and legal notices. Must be kept up to date. GDPR compliant storage required.
🔴 Critical
Contract Commencement Date
The date employment begins. Required by ERA 1996 s.1. Critical for calculating continuous service, notice periods, statutory pay entitlements, redundancy rights, and unfair dismissal protection (usually 2 years).
🔴 Critical
2. Job Details and Duties (4 items)
Job Title
Clear job title. Required by ERA 1996 s.1. Important for defining role, seniority, and responsibilities. Affects redundancy comparisons, equal pay claims, and whether restrictive covenants are enforceable.
🔴 Critical
Main Duties and Responsibilities
Detailed description of job duties. Required by ERA 1996 s.1. Must be specific enough to define role but flexible enough for reasonable changes. Include catch-all "other duties" clause for business needs. Essential for performance management.
🔴 Critical
Reporting Line
Who the employee reports to (by job title, not name). Not statutorily required but important for organizational structure, performance reviews, and grievance procedures. Best practice for clarity.
🔵 Recommended
Probation Period
Whether there's a probation period and its length (typically 3-6 months in UK). Not legally required but strongly recommended. During probation, shorter notice applies and performance can be assessed. Must be reasonable and clearly documented.
🟡 Important
3. Work Location and Working Hours (4 items)
Primary Work Location
Where the employee will normally work. Required by ERA 1996 s.1. Can be office address, "home-based", or "various locations". Important for expenses, commuting, and redundancy if relocation required.
🔴 Critical
Mobility Clause
Whether employee can be required to work at other company locations. Not required but essential for multi-site businesses. Without mobility clause, enforced relocation can be constructive dismissal. Must be reasonable.
🟡 Important
Normal Working Hours
Hours of work per week (e.g., "37.5 hours per week, Monday-Friday 9am-5pm"). Required by ERA 1996 s.1. Critical for calculating hourly rate for NMW compliance, overtime, and Working Time Regulations. Must specify if hours vary.
🔴 Critical
Working Time Regulations Opt-Out
Whether employee opts out of 48-hour maximum working week. Working Time Regulations 1998 limits average weekly hours to 48. Opt-out must be voluntary, written, and can be cancelled with 3 months notice. Cannot force opt-out.
🟡 Important
⚡
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4. Salary and Payment Terms (5 items)
Salary Amount
Annual salary or hourly rate. Required by ERA 1996 s.1. Must state gross amount. For hourly workers, specify rate per hour. Critical for tax, NI, pension calculations, and National Minimum Wage compliance checks.
🔴 Critical
Payment Frequency
How often salary is paid: monthly (most common in UK), weekly, fortnightly, or 4-weekly. Required by ERA 1996 s.1. Affects cash flow, National Minimum Wage calculations, and payroll processing.
🔴 Critical
Payment Method
How salary is paid: bank transfer (most common), cheque, cash. Bank transfer (BACS) is standard. Cash payments over £1,000 require additional HMRC reporting. Must obtain bank details securely (GDPR).
🟡 Important
National Minimum Wage Compliance
Salary must meet or exceed National Minimum Wage for all hours worked. As of 2025: £11.44/hour (21+), £8.60 (18-20), £6.40 (under 18), £6.40 (apprentice). Calculate hourly equivalent. HMRC penalties for non-compliance. Name and shame scheme applies.
🔴 Critical
Salary Review Provisions
Whether salary will be reviewed and when (typically annually). Not legally required but good practice. If promised, becomes contractual. Stating "may be reviewed" gives flexibility without creating entitlement.
🔵 Recommended
5. Holiday Entitlement (4 items)
Annual Holiday Allowance
Total holiday days per year. Statutory minimum is 5.6 weeks (28 days for full-time). Required by Working Time Regulations 1998. Can include bank holidays (typical UK practice). Must specify total days. Part-time pro-rated.
🔴 Critical
Bank Holiday Treatment
Whether 8 UK bank holidays are included in the 28 days or added on top. Most UK contracts: "28 days including bank holidays" = 20 days plus 8 bank holidays. If "28 days plus bank holidays" = 36 days total. Must be explicit.
🔴 Critical
Holiday Year Dates
When the holiday year runs: calendar year (Jan-Dec), tax year (Apr-Mar), or company year (any 12-month period). Important for accrual, carry-over, and payment on termination calculations. Must be clearly stated.
🟡 Important
Holiday Accrual in First Year
How holiday is earned during first year: full entitlement from day one, or accrued monthly (1/12th per month worked). Accrual method is lawful and prevents employees taking full holiday then resigning. Must specify accrual method if used.
🟡 Important
6. Sickness and Absence Policy (3 items)
Statutory Sick Pay (SSP) Entitlement
Employee entitled to SSP when sick. Legally required statement. SSP: £116.75/week (2025 rate) after 3 waiting days, paid for up to 28 weeks. Qualifying conditions: earning over £123/week, eligible from day 4. Social Security Contributions and Benefits Act 1992.
🔴 Critical
Occupational Sick Pay (if applicable)
Company sick pay above SSP. Not legally required but good benefit. Common: full pay for X weeks, then half pay for Y weeks, then SSP only. If offered, specify: when it starts, how long it lasts, whether it includes SSP.
🔵 Recommended
Sickness Notification Requirements
When and how to report sickness: call manager by 9am on day 1, self-certify for 7 days, GP fit note from day 8. Standard UK practice. Important for managing absence, SSP records, and identifying long-term sickness. Disciplinary if not followed.
🟡 Important
7. Pension Provisions (3 items)
Auto-Enrolment Statement
Statement about workplace pension auto-enrolment. Legally required by Pensions Act 2008. All eligible employees (aged 22+, earning £10,000+) must be auto-enrolled. Employers contribute minimum 3%, employees 5% (8% total). Cannot require opt-out.
🔴 Critical
Pension Scheme Details
Name of pension provider and contribution rates. Not required in contract but good practice. Common providers: NEST, Now Pensions, The People's Pension. State employer/employee contribution percentages. Can offer higher than statutory minimum.
🔵 Recommended
Postponement Period
Whether auto-enrolment is postponed. Employers can delay enrolment for up to 3 months. Useful to avoid enrolling employees who leave quickly. Must notify employee of postponement in writing. Still pay minimum contributions from start date if employee opts in.
🔵 Recommended
8. Notice Periods (3 items)
Employee Notice Period
Notice employee must give to resign. Required by ERA 1996 s.1. No statutory minimum (common law: reasonable notice). Typically 1 month for most roles, 2-3 months for senior roles. Can be different from employer notice. Must be clear and in writing.
🔴 Critical
Employer Notice Period
Notice employer must give to terminate. Required by ERA 1996 s.1 and s.86. Statutory minimum: 1 week after 1 month service, then 1 week per year service (max 12 weeks). Contract can offer more but not less. Critical for redundancy and dismissal.
🔴 Critical
Probation Period Notice
Shorter notice during probation period. Not legally required but highly recommended. Common: 1 week notice by either party during probation. After probation, longer notice applies. Makes probation meaningful - otherwise full notice applies from day one.
🟡 Important
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9. Disciplinary and Grievance Procedures (4 items)
Disciplinary Procedure Reference
Reference to company disciplinary procedure. Required by ERA 1996 s.1. Must follow ACAS Code of Practice. Contract should reference separate policy or include full procedure. Essential for fair dismissals. Non-compliance makes dismissals potentially unfair.
🔴 Critical
Grievance Procedure Reference
Reference to grievance procedure. Required by ERA 1996 s.1. Must follow ACAS Code. Employees have statutory right to raise grievances. Procedure must be accessible, fair, and allow representation. Failure to follow can increase tribunal compensation by 25%.
🔴 Critical
Right to be Accompanied
Right to bring companion to disciplinary/grievance meetings. Statutory right under Employment Relations Act 1999. Companion can be colleague or trade union rep. Must inform employee of this right. Failing to allow companion is separate claim at tribunal.
🔴 Critical
Appeal Rights
Right to appeal disciplinary decisions. Required by ACAS Code. Must offer appeal to more senior manager. Appeal should be genuine reconsideration, not rubber-stamping. Lack of appeal makes dismissal potentially unfair and increases compensation.
🟡 Important
10. Data Protection and Privacy (3 items)
GDPR Compliance Statement
Statement about data protection under GDPR (UK GDPR post-Brexit). Legally required by Data Protection Act 2018. Must inform employee their personal data will be processed. ICO fines up to £17.5m or 4% turnover for breaches. Essential for lawful processing.
🔴 Critical
Data Processing for Employment Purposes
Consent/lawful basis for processing employee data. GDPR requires lawful basis: usually "contract performance" and "legal obligation" for employment. Process: payroll, pensions, tax, right to work, references, benefits. Must be transparent about data use.
🔴 Critical
Privacy Notice Reference
Reference to separate Privacy Notice with full GDPR details. Required by GDPR Article 13. Privacy Notice must detail: what data collected, why, how long kept, who shared with, employee rights (access, correction, deletion). Can be separate document.
🟡 Important
11. Confidentiality and Intellectual Property (4 items)
Confidentiality Clause
Duty to keep company information confidential during and after employment. Common law duty exists but express clause is stronger. Covers: trade secrets, client lists, pricing, business plans, sensitive data. Breach can justify dismissal. Survives termination indefinitely.
🔴 Critical
Intellectual Property Ownership
Employer owns all IP created during employment. Copyright, Patents and Designs Act 1988: employer owns employee works created in course of employment. Express clause avoids disputes. Particularly important for creative, technical, software development roles. Includes inventions, designs, code.
🟡 Important
Post-Termination Restrictions (Restrictive Covenants)
Restrictions after employment ends: non-compete, non-solicitation of clients, non-poaching of staff. Not required but important for senior roles. Must be reasonable in duration (6-12 months typical), geographic scope, and business interest protected. Courts scrutinize heavily. Too broad = unenforceable.
🔵 Recommended
Non-Compete Clause (if applicable)
Prevents working for competitors after leaving. Highly restrictive - only enforceable if protecting legitimate business interest and reasonable. Typical: 6 months, defined industry/geography. Garden leave can support enforceability. Get legal advice - unenforceable if overreaching.
🔵 Recommended
12. Additional Benefits and Perks (3 items)
Company Car or Car Allowance
Company car provision or cash allowance for business travel. Not required but common benefit for sales, senior roles. If provided, specify: type of car, business/personal use split, maintenance responsibility, insurance. Tax implications (P11D benefit). Return on termination.
🔵 Recommended
Private Health Insurance
Private medical insurance benefit (e.g., Bupa, AXA PPP). Not required but attractive benefit. If offered, specify: provider, coverage level, whether family included, waiting periods. Taxable benefit. Consider cost vs reducing sick absence. Usually ceases on termination.
🔵 Recommended
Bonus Schemes
Discretionary or contractual bonus arrangements. If offering bonus, specify: discretionary (no entitlement, management decides) vs contractual (employee entitled if criteria met). State criteria, timing, calculation method. Discretionary wording protects employer. Performance bonuses common for sales roles.
🔵 Recommended
13. General Contract Terms (6 items)
Entire Agreement Clause
This contract supersedes all prior agreements and representations. Prevents employee claiming "but you promised..." based on recruitment discussions. Standard clause for contract certainty. Doesn't prevent claims for fraudulent misrepresentation or statutory rights.
🟡 Important
Variation Clause
Changes to contract must be in writing and signed. Prevents informal variations and "he said/she said" disputes. Without this, verbal agreements can vary contract terms. Employer can reserve right to vary specific terms (with notice), but major changes need consent.
🟡 Important
Governing Law and Jurisdiction
Which country's laws apply (England & Wales, Scotland, Northern Ireland) and which courts/tribunals have jurisdiction. For UK employment, English law and Employment Tribunals is standard. Required for clarity on applicable employment law. Statutory rights apply regardless.
🔴 Critical
Severability Clause
If one provision is invalid, rest of contract continues. Prevents entire contract failing if one clause is problematic (e.g., overly broad restrictive covenant). Court can sever unenforceable clauses. Standard protective clause in all contracts.
🔵 Recommended
Collective Agreements Statement
Statement whether any collective agreements affect employment. Statutory requirement (ERA 1996 s.1). Most UK employers: "No collective agreements apply". If union recognized, must specify which terms are incorporated from collective agreement. Important for unionized workplaces.
🔴 Critical
Third Party Rights Exclusion
Contracts (Rights of Third Parties) Act 1999 excluded. Prevents third parties enforcing contract terms. Standard clause - only parties to contract can enforce it. Without exclusion, third parties mentioned in contract could potentially sue.
🔵 Recommended
14. Execution and Signatures (2 items)
Signature Blocks for Both Parties
Proper signature blocks for employee and employer (with name, position for employer signatory, date). Contract isn't binding until signed by both parties. Electronic signatures are legally valid (E-signatures Regulations 2002). Both parties need signed copy for records.
🔴 Critical
Copy Provided to Employee
Employee must receive copy of signed contract. Good practice to confirm receipt. ERA 1996 requires written particulars within 2 months. Prevents disputes over what was agreed. Keep copies of all employment contracts for at least 6 years after termination (tax/legal requirements).
🟡 Important
⚡
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Next Steps
Now that you've reviewed the compliance checklist, you have three options:
✅ Use Our Ready-Made Template (Recommended)
Save hours of legal research and drafting. Our professionally-crafted employment contract covers all 54 compliance points with legally-sound wording. It includes automatic minimum wage checking, holiday calculations, pension auto-enrolment compliance, and GDPR provisions. Available in both Interview Mode (guided) and Editor Mode (direct editing) for just £10.
📝 Draft Your Own Contract
Use this checklist as your guide, but remember: getting the legal wording correct is complex. Minimum wage calculations, Working Time Regulations opt-outs, pension auto-enrolment, restrictive covenants, and disciplinary procedures require precise language. A single error can result in tribunal claims, HMRC penalties, or Pensions Regulator fines.
⚖️ Book a Legal Consultation
For complex situations, senior roles with restrictive covenants, or high-value positions, consider booking a consultation with our legal professionals for personalized advice tailored to your specific circumstances.