Permanent Employment Contract Template (UK) – Create a Legally Compliant Contract in Minutes

Under the Employment Rights Act 1996, you must provide employees with a written statement of particulars within 2 months of their start date. A comprehensive employment contract should include:

• Employee and employer details - Full legal names and addresses
• Job title and description - Clear role responsibilities and reporting structure
• Start date - When employment begins (and end date if fixed-term)
• Salary and payment terms - Annual salary, payment frequency, and method
• Working hours - Normal working hours per week and any overtime requirements
• Holiday entitlement - Annual leave days (minimum 5.6 weeks including bank holidays)
• Place of work - Primary work location and any mobility requirements
• Probationary period - Length and terms (typically 3-6 months)
• Notice periods - How much notice both parties must give to end employment
• Sickness absence - Sick pay entitlements and notification procedures
• Pension arrangements - Auto-enrolment pension scheme details
• Disciplinary and grievance procedures - Process for handling workplace issues
• Confidentiality clauses - Protection of business information
• Restrictive covenants - Post-employment restrictions (if applicable)

Our template includes all statutory requirements and best practice clauses.

Legal Penalties and Tribunal Risks:

• Breach of statutory duty: Failing to provide written particulars within 2 months is a breach of employment law
• Employment tribunal claims: Employees can claim for lack of written particulars, with awards up to 4 weeks' pay
• Uplift on other claims: Tribunals can increase compensation awards by 10-50% if you haven't provided written terms
• Weak legal position: Without written terms, proving what was agreed becomes your word against theirs
• Implied terms apply: Courts may imply less favorable terms than you intended

Common Employment Disputes Without Clear Contracts:

Disagreements over job duties and responsibilities, working hours and overtime expectations, holiday entitlement calculations, notice period requirements, IP ownership of created work, confidentiality obligations, and post-employment restrictions. These disputes cost UK employers millions annually in legal fees and tribunal awards.

A £10 contract prevents £10,000+ in legal costs and tribunal awards.

Comprehensive Employment Protection:

• ✓ Complete employee and employer details section
• ✓ Job title, description, and reporting line
• ✓ Employment start date and continuity of service
• ✓ Fixed-term contract provisions (if applicable)
• ✓ Salary amount and payment terms (monthly/weekly)
• ✓ Working hours (full-time/part-time specifications)
• ✓ Overtime provisions and payment terms
• ✓ Holiday entitlement (statutory minimum + additional days)
• ✓ Bank holiday provisions
• ✓ Place of work and mobility clauses
• ✓ Probationary period terms (length and assessment)
• ✓ Notice periods for both parties
• ✓ Sickness absence procedures and SSP entitlement
• ✓ Pension auto-enrolment provisions
• ✓ Maternity/paternity leave rights
• ✓ Confidentiality and data protection obligations
• ✓ Intellectual property ownership clauses
• ✓ Non-solicitation provisions (clients and employees)
• ✓ Non-compete restrictive covenants (optional)
• ✓ Disciplinary and grievance procedures reference
• ✓ Collective agreements (if applicable)
• ✓ Garden leave provisions
• ✓ GDPR-compliant data processing terms

Professionally drafted, legally compliant, and ready to sign.

Don't Make These Critical Errors:

• No written contract: Relying on verbal agreements or offer letters instead of comprehensive contracts exposes you to claims.
• Missing statutory information: Failing to include all required particulars under Section 1 Employment Rights Act 1996.
• Vague job descriptions: Unclear duties lead to scope creep and disputes over what the employee should be doing.
• Incorrect holiday calculations: Failing to include the statutory 5.6 weeks (28 days for full-time workers) is a breach.
• No probationary period: Without a probation clause, you have weaker grounds for early termination.
• Inadequate notice periods: Statutory minimums apply but longer periods protect business handovers.
• Missing confidentiality clauses: Employees can share business secrets without express confidentiality terms.
• No IP ownership clauses: Without clear terms, employees may claim ownership of work they create.
• Unenforceable restrictive covenants: Overly broad non-competes or non-solicits that courts won't enforce.
• No garden leave provisions: Can't put employees on garden leave without express contractual right.
• Outdated terms: Using old templates that don't comply with current employment law (pension auto-enrolment, GDPR, etc.).

Our template prevents all these mistakes with current, compliant, and enforceable terms.