Employment Contract

All employers must give their employees and workers a written document setting out the main terms of their employment or service when they start work.  This sets out the key rights and obligations that exist in the relationship. These rights are in addition to those that you have under employment law, such as the right to be paid the National Minimum Wage.  

This is known in legal terms as a ‘written statement of particulars’ or a “section 1 statement” as it is a requirement of section 1 of the Employment Rights Act 1996.   

Certain particulars must be contained in a single document (known as a ‘principal statement’), other particulars may be contained in other reasonably accessible documents (such as a company policy), and other particulars may be given in instalments.

Particulars that must be given no later than day one, in the principal statement include:

• employer’s name; 
• employee or worker’s name;
• the date the employment/work starts;
• the date that ‘continuous employment’ started for an employee;
• job title, or a brief job description;
• the places or addresses of where the employee or worker will work;
• pay, including how often and when;
• normal working hours, including which days the employee or worker must work and if and how their hours or days can change;
• holidays (including public holidays) and holiday pay, including an explanation of how its calculated if the employee or worker leaves);
• the amount of sick leave and pay and procedures (the principal statement can refer to another reasonably accessible document);
• any other paid leave e.g. adoption, maternity, paternity and shared parental leave (the principal statement can refer to another reasonably accessible document);
• any other benefits, including non-contractual benefits;
• the notice period to be given by employee/worker and employer to terminate the contract;
• any probation period, including its conditions and how long it is;
• how long the job will last and if fixed term/temporary, the date of termination;
• if the employee will work abroad for more than one month, for how long and any terms that apply; and
• training that must be completed by the employee or worker, including training the employer does not pay for

Employers can provide some particulars at a later date but these must be provided no later than two months after starting employment. The terms that can be given later are:

• pension arrangements (the employer may refer to another reasonably accessible document);
• details of any applicable collective agreement(s) which directly affect the terms and conditions. If there is no applicable collective agreement, that fact should be stated;
• details of any training provided by the employer which is not compulsory; and
• disciplinary rules and disciplinary and grievance procedures

Terms of the Employment Contract

Most employees will also get a written contract of employment setting out their main terms and conditions of employment which usually incorporates the above written particulars. An employment contract is made up of:

Express terms – which would include things written down in the agreement, this should include pay, hours and place of work. This may also include things agreed orally with your employer.

Collective agreement – some terms may be incorporated by a collective agreement e.g. redundancy pay or selection process, this would be referred to in your contract;

Implied Terms – these are not always written in the contract but are usually easily understood and include the employee’s duty to obey reasonable orders, the employer’s health and safety duties and the implied term of mutual trust and confidence;

Custom and Practice – these are implied terms in employment contracts if they are customary in a particular trade or workplace. To be binding it must be “reasonable, notorious and certain” If you have worked in a particular way for a period of time, with your employer’s approval, then this pattern of working may form part of your contract.

How is this different from my Statutory Rights?

All employees and workers have rights given by law – these are your statutory rights. Your contract cannot provide for less than your statutory rights e.g. the right to paid holidays, to be paid the national minimum wage and the right to not be discriminated against. You have these rights even if they are not written into your contract. If your written contract gives you fewer or less favourable rights than under the law (e.g. lower than minimum wage), this will not be enforceable and you should take legal advice as you may have a claim against your employer.

Note: The Government’s Employment Rights Bill 2024 proposes to extend these time limits to 6 months from the date of termination of employment, however it is not yet confirmed whether, and if so when, that will become effective.

This advice applies in England, Wales and Scotland. If you live in another part of the UK, the law may differ. If you are in Northern Ireland you can visit the Labour Relations Agency or call their helpline Workplace Information Service on 03300 555 300.

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