Employment Contract — 2026 Drafting Guide

An employment contract is not a form. It is a set of carefully calibrated clauses that protect both sides — setting expectations, defining rights, capping risks. Drafted well, it prevents disputes. Drafted badly, it creates them.

The statutory minimum (s.1 ERA 1996)

Every employee and worker is entitled to a written statement of particulars on day one:

• Employer and employee details
• Job title / description
• Start date (and continuous service date if different)
• Place(s) of work
• Hours (including any variable hours terms)
• Pay (including overtime, bonus, commission)
• Pay intervals
• Holiday entitlement and pay
• Sick pay terms
• Notice periods
• Probationary period if any, with length and conditions
• Training provided
• Pension scheme
• Other benefits
• Duration if fixed-term

The bespoke additions worth having

Restrictive covenants

• Non-compete — reasonable scope, geography, duration
• Non-solicitation of customers
• Non-solicitation of staff
• Non-dealing (wider than non-solicitation)
• Garden leave

Enforceability tested against legitimate business interest, reasonableness, and public interest. Courts are sceptical of excessively wide clauses.

Confidentiality

Both during and after employment. Definition of “Confidential Information”. Clear obligations. Exclusions (public knowledge, disclosure required by law).

Intellectual property

Assignment of all IP created in course of employment, moral rights waiver, assistance with registration, past and future.

Data protection

Short provision acknowledging employee data processing and cross-referring to the employee privacy notice.

Variation

Mechanism for updating the contract. Required consents. What can be varied unilaterally (benefits structure) vs. by agreement (core terms).

Specific categories needing care

Senior / executive contracts

• Longer notice periods (3–12 months)
• Stronger restrictive covenants
• Bonus and LTIP provisions
• Garden leave
• Change of control protections

Sales contracts

• Commission structure detailed
• Deferred commission for post-termination collections
• Clawback for returned products
• Stronger non-solicitation

Flexible / gig / zero-hours

• Working time arrangements
• Availability rules
• Notice of shifts
• Worker vs employee classification — Uber / Pimlico Plumbers framework

Compliance landmines

• Holiday Pay Reform (UK) — post-Harpur Trust v Brazel
• Zero-hours and low-hours working — Part 1 of the Employment Rights Act 2025 (the separate right to request a predictable working pattern was repealed on 6 January 2026)
• National Minimum Wage — hours of work definition
• Working Time Regulations 1998 — rest breaks, maximum hours, opt-out
• Equality Act 2010 — no discriminatory terms

Can Chris draft the employment contract?

Yes. Tell Chris the role, seniority, business sector, and any specific concerns (competitor risk, customer relationships, IP development). Chris drafts:

• Full employment contract with s.1 particulars
• Restrictive covenants proportionate to role
• Bonus / commission schedule
• Employee handbook cross-referenced or standalone
• Employee privacy notice

Chris drafts standard contracts, and handles executive and commission-heavy roles too.

Prepare to win. Plan not to fail.

Every employment relationship ends eventually. Draft the contract while both sides are hopeful.

Frequently asked questions

What must every UK employment contract include?

Every employee and worker is entitled to a written statement of particulars on day one under s.1 of the Employment Rights Act 1996. That covers employer and employee details, job title, start date, place of work, hours, pay and pay intervals, holiday and sick pay, notice periods, any probationary period, training, pension and other benefits, and the duration if it is a fixed term.

What bespoke clauses are worth adding beyond the statutory minimum?

Common additions include restrictive covenants (non-compete, non-solicitation of customers and staff, non-dealing), garden leave, confidentiality both during and after employment, intellectual property assignment with a moral-rights waiver, a short data-protection provision cross-referring to the employee privacy notice, and a variation mechanism setting out what can change unilaterally and what needs agreement.

Are restrictive covenants always enforceable?

Not automatically. Covenants are tested against legitimate business interest, reasonableness of scope, geography and duration, and the public interest. Courts are sceptical of excessively wide clauses, so the scope should be proportionate to the role.

Do senior, sales and gig contracts need special care?

Yes. Executive contracts often carry longer notice, stronger covenants, bonus or LTIP and change-of-control protections; sales contracts need detailed commission, deferred commission and clawback terms; and flexible, gig or zero-hours arrangements raise working-time, availability and worker-versus-employee classification questions.

What compliance points should the contract respect?

Among others: holiday pay reform following Harpur Trust v Brazel, zero-hours and low-hours working under Part 1 of the Employment Rights Act 2025 (the separate right to request a predictable working pattern having been repealed on 6 January 2026), National Minimum Wage and the definition of working hours, the Working Time Regulations 1998 (rest breaks, maximum hours, opt-out) and the Equality Act 2010 requirement that terms are non-discriminatory.

Can Chris draft executive or commission-heavy contracts?

Yes. Chris drafts standard contracts and also handles executive and commission-heavy roles, and can produce a cross-referenced or standalone employee handbook and an employee privacy notice.

Related guides: Company formation pack · NDA & confidentiality agreements · All civil court forms