Writing an Employment Contract

By: In2Accounting

What to include in a contract:

A contract would need set out the terms you require and would need to be offered to and accepted by your employee. This is a simple example of terms that would be expected to be included in an Employment Contract.

  • your businesses name and address
  • the name of the employee
  • the date their employment begins
  • Details of the contract length (permanent or fixed term)
  • how much and when the employee will be paid e.g. weekly or monthly
  • hours of work
  • holidays and holiday pay, annual leave entitlements
  • job title and job description
  • Terms and conditions of Employment Contracts
  • Details of the Company’s discipline and grievance procedures

Learn more about contracts and how to make one on the ACAS website: http://www.acas.org.uk/index.aspx?articleid=1461


Other Points which may or may not be applicable to you include:

  • Sick leave and sick pay
  • Details of any probationary period – (a probationary period can be a good idea)
  • Information on overtime, time off in lieu or flexible working arrangements
  • Confidentiality and data protection
  • Expenses
  • Maternity, Paternity, Parental, Shared Parental & Adoption leave  Notice requirement



While a Contract of Employment is not a legal requirement in most cases, it could prove to be advantageous. Having a contract will protect you and your business in a number of ways, most notably because the employee will be bound by the terms of the contract.

If the work the employee engages in involves dealing with confidential information about your business, your products or your clients, a contract gives you the platform to specify clauses in the contract which prevent the employee from divulging this confidential information even after their employment contract has ended.

A contract can set out the length of the contract and the period of notice (ie, time before leaving the position). Having an employee agree to these conditions in a contract can give you greater control over their ability to leave their position and your ability to terminate their contract. For example, setting an initial contract 90 days term will give you the option to extend or terminate this contract without difficulty after the 90 day period, depending on the performance of the employee. It will also protect your business from employees leaving without giving appropriate notice.

Other clauses that can set out include, start and ending of a working day, expected appearance, expected performance level. These all allow you to terminate employment if any of the clauses are not met.

Today, most employees would prefer to have a Contract of Employment in place before commencing employment. An Employment Contract is also seen as a certain security in their position and helps attract talent.

Download Sample UK Contract

Download this employment contract to get an idea of the issues you will be required to address when you are producing your own employment contracts.

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