Employment contract

  • Customisable to your needs
  • Works seamlessly with our template staff handbook and HR policies
  • Provides key protections for your business

An employment contract sets the legal terms of employment between an employee and the employer. This includes salary, hours of work and responsibilities and duties. It might also be referred to as a contract of employment or employment agreement. Use this employment contract to hire a junior or senior employee in a permanent or temporary role. Note that this employment contract is not suitable for hiring annualised hours employees or part-year workers.

It’s important to use proper contracts when hiring new employees to comply with the law and to protect your business. This contract contains all of the information you’re legally required to give to new employees in writing about their terms of employment and it’s fully customisable to your individual requirements and the role. It also contains key clauses to protect your business during the course of the employment relationship, including to safeguard your intellectual property and confidential information.

Q&A

  • When should I use this document?

    You should use this template every time you hire a junior or senior employee on a permanent or temporary basis. To comply with your legal obligations, you must provide all new employees with a written copy of their basic employment terms, which includes information about their pay, hours of work and holiday allowance.

    If you want to go above and beyond what is legally required of you, you can customise this employment contract to set out all of the rights, duties and responsibilities that will govern the employment relationship, so that you are both you and your employee are clear about what has been agreed.

    This agreement also contains additional provisions to help your business operations run smoothly and to give you extra protections.

    If your new employee will also be a director of your company, use our template service agreement for a director instead.

  • What does this document cover?

    This employment contract includes all of the information you’re legally required to give to new employees, and additional clauses to protect your business. These include:

    • job title;
    • hours and place of work;
    • pay and benefits;
    • holiday entitlement;
    • information about sickness absence and pay;
    • start date and end of employment notice provisions;
    • pensions information;
    • information about your disciplinary and grievances procedures; and
    • details of any collective agreements.

    For senior employees, this template also gives you the option to prevent your employee from competing with your business after they leave by including restrictive covenants.

    This contract is designed to be used alongside our template Staff handbook and policies, which contains full details of some policies you are legally required to give to your new employees (eg your disciplinary and grievances procedures).

  • Why do I need this document?

    Employers are legally required to provide certain basic terms of employment in writing to their new employees. This template contract will ensure that you comply with that legal obligation when you take on a new employee.

    An employment contract governs the legal relationship between an employer and employee, and you can adapt this template to the requirements of your business and the individual role.

    This employment contract also provides additional terms to protect your confidential information and intellectual property. For senior employees, you can customise it to include terms to prevent your employee from competing with you after they leave.

  • Where can I find out more?

    If you want to find out more about what information you’re legally required to provide to new employees, see our guidance on Employment contracts.

    To create customised HR policies and procedures for your business, which you can provide to your new employee alongside their employment contract, use our template Staff handbook and policies.

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