What Should Go in an Employment Contract? Here’s What Matters Most

Recruiting someone new is exciting but it also comes with legal responsibilities. One of the most important? Giving your employee a written contract. And not just any contract, one that clearly sets out the key terms of their job. 

But what exactly needs to go in it? 

Here’s a straightforward guide to what you should include in every employment contract (and why it matters). 

1. Job Title and Description 

This tells the employee what role they’ve been hired for and what’s expected of them. Keep it broad enough to allow for flexibility but clear enough to avoid confusion. For example: "Customer Service Assistant – responsible for handling customer queries via phone, email and in-store." Don’t put job title and descriptions that are too specific, too vague or include ambiguous terms. 

2. Start Date and Type of Contract  

State when the job begins and whether it’s permanent, fixed-term, or temporary. This helps avoid disputes down the line. Also, don’t forget to include the probation period (if you’re using one), including how long it lasts and how much notice is required during it. 

3. Pay 

Be clear about how much the employee will be paid, how often (e.g. monthly), and the method (e.g. bank transfer). Mention any overtime, bonuses, or commission if relevant. Be sure to always double-check that what you’re offering is at least in line with the National Minimum Wage. 

4. Hours of Work and Location 

Include the expected working hours (e.g. 9am to 5pm, Monday to Friday) and whether there’s any flexibility. Also, state the work location whether it’s in the office, at home, or a hybrid role.  If the job may involve travel or changes to location in future, make sure you state this clearly too. 

5. Holiday Entitlement 

By law, full-time workers are entitled to a minimum of 28 days’ paid holiday per year (this includes bank holidays). If you offer more, then great! Just be clear about how it’s calculated, whether there are restrictions on when it can be taken and how much notice they are required to give when making holiday requests.  

6. Notice Period 

How much notice does the employee have to give if they want to leave and how much will you give them? The contract should spell this out, even if it’s just the statutory minimum. 

7. Sick Pay and Other Benefits  

Let them know what they’ll get if they’re off sick. Will they just receive Statutory Sick Pay, or do you offer company sick pay? Also include any other benefits you offer such as pension contributions, staff discounts, flexible working, or anything else that’s part of the deal.  

8. Disciplinary and Grievance Procedures  

This doesn’t need to be pages long in the contract itself, but you should point to where these policies can be found (e.g. in your staff handbook or internal documents). It’s part of your legal duty to make this information accessible. 

9. Confidentiality and Data Protection 

You should include a simple clause that insists that the employee cannot share confidential business information or client details outside of work. It is critical if your business handles sensitive data. 

10. Any Special Agreements 

This is where you can add things like non-compete clauses (if applicable), agreements about using personal phones/laptops for work, remote working expectations, etc. Just make sure they’re reasonable and clearly explained. 

For You and Your Employee’s Protection 

Having a solid employment contract in place isn’t just a legal box to tick, it protects both you and your employee. It sets expectations, avoids misunderstandings, and shows that you’re a professional employer who takes people management seriously. 

Want step-by-step guidance on employment contracts or a ready-to-use contract of employment template? Subscribe to Dakota Blue Academy for instant access.