What must be included
The basics
Job title and description, start date, pay and how often it’s paid, hours of work and location, holiday entitlement, notice periods on both sides, and probation terms. These are the minimum required by law and should be accurate and specific, not vague.
Vague terms create disputes. If the contract says “competitive pay” rather than a specific salary, or “reasonable hours” rather than defined working hours, you lose the ability to rely on it when a disagreement arises. Every term should be specific enough that both sides can look at it and know exactly what is required.
Sick pay and absence
The contract should reflect your sickness policy and confirm entitlement to Statutory Sick Pay. From April 2026, SSP applies from day one regardless of earnings. If you offer enhanced sick pay, the conditions should be clearly set out, including the number of qualifying days, the percentage of salary paid, and any conditions attached to that entitlement.
If your contract still references the old SSP waiting day rules, it needs updating. Contracts that are factually incorrect about statutory entitlements undermine the employer’s position if a dispute arises.
Confidentiality and data protection
For most roles, a confidentiality clause is essential. Who owns work created during employment? What information can the employee use after they leave? These clauses protect the business and set clear expectations from the start.
At a minimum, the contract should define what constitutes confidential information, the employee’s obligations during and after employment, and the consequences of a breach. For roles involving client relationships, financial data, or product development, a more detailed clause is usually warranted.
Termination and notice
Minimum notice periods are set by law, but many employers include longer contractual periods for senior or specialist roles. The contract should also set out how dismissal and resignation will be handled in practice.
It should be clear whether notice can be paid in lieu, whether the employee will be required to work their notice period or be placed on garden leave, and what happens to accrued holiday on termination. These details prevent disputes when the relationship ends.
Restrictive covenants, where relevant
For client-facing roles or positions where there is a risk of a departing employee damaging the business, non-solicitation and non-compete clauses may be appropriate. These need to be drafted carefully to be enforceable.
A poorly drafted restrictive covenant will not be upheld by a court. The restrictions need to be reasonable in scope, duration, and geography, and proportionate to the legitimate business interest they’re protecting. Boilerplate clauses copied from generic templates rarely meet this test.
What makes a contract unenforceable?
One of the most common reasons employment contracts fail to protect employers is that they’re too vague, too old, or too generic to apply to the actual situation.
A clause that’s unreasonably broad, that contradicts statute, or that wasn’t properly agreed at the start of employment can be ruled unenforceable. If verbal promises were made about pay, hours, or flexibility that don’t match the written contract, the written terms may be overridden by what was said.
Having a contract doesn’t automatically mean you’re protected. It needs to be accurate, properly drafted, and genuinely reflective of the employment relationship. That means reviewing it when roles change, when the law changes, and when your business grows.
What we built for TOP Networking
TOP Networking is a growing business network with an expanding team and a strong identity. When they came to us, they had a clear picture of who they were and where they were going, but their employment documentation hadn’t kept pace.
Using funding from Worcestershire County Council, we created a bespoke 16-page culture book that captured their values, their mission, and what working for them actually looks and feels like. Alongside that, we drafted a template employment contract that they could use for new hires as the team grew, and a practical guide to the hiring process covering job descriptions, advertising, interviewing, and the first day experience.
The culture book and the contract work together. The contract sets the legal framework. The culture book gives it a human face. Together they give new team members a clear and consistent understanding of what they’re joining and what’s expected of them.
When to review your contracts
If you have employees whose contracts were issued more than two years ago, or whose role or working arrangements have changed significantly since they started, it’s time for a review. The Employment Rights Act 2025 changes in particular mean that many standard templates are now out of date on sick pay, parental leave, and the unfair dismissal qualifying period.
These are not minor technical updates. If your contracts explicitly state terms that are now unlawful or below the legal minimum, you have a compliance problem. The ERA 2025 changes on SSP alone affect any contract that references the old waiting day rules, which covers a significant number of templates still in circulation.
We can review your existing contracts, update specific clauses, or draft new ones from scratch. Take a look at our retained HR support packages to see how we can help on an ongoing basis.
Book a free 30-minute discovery call
Or get in touch at ACAS if you’re looking for free guidance on employment contract basics before you speak to us.
About the author
Helen Scullion Assoc. CIPD, HR Client Manager at Limelite HR & Learning. Helen supports organisations with day-to-day HR management, employee relations and practical people support. Connect with Helen on LinkedIn.
