What must a UK employment contract include?
By SuLe · Updated 26 June 2026
Every UK employee and worker has a legal right to a written statement of their main employment terms — including pay, hours, holiday, notice, place of work and probation — on or before their first day. This is a day-one right under the Employment Rights Act 1996. Startups usually fold that statement into a single signed contract that also covers confidentiality and intellectual property.
Key facts
- The written statement of particulars is a day-one legal right under the Employment Rights Act 1996 (s.1) — most of it must be given on or before the first day.
- It must set out pay, hours, holiday, notice, job title, place of work, probation and any disciplinary and grievance procedures.
- Statutory paid holiday is 5.6 weeks a year, which can include bank holidays.
- Pay must meet the National Minimum Wage and be paid in money — equity cannot count towards it.
- A startup contract should always add confidentiality and an intellectual property assignment clause; these are not statutory but protect the company's core value.
What terms must be in writing from day one?
The law sets a floor: a written statement of particulars covering the core terms of the job. Under the Employment Rights Act 1996, most of it is a day-one right for both employees and workers.
That statement must include the names of employer and employee, the start date, pay and pay intervals, hours and days of work, holiday entitlement, job title or a description of duties, and the place of work. It must also cover notice periods, any probationary period and its conditions, and where to find the disciplinary and grievance rules.
A handful of items — pension arrangements, training entitlements and details of any collective agreements — can follow within two months. In practice, issuing everything in one document before day one is simpler and avoids gaps.
What is the difference between the contract and the written statement?
The written statement is the legal minimum; the contract is the whole deal. A contract can be spoken, written or implied, but relying on anything unwritten is a trap for a growing company.
The sensible approach is one signed document that both satisfies the statement duty and adds the protective terms the statute does not require. That way the employee's obligations are as clear as their entitlements.
For a startup, the protective terms matter as much as pay. Confidentiality, an intellectual property assignment, and any post-termination restrictions turn a bare statement into a contract that actually defends the business.
What extra clauses should a startup contract include?
Beyond the statutory particulars, three clauses do the heavy lifting for an early-stage company. They are what separate a generic template from something fit for a business whose value is intangible.
First, an intellectual property assignment: everything the employee creates in the course of employment belongs to the company, expressly assigned, with a duty to help register it. Second, confidentiality covering trade secrets, customer data and financial information. Third, proportionate restrictive covenants if the role justifies them — though these are only enforceable where genuinely reasonable.
Add clear provisions on probation, notice, holiday and sickness, and a statement that any staff handbook is non-contractual. That last point stops a policy change from accidentally becoming a breach of contract.
| Term | Statutory minimum | What startups usually do |
|---|---|---|
| Written statement | Day one (s.1 ERA 1996) | One signed contract issued before start date |
| Pay | National Minimum Wage, paid in money | Salary plus separate option grant |
| Holiday | 5.6 weeks (can include bank holidays) | 25 days plus bank holidays is common |
| Notice | 1 week after 1 month's service | 1 month either way for most roles |
| Probation | Not required by statute | 3–6 months with a shorter notice period |
| IP assignment | Not required by statute | Always included — protects core value |
Worked example
Maya founds a fintech and hires her first engineer, Sam, on a £55,000 salary. She issues one signed contract before day one covering pay, 25 days' holiday plus bank holidays, a one-month notice period, and a three-month probation with a one-week notice during probation.
Crucially, the contract assigns all IP Sam creates to the company and adds a confidentiality clause. Sam is also granted share options under a separate EMI agreement — because options cannot count towards his minimum-wage entitlement, his cash salary is set independently. Maya keeps a signed copy and diarises the probation review date.
Where founders go wrong
Hiring on a verbal agreement and "sorting the paperwork later"
— the written statement is a day-one right; skipping it invites disputes and a tribunal penalty.Copying a US template
— at-will employment and US IP rules do not apply here; use a contract drafted for England and Wales.Leaving out the IP assignment
— without it, ownership of your product can be contested by the person who built it.Making the handbook contractual by accident
— always state that policies are non-contractual so you can update them freely.
Related questions
Is a written statement the same as a contract?
Not quite. The written statement of particulars is the minimum set of terms the law forces you to put in writing. A contract is the wider agreement — it can be spoken or implied — but in practice startups combine both into one signed document so nothing is left to memory. [More: Do I have to give employees a written contract by law?]
When must I give the written statement?
Most of it must be provided on or before the employee's first day, as a day-one right under the Employment Rights Act 1996. A small number of items, such as pension and training details, can follow within two months, but issuing everything upfront is cleaner.
Do I need an IP assignment clause?
Yes, in almost every case. Without a clear assignment clause, ownership of what an employee creates can be contested, especially for anything made outside core duties. For a startup whose value is its code or brand, this clause is not optional. [More: Who owns the IP my employees and contractors create?]
What happens if I give no written terms at all?
The employment still exists on implied and statutory terms, but if the employee brings any successful tribunal claim, the tribunal can award two or four weeks' pay for the missing statement. More importantly, undocumented terms create disputes you will usually lose.
A good employment contract is where three areas of law meet — employment, tax and intellectual property — and a template that gets any one wrong can cost you your IP or expose you to a claim. A SuLe solicitor can tailor your first contract so it protects the company from day one. Book a free consultation about your contracts and start hiring on solid ground.
Keep reading: How do I hire my first employee in the UK (legal checklist)? · Do I have to give employees a written contract by law? · How do probation periods work legally in the UK? · What notice period should startup employment contracts use? · Who owns the IP my employees and contractors create?
Primary sources: GOV.UK — Employment contracts · Acas — advice and codes of practice
