Contract of employment
Also called Employment contract, Written statement of particulars, Section 1 statement
The terms someone works under. A written statement is legally required from day one.
Please note: This page explains what a term means. It is general information, not legal, financial, tax or investment advice, and it does not know anything about your business. Before you sign, file or commit to anything, check it with an accountant, a solicitor, or the official guidance we link to.
What it means
A contract of employment exists as soon as someone accepts a job, written or not. Separately, employers must give employees and workers a written statement of particulars on or before their first day.
The statement must cover pay, hours, holiday, place of work, notice, probation, training entitlement and more.
Why it matters
Failing to provide it is a breach that can add compensation to any other tribunal claim.
More practically, almost every employment dispute in a small business turns on something that was never written down: whether a bonus was discretionary, what notice applies, whether overtime is paid.
What it looks like in practice
Cover the required particulars, then the clauses that protect the business: confidentiality, intellectual property assignment, and proportionate post-termination restrictions.
Distinguish contractual terms from policies. Anything in the contract needs agreement to change; a policy in a handbook can be updated.
Put probation, notice during probation, and what happens at the end of it in writing.
What to watch out for
Restrictive covenants that are too wide. An unreasonable non-compete is unenforceable, and the reasonable narrower one you could have had is lost with it.
Copying a contract from a previous employer. It may commit you to benefits you did not intend and may not reflect current law.
Where to get proper advice
ACAS provides free templates and guidance. An employment solicitor for senior roles and for restrictive covenants that actually matter.
Where to read more
Last reviewed 2026-08-28 by Fiducia Together · Next review due 2027-08-28
Please note: This page explains what a term means. It is general information, not legal, financial, tax or investment advice, and it does not know anything about your business. Before you sign, file or commit to anything, check it with an accountant, a solicitor, or the official guidance we link to.
Fiducia Together