UK employment law requires every employee contract to include a minimum set of terms, regardless of how many staff you employ. Since April 2020, these must be provided on or before the employee's first day not within two months as was previously allowed. A legally compliant small business employment contract must cover:
The employee's job title, department, main duties, and who they report to. A clearly defined role description reduces ambiguity about responsibilities and provides a factual basis for any future performance or conduct discussions.
The contracted hours per week, core availability requirements, any flexible or hybrid working arrangement, and how overtime is handled. Post Employment Rights Act 2025, day-one flexible working rights must be acknowledged in the contract.
The agreed pay rate or salary, payment frequency (weekly or monthly), overtime rates where applicable, and any salary review provisions. Must meet or exceed the National Living Wage rates effective from April 2025.
Statutory minimum annual leave (5.6 weeks), public holiday arrangements, and the rules for carrying leave over. Also covers sick pay, maternity, paternity, shared parental, and bereavement leave — all mandatory particulars since April 2020
Minimum statutory notice periods and any enhanced contractual notice. Whether the role is permanent, fixed-term, or casual. If fixed-term, the expected end date or the condition that triggers the end of the contract.
Auto-enrolment pension details, employer contribution rates, and any additional benefits such as health cover, bonus schemes, or staff discounts. Clearly stating these prevents disputes and aids recruitment and retention.
The length of any introductory or probationary period, the notice period applicable during probation, and the process for confirming employment on completion. Note: the Employment Rights Act 2025 introduces new considerations around dismissal during probation.
Clauses protecting your business's confidential information, client relationships, and trade secrets — during and after employment. Non-solicitation and non-compete provisions where legally appropriate and proportionate to the role.
Many small business owners assume employment law is primarily a concern for larger organisations. It isn’t. UK employment legislation applies from the moment you take on your first employee, and the consequences of getting contracts wrong fall disproportionately hard on smaller businesses, which typically lack the reserves to absorb tribunal awards or the management time to handle prolonged disputes.
Our HR consultants have helped over 1,000 UK businesses, from sole traders taking on their first employee to growing SMEs with 50+ staff, get their employment documentation right. We offer:
For a full overview of our employment contract services, including advice on specific clauses and contract types, visit our employment contracts service page.
A template can be a useful starting point, but off-the-shelf contracts frequently lack the personalised detail your business needs. They often miss mandatory clauses introduced since April 2020, fail to reflect your specific working arrangements, and may not hold up in an employment tribunal. Harwood HR tailors contracts to your business structure, sector, and current employment law, giving you far stronger legal protection than any generic template.
A legally compliant small business employment contract must include: job title and description, notice periods, working hours, pay rate and schedule, holiday and sick leave entitlements, family leave provisions, pension details, probationary period terms, training provisions, and a reference to disciplinary and grievance procedures. Harwood HR ensures all mandatory particulars are included and up to date with current legislation.
We understand that small businesses often need contracts quickly, particularly when hiring at short notice. Most bespoke employment contracts for small businesses can be drafted within two to three working days. More complex requirements may take a little longer. Contact us to discuss your timeline, and we will confirm a turnaround before starting work.
Yes. If your current contracts are outdated or incomplete, we will review and revise them to ensure they reflect your current terms, comply with the Employment Rights Act 2025, and provide adequate protection for your business. Contract reviews are also included as standard in our retained HR service.
Yes. We provide legally sound contracts for all working arrangements, including zero-hours contracts, part-time roles, fixed-term positions, and casual worker agreements. Zero-hours contracts in particular require careful drafting following the reforms introduced by the Employment Rights Act 2025, which restricts their use in certain circumstances and introduces new obligations around guaranteed hours offers.
Operating without written employment contracts leaves your business significantly exposed. Without a contract, employment terms default to statutory minimums and implied terms, which may be far less favourable to your business than negotiated contractual terms. Tribunals can award an additional two to four weeks’ pay for failing to provide a written statement of employment particulars, even when the underlying claim is otherwise unsuccessful. You also lose protection from confidentiality breaches, IP theft, and post-termination solicitation of clients.
Yes. Our support extends well beyond issuing the initial contract. Through our retained HR service and pay-as-you-go HR support, we provide ongoing employment law advice, handle contract updates as legislation changes, and support you through any HR issues that arise — from disciplinary procedures to redundancy.
Organisations that fail to provide the statutory statement of main terms and conditions will breach the rights of their employee.
Read MoreThere are also many types of employment contracts to consider here. Because of this, it can be a good idea to get advice on the law, to make sure they are all drawn up correctly.
Read MoreEmployment contracts are mandatory and you can be fined if you don’t put contracts in place.
Read MoreOur retained HR service offers you all the benefits of having your own HR department, but at a fraction of the cost.
Read MoreExperience the power of Harwood HR and unlock the exclusive H&S portal for just £20 per month.
Read MoreConvenient, flexible and affordable through our portal with NO upfront cost, employees will enjoy an enhanced learning environment.
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When a business starts to grow, the people's challenges grow with it. More employees mean more employment contracts to manage, more workplace policies to implement, more compliance obligations to meet,...
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