A contract is a legally binding agreement. This could be a ‘contract of employment’ or a ‘contract of service’.
An employment contract can be agreed:
- verbally – this is when it’s agreed through conversations
- in writing – for example, a job offer letter or through emails
Parts of an employment contract can also be agreed through conduct. This is when people’s actions show there’s an agreement, even though they have not written it down or spoken about it.
Your employment contract and a ‘written statement of employment particulars’
By law (Employment Rights Act 1996), you have the right to a ‘written statement of employment particulars’ if you have the legal status of either:
- an employee
- a worker – unless they started the job before 6 April 2020
A written statement includes the main terms of your employment, for example pay and working hours. This document is often referred to as the ’employment contract’. But by law, the employment contract is broader than just the written statement.
For example, an employment contract might also include:
- other clauses – for example about keeping sensitive company information confidential
- the organisation’s code of conduct
- policies – for example on social media or data protection (GDPR)
Terms that must be included in the principal statement
Employers must provide a ‘principal statement’ on or before the first day of work. This is the main written statement document.
The following must all be included in the principal statement:
- your employer’s name
- your name
- the start date (the day you are expected to start work)
- the date that ‘continuous employment’ (working for the same employer without a significant break) started.
- job title or a brief description of the job
- your employer’s address
- the places or addresses where you will work
- pay, including how often and when (for example, £1,000 per month, paid on the last Friday of the calendar month)
- working hours, including which days you must work and if and how your hours or days can change
- holiday and holiday pay, including an explanation of how its calculated if you leave or work irregular hours
- the amount of sick leave and pay (if this information is not included in the document, your employer must state where to find it)
- any other paid leave (if this information is not included in the document, your employer must state where to find it)
- any contractual benefits – these are benefits that your employer must provide
- any non-contractual benefits – these are benefits your employer may provide but can choose not to
- the notice period either side must give when employment ends
- how long the job is expected to last (if it’s temporary or fixed term)
- any probation period, including its conditions and how long it is
- if you will be expected to work abroad, and any terms that apply
- training that you must complete, including training your employer does not pay for
Terms that can be provided after you start work
Employers can provide some terms in ‘instalments’ after the first day of work. They must provide these terms no later than 2 months after the start of the employment.
The terms that can be given in instalments are:
- disciplinary rules and disciplinary and grievance procedures
- pension arrangements (if this information is not included in the document, the employer must state where you can find it)
- any ‘collective agreements’ (terms and conditions that apply to other employees too)
- details of any training provided by your employer that is not compulsory (if this information is not included in the document, your employer must state where to find it)
When your employment contract begins
An employment contract begins when you start work.
This is the case even if your employer has:
- failed to provide you with a written statement
- not put any other parts of the employment contract in writing
The contract might be formed earlier if all the following apply:
- the employer set out the terms of the job in a clear and definite way, verbally or in writing
- the job offer was unconditional or you met all the conditions – for example, the employer was satisfied with your references
- you have formally accepted the job offer verbally or in writing