What Should Actually Be in an Employment Contract?
Employment contracts are something most people probably do not pay much attention to until there is a problem. When starting a new job, it is easy to quickly read through the paperwork, sign it and assume everything important has been covered.
However, a contract is not just paperwork for the employer to keep on file. It explains what both sides have agreed to and can become very important if there is later confusion about pay, working hours, notice or responsibilities.
A contract begins when an employer and an employee or worker agree to the terms of the working relationship. Those terms may be written down, agreed verbally or sometimes implied by the way the workplace normally operates. For example if an employer clearly offers someone a position for a particular salary and the person accepts it, an agreement may already exist even if they have not yet signed a document headed "Employment Contract."
The written statement
Employees and workers are generally entitled to receive a written statement of employment particulars. This summarises the main conditions of the job, although it is not exactly the same thing as the full employment contract. The main part of this statement should usually be provided on or before the person's first day of work. Some additional information can be given separately, but it must normally be provided within two months. The statement should cover practical information such as who the employer is, when the person starts, their job title and where they will work.
It should also explain their pay and how often they will receive it. This might sound obvious, but details matter. Someone should know whether they are paid hourly or through a salary, when payday is and whether their pay can change in particular circumstances. Working hours should be covered too. This includes the days or hours someone is expected to work and whether those hours can vary. A phrase such as "hours may change depending on business needs" could have a real effect on someone's routine, so it should not be ignored just because it appears in a standard contract.
Holiday entitlement and holiday pay should also be explained, including how unused holiday will be handled if the person leaves the organisation. Other information normally includes sick leave and sick pay, notice periods, benefits, probation arrangements and any compulsory training. If the position is temporary or fixed-term, the expected length of the job should be included as well. Some details, such as pension information and disciplinary and grievance procedures, can be provided through separate documents. If the statement refers to another policy or staff handbook, the employer should make it clear where that information can be found.
What is a probation period?
Probation is usually a trial period at the beginning of a job. It gives the employer time to assess how the person is performing and gives the new starter an opportunity to decide whether the role suits them.
A contract should explain how long probation lasts and whether any different conditions apply during that period. For example, the notice period might be shorter during probation. The contract may also explain whether probation can be extended and how the employee will be told whether they have passed it.
Being on probation does not mean someone has no employment rights. Rights such as minimum wage, paid holiday and protection from unlawful discrimination do not simply disappear during this period.
Policies and contracts are not always the same
A workplace may have separate policies covering sickness, remote working, social media, expenses or disciplinary procedures. Some policies are contractual, meaning they form part of the employment agreement. Others are described as non-contractual, which can give the employer more flexibility to update them. This is one reason it is worth checking what the contract actually says about the staff handbook rather than assuming every workplace policy has the same legal status.
It is also important to separate benefits the employer is contractually required to provide from benefits it may choose to offer. A guaranteed contractual bonus is different from a discretionary bonus, for example.
The word "discretionary" does not necessarily allow an employer to act however it likes, but it can mean that payment is not automatically guaranteed in every situation.
Can an employer put anything in a contract?
A contractual term cannot remove someone's minimum legal rights. A contract cannot legally reduce an eligible person's pay below the applicable minimum wage. It also cannot simply state that someone has no right to paid statutory holiday when the law says that they do.
The written terms must still comply with employment law. This is useful to remember because signing a document does not automatically make every term lawful. At the same time, employees should not assume that something is invalid simply because they dislike it or did not notice it before signing. Contracts can contain terms that are inconvenient but still enforceable, which is why reading them carefully matters.
What should you check before signing?
The parts I would pay the most attention to are pay, expected hours, work location, notice, probation and any clauses restricting what someone can do during or after the job. It is also worth checking whether overtime is required and whether it will be paid, whether the employer can change the work location and what happens if someone wants to leave. Someone who does not understand a term can ask the employer to explain it before signing. They could also ask whether an unclear or inaccurate term can be rewritten. Keeping a copy is equally important. It is surprisingly easy to sign employment documents and then realise later that you cannot access them.
A quick note: I am an HR & Business student learning about employment law and sharing what I learn in a simpler, more accessible way. This post is for general information and education rather than legal advice. Employment rights can depend on someone's status, contract, location and individual circumstances, so current official guidance or professional support should be used for specific situations.
Last checked: August 2026. This series focuses on England, Scotland and Wales.