What to include in an employment contract to protect your business

Many employers still rely on outdated, generic contracts — often borrowed from old templates or patched together. That approach rarely holds up when something goes wrong, especially if the contract no longer reflects the actual working arrangement.

Whether you're a start-up hiring your first employee, a growing company formalising your team structure, or a larger business reviewing contracts after a period of change, it's worth asking whether your documentation still does what you need it to do.

If you need support reviewing or drafting your business's employment contracts, contact our solicitors.

Key clauses to include in employment contracts

There's no one-size-fits-all contract, but some terms are essential. These typically include:

• Job title and a summary of duties.
   
• Place of work and any flexibility or mobility requirements.
   
• Hours of work, including overtime or hybrid arrangements.
   
• Salary and how and when it's paid.
   
• Holiday entitlement and accrual rules.
   
• Notice periods.
   
• Reference to disciplinary and grievance procedures.
   
• Probationary period, if applicable, and how performance will be assessed.

Some of these are legally required; others are practical safeguards. But all should be tailored to the role and clearly expressed — and a solicitor can help ensure your contracts are compliant, enforceable, and fit for purpose.

Additional clauses for commercial protection

Depending on the nature of the role, you may also need clauses dealing with:

• Confidentiality during and after employment.
   
• Intellectual property ownership.
   
• Commission, bonus, or incentive schemes.
   
• Restrictive covenants — such as non-compete, non-solicit, or non-deal terms.
   
• Benefits packages, pensions, or allowances.
   
• Rules around remote working, expenses, or company equipment.

These are particularly important for client-facing roles, keyholders, or senior staff with access to sensitive business information.

Why reviewing employment contracts is essential

Employment law doesn't stand still. Your contracts might have been compliant when drafted, but that doesn't mean they are now.

The Employment Rights Bill currently before Parliament is set to introduce 28 individual reforms — from banning exploitative zero-hours contracts and fire-and-rehire practices to creating day-one rights for parental, paternity, and bereavement leave. If passed, it will fundamentally shift what employers are expected to provide.

Even if the law doesn't change, your business might. Staff may have moved to hybrid working, changed roles internally, or taken on new responsibilities. If your contracts don't reflect that, you could face difficulty enforcing them or risk undermining your own position.

Avoiding common mistakes in employment contracts

Poorly drafted contracts can lead to confusion, disputes, or unenforceable terms — especially when they haven't been reviewed for some time. The most common issues we come across include:

• Vague or overly broad restrictive covenants which are not tailored to your business and to the employee and that are unlikely to be enforceable.
   
• Unclear bonus arrangements that leave too much room for disagreement and are open to challenge.
   
• Missing clauses around confidentiality, hybrid working, or the use of company systems.
   
• A mismatch between the written contract and the reality on the ground for the employee.

Problems often arise not from what's written but from what's missing, unclear, or outdated. A solicitor can help identify these gaps and strengthen your contracts before they lead to disputes.

Professional support with employment contacts

Getting employment contracts right isn't just about compliance — it's about reducing future risk and setting clear expectations.

Our employment solicitors draft tailored contracts for businesses of all sizes, whether you're hiring someone new, formalising an internal restructure, or reviewing existing terms in light of legal changes. We'll help you put the proper structure in place and ensure your employment contracts support how your business works.

We support businesses locally and nationwide, with offices in London, Brighton, East Sussex and beyond — wherever you're based, our team is here to help.