Starting a new job is an exciting step, but it also comes with important legal obligations. An employment contract is the foundation of the relationship between employer and employee. It sets out the rights, responsibilities, and expectations of both parties, ensuring clarity and fairness in the workplace.
What an Employment Contract Should Include
An employment contract may be written, verbal, or a combination of both. However, by law, employees are entitled to a written statement of key terms within two months of starting work. Important details usually include:
Pay: The salary or hourly rate, along with how and when payment will be made.
Working Hours: Expected weekly hours, start and finish times, and overtime arrangements.
Job Duties: A clear description of the employee’s role and responsibilities.
Holiday Entitlement: Annual leave allowance and rules on carrying leave forward.
Notice Period: How much notice is required if either side wishes to end the employment.
Sick Pay and Benefits: Information about statutory and contractual sick pay, pensions, and any additional benefits.
Having these terms clearly set out helps avoid misunderstandings and ensures both sides know where they stand.
Express and Implied Terms
Not all terms of an employment contract are written down.
Express Terms: These are the terms specifically agreed between employer and employee, either in writing or verbally.
Implied Terms: These are unwritten obligations recognised by law or custom. For example, employees must act honestly and in good faith, while employers must provide a safe working environment.
Implied terms can be just as important as express terms. They ensure that even where something is not written down, fairness and mutual respect remain central to the employment relationship.
Why Clarity Matters
Disputes often arise when terms are unclear or missing. For instance, uncertainty over working hours or duties can lead to disagreements about what is expected. A well-drafted employment contract reduces the risk of conflict by setting clear expectations from the outset.
Employers benefit from consistency and reduce legal risk, while employees gain security and transparency about their role, pay, and rights.
Conclusion
Employment contracts are more than just paperwork; they are the cornerstone of a fair and transparent working relationship. Understanding what should be included, and the difference between express and implied terms, can help prevent disputes and protect both employers and employees.
For further information on this topic or on any other legal area, please contact John Szepietowski or Kay Stewart at Audley Chaucer Solicitors on 01372 303444 or email admin@audleychaucer.com or visit our Linkedin page.
Maya Patel
This information is correct as at September 2025.
