WorkUnited Kingdom

The employment contract in the UK

Get a written statement of terms, know your minimum wage, holiday, notice and pension rights, and beware of zero-hours contracts.

5 min read6 steps5 documents11 words to learnNot reviewed yet

Overview

In Britain the employment relationship arises by a contract, written or oral, but you have the right from day one to receive a written statement of employment particulars, that is a written statement of the basic terms: employer, title, pay, working hours, holiday, probation period, notice period and place of work. Contract types are many: permanent, fixed-term, full-time or part-time, zero-hours, agency, and self-employed work which has fewer rights.

And employment laws protect you with a minimum wage (National Minimum Wage/National Living Wage), paid annual leave, limits on working hours and protection from discrimination. This guide explains contract types and terms, pay and hours, holiday and pension, probation, notice and dismissal, zero-hours and agency contracts, your rights and where to get help.

1

Contract types and the written statement

A permanent contract has no end date, and a fixed-term one ends on a set date or when a project ends.

  • And there are full-time contracts (about 35 to 40 hours a week) and part-time.
  • The employer must give you on or before the first day a written statement of the basic terms (and completes the remaining details within two months), including: name and address, start date, title, pay and payment date, working hours, holiday, place of work, notice period, contract duration if temporary, probation period, training, and benefits.
  • Read it and keep a copy.
  • And if it differs from the offer discuss the matter before signing.
  • And terms such as a restrictive covenant (restrictions after leaving work) and confidentiality need careful understanding.
  • Ask for a translation or consult Citizens Advice if you do not understand any term.
2

Pay and hours

The law sets a minimum hourly wage by age: the National Living Wage for those aged 21 and over (about 12.21 pounds in 2025 and rising annually) and less for those younger and for apprentices.

  • The employer must provide a payslip in writing or electronically showing gross pay and deductions of tax (PAYE), National Insurance (NI), pension and the net.
  • Working hours are set by the contract, and mostly may not exceed 48 hours a week on average unless you agree in writing.
  • You have a right to breaks: 20 minutes if you work more than six hours, and a daily rest of 11 hours and a weekly rest of 24 hours.
  • And overtime is paid if the contract provides.
  • And if you are paid less than the minimum report to HMRC or Acas.
3

Holiday and pension

The worker has the right to 5.6 weeks of paid annual leave (28 days for one working five days, and including the eight public holidays in England and Wales) according to the contract, and calculated pro rata for part-time workers and the first months.

  • And leave accrues for those on variable hours.
  • The employee must request leave in advance, and the employer may require it to be taken at certain times.
  • And on leaving work pay for unused leave is paid.
  • As for pensions the employer must automatically enrol you in a workplace pension if you are aged 22 to state pension age and earn more than 10 thousand pounds a year, with contributions from you (about 5 percent), him (at least 3 percent) and the government.
  • You can opt out but lose the money.
  • And you also receive a State Pension after 35 years of National Insurance record.
4

Probation, notice and dismissal

Many contracts include a probation period of three to six months, during which the contract may be ended with shorter notice.

  • And the notice period is by law a week for one who has worked from a month to two years, and rises by a week for every year up to twelve weeks, and the contract may set more.
  • The employee who has completed two years (under current rules, changing with the rights reforms to become nearly from day one) has the right to protection from unfair dismissal: that the dismissal be for a fair reason (conduct, performance or redundancy) and by a fair procedure.
  • In redundancy you receive redundancy pay after two years of service.
  • And dismissal for discrimination, pregnancy or whistleblowing is unlawful from day one.
  • If dismissed contact Acas within days for conciliation before an employment tribunal, and you have three months less a day to file.
5

Zero-hours, agencies and help

In a zero-hours contract the employer does not guarantee you a set number of hours, and calls on you when he needs, and you may not be permitted to work for others in some cases (exclusivity clauses are legally barred), and the worker has holiday rights and the minimum wage.

  • In agency work the agency pays you and refers you to companies, and after twelve weeks you get rights similar to the company's employees (Agency Workers Regulations).
  • And the self-employed pays his taxes himself and has no paid holiday or SSP, so beware of false self-employment, that is classifying you as self-employed when you are in reality an employee.
  • For help: Acas (0300 123 1100) free of charge, Citizens Advice, your union (Unite, Unison and GMB) and Acas Early Conciliation, and the GOV.UK Employment rights site.

Step by step

  1. 1

    Ask for a written statement of terms before day one.

  2. 2

    Check pay, hours, notice and probation.

  3. 3

    Make sure the pay is not below the minimum.

  4. 4

    Keep payslips and the contract.

  5. 5

    Make sure you are enrolled in the workplace pension.

  6. 6

    Contact Acas at any dispute.

Documents checklist

  • The contract and written statement.
  • Payslips.
  • National Insurance number.
  • P45 or P60 for tax.
  • The right to work document.

Key vocabulary

  • contract
  • salary
  • payslip
  • notice period
  • overtime
  • probation
  • pension
  • redundancy
  • holiday entitlement
  • minimum wage
  • zero-hours

Useful phrases

  • Could I have a copy of my contract, please?
  • How many days of holiday do I get?
  • What is the notice period?
  • Is this contract full-time or part-time?
  • I am not sure I am being paid the minimum wage.
  • I would like to join the pension scheme.

Discussing the contract with HR

  • HR

    Here is your contract. Please read it carefully before signing.
  • You

    Thank you. How many days of holiday do I get?
  • HR

    Twenty-eight days a year, including bank holidays.
  • You

    And what is the notice period during the probation?
  • HR

    One week during the first six months.
  • You

    Fine. I will read it tonight and sign tomorrow.

Common mistakes

  • Signing a contract you do not understand.
  • Accepting pay below the minimum.
  • Working without a contract or payslip.
  • Ignoring pension enrolment.

Cultural tips

  • Keep a record of your actual working hours.
  • Ask for any verbal promise in writing.
  • Join a union for protection.
  • Review your payslip every month.

Official links

Check yourself

Question 1 of 5

What is the written statement?