Practice Area

Employment Contracts & Policies

Employment contracts and workplace policies form the foundation of the employment relationship. For employers, they clarify expectations, protect intellectual property and confidential information, and help establish fair procedures for managing employees. For employees, they set out terms of employment, remuneration, and entitlements.

However, many contracts and policies are poorly drafted, contain unclear terms, or include clauses that are legally unenforceable or overly restrictive. This creates uncertainty and risk for both parties.

I advise employers on drafting clear, compliant, and protective contracts and policies. I also advise employees on understanding their rights and challenging unfair contract terms. My focus is on clarity, fairness, and legal compliance.

How I can help

I draft comprehensive employment contracts that are clear, compliant with law, and protective of both parties' interests

I advise on essential contract elements: job description, remuneration, notice, benefits, probation, and disciplinary procedures

I draft enforceable restrictive covenants (non-compete, non-solicitation, confidentiality clauses) that protect legitimate business interests

I advise on workplace policies ensuring compliance with ACAS Code, Equality Act 2010, GDPR, and other statutory requirements

I review existing contracts and policies, identifying legal issues, gaps, and inconsistencies

I advise employees on their rights and protections, and whether contract terms are fair and enforceable

I ensure contracts and policies reflect current employment law and recent case law developments

I advise on the practical implementation of new contracts and policies, including consultation and notice requirements

Essential Elements of an Employment Contract

The Employment Rights Act 1996 requires employers to provide certain written information within two months of employment starting. This information must include: the names of the parties, the date employment commenced, the job title and position, the rate of pay and frequency of payment, hours of work, holiday entitlement, sick leave, notice periods, any disciplinary and grievance procedures, and reference to any relevant collective agreements.

A comprehensive employment contract will cover all of these elements and more. It should clearly define the role, reporting lines, and key responsibilities. It should specify the salary, bonus structure (if any), and benefits such as pension, health insurance, and car allowance. It should set out notice periods for both the employer and employee, and any notice provisions that differ during probation.

The contract should also address intellectual property: clarifying that any work created during employment belongs to the employer (if appropriate). It should include restrictive covenants (non-compete, non-solicitation, confidentiality clauses) that protect the employer's legitimate business interests while remaining reasonable in scope and duration.

Other important clauses include: confidentiality and data protection obligations, compliance with company policies, variation clauses (allowing the employer to change terms), and dispute resolution mechanisms such as arbitration. The contract should clearly state the terms governing termination, any redundancy terms, and the grounds on which the employer can dismiss.

Restrictive Covenants and Enforceable Restrictions

Restrictive covenants are clauses that restrict what an employee can do after leaving employment. Common examples are non-compete clauses (preventing the employee working for competitors), non-solicitation clauses (preventing the employee poaching customers or staff), confidentiality clauses, and intellectual property assignment clauses.

Restrictive covenants must be carefully drafted to be enforceable. Courts will only enforce covenants that are reasonable in scope, duration, and geography. A non-compete clause preventing an employee from working for any company in the same industry worldwide for five years is likely too broad and unenforceable. However, a clause preventing a regional manager from working for a direct competitor within the local region for 6-12 months is likely reasonable.

The test is whether the covenant is necessary to protect the employer's legitimate business interests (such as confidential information, trade secrets, or established relationships with customers or staff). The covenant must be proportionate to that interest—no more restrictive than necessary.

I advise employers on drafting enforceable restrictive covenants. I also advise employees on whether restrictive covenants they're subject to are likely to be enforced and what freedom they have if they leave employment. An overly broad non-compete clause may be unenforceable, giving the employee more freedom than a narrower clause that would be enforceable.

Probation Periods and Trial Periods

Many employment contracts include a probation period, typically 3-6 months, during which the employee can be assessed before becoming permanent. The probation period allows both parties to assess whether the employment is working out. However, even during probation, the employee has important statutory rights: they must be treated fairly, they have the right to notice and pay in lieu of notice, and they cannot be dismissed for discriminatory or automatically unfair reasons.

Some employers believe probation periods give them "free rein" to dismiss without following fair procedures. This is a misconception. A probationer still has the right to unfair dismissal claims (though the tribunal threshold is slightly higher), and discrimination and whistleblowing claims apply regardless of probation status.

Notice periods during probation are often shorter than post-probation notice periods. For example, the contract might specify one week's notice during probation and one month's notice thereafter. This is reasonable and typically enforceable.

I advise employers to use probation periods wisely: to assess performance, conduct thorough inductions, and make informed decisions about permanent roles. I advise employees to understand their probation terms and to realise that probation doesn't strip away all employment rights.

Workplace Policies and Procedures

Workplace policies cover disciplinary procedures, grievance procedures, absence and sick leave policies, anti-bullying and harassment policies, data protection, use of IT and social media, and many other areas. Well-drafted policies clarify expectations, establish fair procedures, and protect both the employer and employees.

The ACAS Code of Practice on Disciplinary and Grievance Procedures, whilst not law, is highly influential. Breaching the Code can result in an uplift to compensation of up to 25% in tribunal cases. The Code sets out principles for fair discipline and grievance handling: proper investigation, notice of allegations, a hearing allowing the employee to respond and be accompanied, and a right of appeal.

Policies should be clear and accessible. Long, complex policies that employees don't read are of limited use. I advise on policies that clearly state what's expected, what the consequences of breach are, and what procedures will be followed. Policies should also be consistently applied. If a manager applies a policy more strictly to one employee than another, this can constitute discrimination or unfair treatment.

Common policy areas include: anti-discrimination and harassment, reflecting the Equality Act 2010; confidentiality and data protection, reflecting GDPR; whistleblowing, reflecting the Public Interest Disclosure Act 1998; and health and safety, reflecting relevant statutory duties.

Key Compliance Requirements

Several statutory requirements affect employment contracts and policies. The Employment Rights Act 1996 requires employers to provide specified written information. The Equality Act 2010 requires employers not to discriminate and to make reasonable adjustments for disabled employees. GDPR and the Data Protection Act 2018 set out obligations about processing employee data.

The Working Time Regulations 1998 set out rights to rest breaks, rest days, and annual leave. The National Minimum Wage Act 1998 establishes minimum wage entitlements. The Maternity and Parental Leave etc. Regulations 1999 protect pregnancy, maternity, and parental rights.

For public sector employers, the Public Sector Equality Duty applies: employers must consider the impact of their policies on people with protected characteristics. For employers with 250+ employees, gender pay gap reporting is required.

I advise employers on ensuring their contracts and policies comply with all relevant statutory requirements. I also advise employees on what their rights are under these statutes and whether their contract or employer's policies comply.

My Approach to Contract and Policy Work

When I draft employment contracts, I start by understanding the role, the seniority level, and the employer's specific concerns. I then draft a contract that's clear, comprehensive, and compliant with employment law. I address the employer's business interests (restrictive covenants, confidentiality, intellectual property) while ensuring the terms are fair and legally enforceable.

I avoid overreaching terms that are likely to be unenforceable. For example, a worldwide perpetual non-compete clause won't be enforced, so there's no point including it. Better to have a narrower clause that will be enforced.

For policy work, I advise on what policies the employer needs, and I draft policies that are clear, legally compliant, and fair. I also review existing policies to identify gaps, legal issues, or inconsistencies. I advise on the implementation of new policies, including whether employees need training or notice.

For employees, I review their employment contract and advise on what it means, what rights they have, and whether any terms are unfair or unenforceable. I also help employees understand workplace policies and their rights and obligations under them.

Common Contract and Policy Issues

Common issues I see include: vague job descriptions that later lead to disputes about what the employee is expected to do; unclear bonus or commission structures that lead to payment disputes; overly broad non-compete clauses that are unenforceable; absence of clear notice periods; probation terms that don't comply with statutory requirements; and inconsistent application of policies.

Another common issue is "garden leave"—where the employer places the employee on notice but requires them not to work and confines them to "garden leave." This is legally permissible but must be provided for in the contract. Without a contractual right to garden leave, an employer cannot compel it.

I also frequently see contracts that include terms conflicting with statutory rights. For example, a contract requiring an employee to waive their redundancy entitlements is unenforceable; statutory rights cannot be contracted out. Similarly, a contract requiring an employee to waive anti-discrimination protections is void.

I advise employers to avoid these issues through careful drafting and review. I advise employees to identify these issues and challenge them, as they're often unenforceable anyway.

Frequently Asked Questions

What must be in an employment contract?

The Employment Rights Act 1996 requires employers to provide written information including: the names of the parties, the date employment commenced, the job title, the rate of pay and payment frequency, hours of work, holiday entitlement, sick leave provisions, notice periods, any disciplinary/grievance procedures, and reference to any collective agreements. Beyond these statutory requirements, good contracts also include: job description, reporting lines, benefits, confidentiality obligations, intellectual property assignment, restrictive covenants, variation clauses, and details about probation (if applicable). Contracts should be clear, unambiguous, and fair.

Are non-compete clauses enforceable?

Non-compete clauses are enforceable only if they're reasonable in scope, duration, and geography. A clause preventing an employee from working for any company in the same industry, anywhere in the world, for five years is likely unreasonable and unenforceable. However, a clause preventing a regional sales manager from working for a direct competitor within the same region for 6-12 months is likely reasonable. Courts balance the need to protect the employer's legitimate business interests (such as confidential information or client relationships) against the employee's right to work. If a clause is unreasonable, a court will refuse to enforce it, potentially leaving the employee free to work for competitors.

Can an employer change the terms of my employment contract?

Unilaterally changing a contract term without the employee's consent is a breach of contract. However, most modern contracts include variation clauses allowing the employer to make changes, often with notice. The legality of a variation clause depends on whether it's fair, whether the employee agreed to it, and whether it's used reasonably. The employer cannot use a variation clause to fundamentally downgrade the role or salary without the employee's agreement. If the employer tries to impose changes the employee doesn't agree to, the employee can refuse and claim breach of contract, or claim constructive dismissal if the change is sufficiently serious.

What is the legal minimum notice period?

The statutory minimum notice period is one week if you've worked for the employer for at least one month. However, most employment contracts specify longer notice periods—typically one or three months depending on seniority. The notice period should be the same for both parties, unless the contract specifies otherwise. During probation, notice periods are often shorter. Both the employer and employee must give the specified notice, or pay in lieu of notice (unless the contract allows the employer to make the employee work their notice).

Can I be made to sign a new contract with worse terms?

Not without your agreement. If the employer tries to impose new terms unilaterally and you don't agree, you can refuse. If the employer then dismisses you for refusing, you may have a claim for unfair dismissal (if you've been employed for two years) or breach of contract. However, if the changes are minor, if you're given time to consider them, and if the employer genuinely consults you, they might argue the change was reasonable. If you're unhappy with proposed contract changes, seek legal advice before signing or agreeing. Don't feel pressured to sign something you disagree with.

What should I do if my employer doesn't provide a written contract?

The employer is required by law to provide written employment particulars within two months of employment starting. If they haven't, you can request them. If they still refuse, you can claim at the employment tribunal that the employer has breached their statutory duty. The tribunal can require the employer to provide the particulars. Additionally, you retain statutory rights regardless of whether you have a written contract. You can still claim unfair dismissal, discrimination, or other claims. However, a written contract provides important clarity and evidence, so I advise insisting on one.

Can my contract override my statutory rights (such as the minimum wage, holiday entitlement, or anti-discrimination protections)?

No. Statutory rights under employment law cannot be contracted out. A contract clause that attempts to waive anti-discrimination protections, minimum wage entitlements, holiday rights, or maternity rights is void and unenforceable. The statutory rights apply regardless. A contract can only add to statutory rights, not subtract from them. For example, if the law requires two weeks' annual leave, a contract requiring only one week is void; you retain the statutory two weeks. Similarly, a clause agreeing to waive anti-discrimination protections is void.

What should a confidentiality clause include?

A confidentiality clause should clearly identify what information is confidential (such as trade secrets, business strategies, client lists, financial information, product development plans). It should apply during employment and after. However, the employee should always have the right to disclose information if: required by law, to comply with legal proceedings, or if required to make a protected disclosure (whistleblowing). Confidentiality clauses should be reasonable in scope and duration—typically lasting for a period after employment (say, 2-5 years for trade secrets, less for general business information). Overly broad confidentiality clauses that prevent disclosure of any information indefinitely may be unenforceable.

If you need an employment contract drafted or reviewed, or if you're implementing new workplace policies, contact me for expert advice. For employees, I'll review your contract and advise on your rights. For employers, I'll ensure your contracts and policies are legally compliant and protective.

Get in touch for a no-obligation initial conversation about your matter.