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Updated 05.06.2024

Standard employment agreement 

A versatile employment contract for all types of employees, full-time or part-time, permanent or fixed-term, with additional benefits, obligations or restrictions.

Use this contract: 

  • To employ an employee of any kind, from trainee to senior manager, from manual worker to office staff.
  • If you want to employ an employee on a permanent or fixed-term basis, full-time (100%) or part-time.
  • Whether the salary is gross or net, annual, monthly or hourly, paid in 12 or 13 monthly instalments, or otherwise.
  • Whether or not you want to give the employee more benefits than are provided for by law.
  • Whether or not you wish to impose more restrictions and responsibilities than are provided for by law.

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This agreement is governed by laws of England and Wales and complies with collective labour agreements (CLA)

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Protect yourself legally as an employer with the following options: 

  • Restrictions on non-disclosure, non-solicitation and non-competition, even after employment, with penalties. 
  • Extensive monitoring measures, obligation to record working hours and submit to regular checks. 
  • Clear definition of working hours and breaks, with a general obligation to work overtime, travel and take business trips. 
  • Possibility of payment in lieu of dismissal leave, suspension from work as a disciplinary measure, and immediate termination for cause. 
  • Duty of loyalty, diligence, and obligation to return equipment and tools in the same condition, with limits on coverage of expenses and use of equipment or vehicles. 

Offer the employee the following protection and benefits: 

  • Bonuses and benefits of all kinds, including training funding, sales commission, performance-based and non-performance-based bonuses. 
  • Longer holidays, extended redundancy leave, no trial period and seniority pay. 
  • Salary net of any tax or social security contributions, 13th salary, shorter payment periods and right to tips. 
  • Flexible working hours, paid lunch break and home office policy. 
  • Company car or card, parking space, equipment, tools, or other expenses covered, including lump-sum payments. 

Basic employment contract

A basic employment contract is a legal document between an employer and an employee that outlines the duration, terms of work, and remuneration. With this comprehensive template, you can create a valid working contract, ranging from a standard work agreement to the most complex employment document.

A company or business may use a basic job contract template:

  • For full- or part-time, open-ended, or fixed-term employment.
  • For hiring a worker for any kind of job, from an executive manager to a trainee.
  • With a base salary or additional bonuses, incentives, and plans.

Key aspects of a basic employment contract

An employment agreement template lays out the duties of the employee and the employer, reminding the parties of the legal obligations and restrictions that apply by law. Highly regulated, any employment relation is subject to numerous statutory restrictions, for example:

  • National minimum wage (NMW)
  • Minimum paid leave entitlement
  • Maximum work schedule and rest periods
  • Minimum termination notice
  • Maximum duration of non-compete covenants
  • Etc.

Seven tips on a basic employment contract

Our basic employment agreement template protects the employer’s legal interests, for example:

  • Clear limits of what choices can be made within the legal boundaries
  • Intuitive explanations of statutory limits and minimum requirements
  • Various restrictive covenants and protective measures for the company
  • Reminder and reinforcement of workers’ legal duties, such as confidentiality and diligence.

With the basic employment contract template you can also go above and beyond the legal requirements, for example:

  • Variable salary, commission, bonus, and education sponsorship
  • Expenses allowance, company card, tools, and company vehicle
  • Greater termination notice, seniority bonus, and intellectual property rights.

Create a basic employment contract with AdminTech

Using AdminTech online document builder and a basic work contract template, the only required thing is to fill in the fields with the appropriate information, tailoring the document to the specific situation.

A professional employment agreement covers the following information:

  • Employee’s name and address
  • Job title and requirements associated with this position
  • Working schedule, hours, breaks and vacations
  • Salary and payment terms
  • Probation period, duration, and termination notice.

FAQ on a basic employment contract

What’s the difference between an employee and a consultant?

You should not use a basic employment contract for a consultant or freelancer. They are not considered employees, although the distinction can be quite difficult. In essence, an independent consultant:

  • Has multiple clients
  • Defines their own schedule and working hours
  • Assumes their own costs and expenses
  • Acts as an independent service provider vis-à-vis the market.


What are the maximum working hours in the UK?

The working hours for a full-time employee should not exceed 48 hours per week, averaged over 17 days.

In our simple employment contract sample, you can define the working hours, the schedule, and the lunch break to your preference, within the statutory limits.


What is the minimum paid leave in the United Kingdom?

Any employee is entitled to a minimum paid vacation of 20 working days a year. Our employment agreement template will further explain that:

  • Vacations are reduced proportionally to an incomplete year of work
  • Annual leave is reduced proportionally in the case of part-time employment
  • Vacations should be taken in kind, and compensation is only possible upon termination
  • The employee may be required to take company holidays off.


What is the termination notice for an employee in the UK?

A fixed-term agreement comes to an end automatically on a specified date.

If you choose an open-ended option in our basic employment agreement template, you may choose a longer notice period, or apply a statutory notice of:

  • 1 week as of 2nd month of employment
  • 2 weeks as of 2 years of employment
  • An additional week for each subsequent year of service, up to a maximum of 12 weeks, unless otherwise agreed in the contract.


How long is the probation period in the UK?

A probation period generally does not exceed 6 to 12 months. However, a minimum termination notice applies as of the 2nd month of employment, regardless of having selected a trial period in the basic employment agreement template.


Is a non-competition clause in a work contract valid?

Yes, you can restrict the employee from competing with the business by choosing this option in our basic employment contract template, subject to the following rules:

  • Limitation to activity and territory
  • Limitation to time (maximum 3 months)
  • Justification by employer’s interest and circumstances
  • Written form of restriction.


What is an exclusivity clause in the employment agreement?

Unlike non-compete, an exclusivity clause restricts the worker from performing any similar activity during the employment relationship. In our basic job contract template, you have 2 options:

  • Complete prohibition of ancillary work for full-time employees
  • Restriction to work for competitors during the time of employment.

What is the penalty for breaching non-compete?

Non-compete, non-solicitation, non-circumvention, or exclusivity clause – whatever you select from our simple employment contract sample, may give rise to a lump-sum penalty for each act of breach that you can define freely, as long as it is justified and not excessive.


Can the employment agreement be terminated early?

Early termination of standard work agreement is possible in the following cases:

  • Termination during probation within the 1st month of employment
  • Termination by mutual consent of both parties
  • Immediate dismissal for serious misconduct.


Are employees entitled to work from home?

You can select an option of full-time or occasional home office work in our basic work contract template. Sometimes, the employees are entitled to a flexible schedule after a certain duration of work, which must be discussed on a case-by-case basis.


How can employers ensure a successful employment experience?

To ensure a successful employment experience, it’s generally advisable for employers to:

  • Clarify whether a freelancer, a consultant, or an individual subcontractor may qualify as an employee or worker.
  • Draft a basic employment contract and tailor it to your specific needs using our sample.
  • Observe the national minimum wage and other limits and restrictions that are highlighted in our guidelines, embedded in the online document builder.
  • Decide if you want to grant any additional rights to your employee.
  • Determine if you would like to apply additional duties, restrictions, or penalties within the limits of the law.
  • Keep track of timesheets, record all evaluations and disciplinary measures, and make sure to remind the employee of their obligations and rights regularly.
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