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Help for small firms

The new employee's contract: A step-by-step guide

The new employee's contract - Step 1

What you must include

The Written Statement of Terms and Conditions of Employment must include:

  • job title and a brief description of the main duties of the role
  • name of the employer and its address, and employee and their address.
  • employee's start date.
  • pay - how much, whether weekly or monthly, and dates when and how it will be paid.
  • any benefits, such as company car or private health insurance
  • pension - key details of the company scheme
  • hours of work - the number the employee will be contracted to do in a working week, plus details of normal working hours and break time, and any conditions regarding flexibility of hours.
  • location/s where the employee will regularly work, including any outside the UK. If the employee is being taken on to work overseas for more than one month, you should outline any conditions
  • holidays - annual leave entitlement, any conditions when it can be taken and what unused leave can be carried over to the next year, plus bank holiday entitlement
  • details of sick leave pay
  • length of any probationary period and conditions
  • whether the post is permanent, or fixed-term or temporary with the date it ends
  • periods of notice - how long beforehand an employee must tell their employer they are leaving, and how much notice the employer must give the employee if they are letting them go.
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