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Express and implied contract terms

A guide explaining how express and implied terms operate in employment contracts, including incorporation from handbooks, collective agreements and workplace practices.

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By Sue Johnstone
Updating author: Lilia Dangi

  • Express terms are agreed between the employer and employee.
  • Terms may be incorporated from staff handbooks, collective agreements or schemes.
  • Collective agreements and handbooks are not normally incorporated into the contract unless this is express.
  • Discretionary terms are legally binding and need careful drafting.
  • Where there is no express term it may be possible to imply one.
  • Implied terms cannot override express terms.
  • Terms may be implied at common law or by legislation.

In this guide, learn about:

  • Express terms
    • Interpreting express contract terms
  • Incorporated terms
  • Collective agreements
  • Handbooks
  • Schemes
  • Incorporating policies and procedures
  • Discretionary terms
  • Implied terms
  • Terms implied by the courts
  • Future developments

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Latest updates

Updated to make reference to Saul & Co v Rashbrook, which clarified the general interpretation of express terms in employment contracts.

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About the authors

Sue Johnstone

Sue Johnstone is a freelance trainer and writer on employment law.

Sue is an experienced writer on all aspects of employment law. She specialised for many years in discrimination law and equality practice and was editor of Equal Opportunities Review from 2002 to 2017.

She has many years’ experience as a university lecturer on employment law, and is a freelance tutor on CIPD employment law courses.


Lilia Dangi
Legal Editor, Brightmine

Lilia joined the Employment Law and Compliance team as a Legal Editor in March 2025.

Lilia has over 10 years’ experience in HR, with a strong background in employment law, compliance, and governance. She has worked across major organisations including Deloitte, Santander, and Unilever, advising on complex employee relations matters, immigration and change management.

Lilia also brings experience as a CIPD tutor, delivering modules on employment law and workforce planning. She holds a Law degree, a Law Masters in Corporate Governance, and is a certified Company Secretary and CIPD Associate.

Connect with Lilia on LinkedIn.

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