How to draft an employment contract

By Greg Chambers

Decide what type of employment contract is suitable for the employee and their role.

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• Recognise the importance of having a written employment contract
• Consider including the written statement of employment particulars in the employment contract
• Decide what type of employment contract is suitable
• Consider including a probationary period
• Tailor certain key terms to the employee and their role
  • Continuity of employment
  • Job duties
  • Place of work and mobility
  • Hours of work
  • Pay
  • Notice period (and PILON)
• Confirm whether there is a collective agreement
• Include terms on pension entitlement
• Common clauses to consider
  • Expenses clauses
  • Company cars and car allowances
  • Health benefits
  • Sickness absence reporting
  • General right to change contract terms
• Decide extent of terms needed to protect the business
  • Compliance with rules, policies and procedures
  • Protecting against bribery risks
  • Securing intellectual property rights
  • Garden leave
  • Confidential information and trade secrets
  • Post-termination restrictions
• Beware of including unenforceable clauses
• Consider the relationship between the contract and policies and procedures
  • Ensure that the employee signs the employment contract

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