Employment contracts, explained

Your employment contract is the agreement between you and your employer about the work you do and what you get for it. It exists as soon as you accept a job, and it does not have to be written down. Its terms can come from a signed document, an offer letter, a staff handbook, a collective agreement with a union, things said at interview, and rules the law puts into every contract. Whatever it says, it cannot give you less than your statutory rights, such as the minimum wage.

By law, employees and workers must be given a written statement of their main terms on their first day. After that, your employer usually needs your agreement to change those terms. If your employer breaks the contract, for example by not paying what it promised, you may be able to claim in an employment tribunal or the civil courts. This page covers Great Britain; Northern Ireland has its own employment law.

The written statement of employment particulars

GOV.UK says employers must give employees and workers a document stating the main conditions of employment when they start work. There are two parts.

On your first day, the principal statement must include:

• your employer’s name, and your name, job title and start date;
• how much and how often you will be paid;
• your hours and days of work, and if and how they may vary;
• holiday entitlement;
• where you will work and whether you might have to relocate;
• how long the job will last, if it is temporary or fixed-term;
• details of any probation period;
• other benefits;
• any training you must complete;
• for employees, the date any earlier employment started if it counts towards continuous service.

Within two months, you must get the wider written statement covering pensions, collective agreements, non-compulsory training, and disciplinary and grievance procedures.

If you do not get one

GOV.UK suggests raising it informally, then through a grievance, and then if needed asking an employment tribunal to decide what the statement should have said. If you win another claim, such as one for unlawful deductions, and your employer had not given you a proper statement, the tribunal can award compensation for that too, up to 4 weeks’ pay, subject to the weekly pay cap.

Where contract terms come from

Express terms

These are terms that have been specifically agreed, whether in writing or out loud. GOV.UK says they can be found in the written statement, the contract itself, an offer letter, an employee handbook or on a notice board, or in a collective agreement between your employer and a trade union.

GOV.UK also says an employer should make clear which parts of its documents are legally binding. If your handbook says which policies are contractual, that is a good starting point.

Implied terms

Some terms are part of your contract even if nobody wrote them down. GOV.UK gives examples:

• you will not steal from your employer;
• your employer will provide a safe and secure working environment;
• terms required by law, such as minimum holiday;
• things needed to do the job, such as holding a valid driving licence for a driving role;
• established practice, such as a Christmas bonus that has always been paid.

Statutory minimums

A contract cannot take away your statutory rights. For example, your employer must pay at least the National Minimum Wage, and section 86 of the Employment Rights Act 1996 says a contract cannot give an employee with a month’s service less than the statutory minimum notice.

Common clauses and what they do

Clause	What it covers	Guide
Notice and PILON	How much notice each side must give, and whether you can be paid instead of working it	Notice periods
Garden leave	Whether you can be told to stay at home during notice	Notice periods
Restrictive covenants	Limits on competing, poaching clients or staff after you leave	Restrictive covenants
Pay and deductions	Your pay, bonus, and anything your employer can deduct	Pay and wages
Hours and flexibility	Your hours, overtime, and whether they can be changed	Flexible working
Mobility	Whether you can be moved to another location	This page
Sick pay	Whether you get more than Statutory Sick Pay	Sick pay
Probation	A trial period at the start, and its notice terms	This page

Exclusivity clauses

Some contracts stop you working for anyone else. Acas says employers cannot use exclusivity clauses for people on zero-hours contracts, or for workers whose average weekly income is below the lower earnings limit, which Acas gives as £129 a week. Such a clause cannot be enforced against them.

Changing your contract

GOV.UK says that usually both you and your employer need to agree to a change. It expects employers to consult employees or their representatives, explain the reasons and listen to alternative ideas. Once a change is agreed, your employer must tell you about it in writing within a month.

Flexibility clauses in a contract can give your employer the right to change some conditions, such as your place of work. GOV.UK says they can only be used to make reasonable changes, giving the example that an employer could not use one to insist you move to another country with a week’s notice.

If a change is imposed on you

GOV.UK says that if your employer changes your terms without agreement, you may:

• refuse to work under the new terms;
• say you are working under protest and treating the change as a breach of contract;
• in serious cases, resign and claim constructive dismissal;
• take a case to an employment tribunal.

It also warns that if you disagree but say or do nothing, this may count as agreeing. It can help to put any objection in writing.

Dismissal and re-engagement (“fire and rehire”)

If an employer dismisses you and offers to re-employ you on new terms, GOV.UK says you may be able to claim breach of contract or unfair dismissal. The Employment Rights Act 2025 contains new protections against this practice. On 2 October 2026 they are not yet in force; the government’s timeline says they are planned for January 2027, subject to parliamentary processes.

Breach of contract claims

If your employer breaks your contract, for example by not paying notice pay, a bonus or an enhanced redundancy payment that you are entitled to, you may be able to claim.

In an employment tribunal, an employee’s contract claim must arise or be outstanding when the employment ends, and claims for personal injury, and some others such as claims about restrictive covenants or confidentiality, are excluded. There is a limit of £25,000 for claims relating to the same contract. The time limit changed recently:

• England and Wales: six months from the effective date of termination, where that date is on or after 1 October 2026. Before then it was three months.
• Scotland: the change to six months for tribunal breach of contract claims takes place on 9 November 2026. Until then the three-month limit applies.

You must contact Acas for early conciliation first, which pauses the clock.

In the civil courts, you can claim more than £25,000, and the time limits are longer. In England and Wales, a claim on a contract generally has to be brought within six years (Limitation Act 1980). In Scotland, contractual obligations are generally extinguished after five years under the rules on prescription (Prescription and Limitation (Scotland) Act 1973). Scottish cases go through the Scottish courts.

Unpaid wages can also be claimed as an unlawful deduction from wages, which has its own rules. See pay and wages.

What to check in your contract or letter

• Your job title and duties, and any clause letting your employer change them.
• Your place of work and any mobility clause.
• Hours, overtime and any flexibility clause.
• Pay, bonus and commission terms, and whether bonuses are contractual or discretionary.
• Deduction clauses allowing your employer to take money from your pay.
• Notice clause, any pay in lieu of notice (PILON) clause and any garden leave clause.
• Probation length, notice during probation and how it can be extended.
• Contractual sick pay and any enhanced redundancy policy.
• Restrictive covenants and confidentiality terms.
• Exclusivity clauses, especially if you are on a zero-hours contract or earn below £129 a week.
• Which handbook policies are contractual, and which your employer says it can change.
• The date of your written statement, and whether you got the wider statement within two months.

When to speak to a solicitor

Many contract questions can be sorted out by reading the document carefully and asking your employer. It can help to speak to a solicitor if your employer is trying to change your terms, threatening dismissal if you do not agree, refusing to pay something you believe is contractual, or relying on a restrictive covenant. A solicitor can tell you which forum and time limit applies to your own claim.

Common questions

Is my contract valid if I never signed anything?

Yes. GOV.UK says that as soon as someone accepts a job offer they have a contract with their employer, and it does not have to be written down. Terms can come from what was said, an offer letter, a handbook or what has always happened in practice. Separately, your employer must give you a written statement of the main terms from your first day.

What can I do if I have not been given a written statement?

Raise it with your employer informally, then through a grievance if needed. You can ask an employment tribunal to decide what the statement should say. If you win another claim, such as one for unlawful deductions from pay, and your employer had not given you a proper statement, GOV.UK says compensation for that failure can be up to 4 weeks' pay, subject to the weekly pay cap.

Can my employer change my contract without my agreement?

Usually not. GOV.UK says both sides normally need to agree, although a flexibility clause may let your employer make reasonable changes. If your employer imposes a change, you can refuse, or work under protest and treat it as a breach. GOV.UK warns that if you do nothing, this may count as agreeing. New protections against dismissal and re-engagement are due from January 2027.

How long do I have to claim for breach of contract?

In an employment tribunal, the claim must arise or be outstanding when your employment ends. Where your employment ended on or after 1 October 2026 in England and Wales the limit is six months; in Scotland the six-month limit applies from 9 November 2026, with three months before that. In the courts you generally have six years in England and Wales and five years in Scotland.

Is there a limit on what a tribunal can award for breach of contract?

Yes. An employment tribunal cannot order more than £25,000 in respect of contract claims relating to the same contract. Larger contract claims, and claims that are not outstanding when your employment ends, are for the civil courts, which have longer time limits: generally six years in England and Wales and five years in Scotland.

Do staff handbooks form part of my contract?

Some parts may. GOV.UK says contract terms can be found in an employee handbook or on a company notice board, and that an employer should make clear which parts are legally binding. Check whether your handbook says a policy, such as a sick pay scheme or an enhanced redundancy policy, is contractual or is guidance your employer can change.

Sources

1. GOV.UK: Employment contracts checked Fri Oct 02
2. GOV.UK: Employment contracts: contract terms checked Fri Oct 02
3. GOV.UK: Written statement of employment particulars checked Fri Oct 02
4. GOV.UK: Problems with a written statement checked Fri Oct 02
5. GOV.UK: Your employment contract, how it can be changed checked Fri Oct 02
6. GOV.UK: Changing an employment contract: making changes checked Fri Oct 02
7. GOV.UK: Changing an employment contract: dealing with problems checked Fri Oct 02
8. Acas: Terms restricting a worker's actions (updated 1 July 2026) checked Fri Oct 02
9. Employment Tribunals Extension of Jurisdiction (England and Wales) Order 1994, article 3 (claims arising or outstanding on termination) checked Fri Oct 02
10. Employment Tribunals Extension of Jurisdiction (England and Wales) Order 1994, article 5 (excluded claims, including restrictive covenants and confidentiality) checked Fri Oct 02
11. Employment Tribunals Extension of Jurisdiction (England and Wales) Order 1994, article 10 (£25,000 limit) checked Fri Oct 02
12. Employment Tribunals Extension of Jurisdiction (England and Wales) (Amendment) Order 2026, SI 2026/759 checked Fri Oct 02
13. Acas: Employment tribunal time limits (updated 1 October 2026) checked Fri Oct 02
14. Limitation Act 1980, section 5 checked Fri Oct 02
15. Prescription and Limitation (Scotland) Act 1973, section 6 and Schedule 1 checked Fri Oct 02
16. GOV.UK: Plan to Make Work Pay and Employment Rights Act, timeline update (updated 25 September 2026) checked Fri Oct 02
17. Employment Rights Act 1996, section 86 (minimum notice) checked Fri Oct 02

This guide is general information about employment law in Great Britain (England, Wales and Scotland). Northern Ireland has its own employment law. It isn't legal advice and doesn't take your circumstances into account.