Is a written employment contract a legal requirement?
A full contract is not, but a written statement of the main terms must be given to every employee and worker on or before their first day.
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Employment contract and contract for services (England and Wales)
An employment contract, together with the written statement of particulars required by law, sets out pay, hours, holidays, duties, notice and other key terms. A contract for services is different: it engages a self-employed contractor. Which one you need depends on how the working relationship will actually operate.
When you need one
Every employee and worker must receive a written statement of the main terms of their employment on or before their first day. Use a contract for services only where the person is genuinely self-employed.
What it should contain
Job, place and hours
Title, duties, place of work and working hours.
Pay and benefits
Salary, pay dates, overtime and pension.
Holidays and sickness
Holiday entitlement and sick pay.
Notice
Notice on each side, at least the statutory minimum.
Confidentiality and IP
Protection of the employer's information and work product.
Restrictions after leaving
Only if genuinely needed, and no wider than reasonable.
Points specific to England and Wales
- The written statement requirements are in section 1 of the Employment Rights Act 1996. Employment status, the national minimum wage and the IR35 rules apply across Great Britain.
Different rules can apply elsewhere in the UK: see the Scotland version of this guide.
Common mistakes
- Issuing the written statement late — it is required from day one.
- Calling someone self-employed when the reality is employment.
- Post-employment restrictions so wide they are unenforceable.
Quick answers
What is the difference between an employee and a contractor?
An employee works under the employer's control, personally, with mutual obligations to provide and do work. A genuine contractor runs their own business and can often send a substitute.
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Start drafting — freeBrowse all guidesReviewed 2026-09-24. General legal information about the law of England and Wales, not legal advice.