Employment contract requirements in the UK: how to check your contracts are compliant

UK employers must give every employee and worker a written statement of employment particulars. The principal statement is due on day one and the wider written statement within 2 months.

If your templates were last updated before 2026, they probably need revising. The Employment Rights Act 2025 is changing what your contracts need to say. Statutory Sick Pay (SSP) has applied from day one since 6 April 2026, so waiting-day wording has to come out. Probation clauses need a review before 1 January 2027, when unfair dismissal protection starts after six months. A written statement of the right to join a trade union is also due from January 2027.

Employment Tribunal time limits doubled from three to six months on 1 October 2026. That does not change what a contract must contain, but it gives workers longer to bring a claim, so any breach in your paperwork stays live for longer.

This guide covers what the law requires, where contracts commonly fall short, and how to audit your own paperwork.

Key takeaways

Question Short answer
Is a written statement the same as a contract? Not necessarily. The statement covers the core terms, and a contract is usually wider. A contract that includes every required particular satisfies section 1 of the Employment Rights Act 1996, and this is the most common approach. The details can also sit in a separate document, such as an offer letter.
When is it due? Principal statement on day one. Wider written statement within 2 months.
How fast must changes be notified? In writing, within one month of the change.
Who gets one? Employees and workers, including zero-hours staff.
Can rolled-up holiday pay be used? Only for irregular-hours and part-year workers, at 12.07%, itemised on the payslip.
What changed in 2026? SSP payable from day one on 6 April 2026. Tribunal time limits doubled to six months on 1 October 2026.
What changes next? Unfair dismissal rights after six months, and the trade union statement duty, both expected on 1 January 2027.

What is a written statement of employment particulars, and is it the same as a contract?

A written statement of employment particulars is a document setting out the main terms of someone’s job. The duty comes from section 1 of the Employment Rights Act 1996. Most employers meet it by putting every required particular in the employment contract. That means one document can do both jobs, though the statement itself is narrower than a contract.

A contract can and should go further than the statement. The statement covers the core terms only, while a contract usually deals with wider matters such as restrictions after employment ends, deductions from pay and confidentiality. If you keep the particulars in a separate document, such as an offer letter, the two documents must be consistent with each other. Where they conflict, you risk disputes over which terms apply.

The statement is split in two:

  • Principal statement: the main document, due on the first day of employment.
  • Wider written statement: the remaining particulars, due within 2 months of the start date.

Employers must also tell employees and workers in writing about any change to the statement within one month of making it.

What must be in a written statement of employment particulars?

GOV.UK sets out what the principal statement must include at minimum. Use this table as a template check.

Item What to state
Parties Employer’s name; employee’s or worker’s name
Role Job title or a description of the work
Start date Plus the date a previous job started, if it counts towards continuous employment (employees only)
Pay How much, and how often
Hours Hours and days of work, whether they can vary, and any Sunday, night or overtime working
Holiday Entitlement, and whether it includes public holidays
Place of work Where, and whether relocation is possible; the employer’s address if work is in several places
Duration How long the job is expected to last, with an end date for fixed-term roles
Probation Its length and conditions
Other benefits For example, childcare vouchers or lunch
Training Obligatory training, whether or not you pay for it

If someone works outside the UK for more than a month, the principal statement also needs the length of time abroad, the currency, any extra pay or benefits and the terms for returning.

Three further items are also due on day one. You can include them in the principal statement or put them in a separate document the worker can reasonably access, such as your intranet:

  • sick pay and procedures
  • other paid leave, including maternity and paternity leave
  • notice periods

The wider written statement, due within 2 months, covers pensions, collective agreements, any non-compulsory training you offer, and disciplinary and grievance procedures.

What are the most common gaps in UK employment contracts?

Most compliance problems come from templates that were fine once and never updated. These are the ones to look for first:

  • Holiday clauses that skip public holidays. The statement must say whether the entitlement includes them.
  • Vague hours. “Hours as required” does not meet the duty to state hours, days and how they may vary.
  • Waiting-day sick pay wording. Any reference to SSP starting after three days is out of date since 6 April 2026.
  • Probation periods with no review process. The law does not require reviews, but a six-month probation now ends at the point an employee gains unfair dismissal protection (from 1 January 2027), so documented reviews matter far more.
  • No notice terms in the day-one documents. Notice periods are a day-one item.
  • A wider statement that never gets sent. Many employers issue the principal statement and forget the 2-month deadline.
  • Changes made by email or conversation. The one-month written notification still applies.
  • Legacy contracts. Staff who joined before your last template refresh often have the oldest wording.

Can employers use rolled-up holiday pay in contracts?

Yes, but only for irregular-hours workers and part-year workers, and only for holiday years starting on or after 1 April 2024. Rolled-up holiday pay means paying holiday as a percentage uplift on each payslip instead of paying it when the worker takes leave.

Three conditions apply under the Working Time Regulations 1998 as amended:

  1. The uplift is 12.07% of pay for work done.
  2. It is paid at the same time as pay for that work.
  3. It is itemised separately on the payslip.

An irregular hours worker has contractual hours that are wholly or mostly variable in each pay period. A part-year worker is required to work only part of the year, with unpaid gaps of at least a week.

Rolled-up holiday pay is still unlawful for workers with regular hours. Applying it across the whole workforce is the most common mistake, along with leaving the separate payslip line out.

Here’s a worked example.

A café pays a zero-hours barista £1,000 for work done in March. A compliant rolled-up payment adds £120.70 (12.07% of £1,000), shown on the payslip as its own line, giving a total of £1,120.70.

A common mistake is to pay the same total as a single figure, with the payslip simply showing £1,120.70 and no split between pay for work done and holiday pay. The amount is right, but the arrangement doesn’t comply because the holiday pay isn’t itemised separately. The same applies to an hourly rate with the uplift built in.

If the café applied the uplift to a barista on fixed 30-hour weeks, the arrangement would be unlawful, and the holiday pay would still be owed.

Check the contract says rolled-up holiday pay applies, to whom, and at what rate. Acas advises consulting affected workers before introducing it, and the contract may need varying to do so properly.

Which contract terms need updating for the Employment Rights Act 2025?

The Employment Rights Act 2025 received Royal Assent on 18 December 2025 and is being phased in. These are the changes that touch contract wording or onboarding documents:

Timeline of Employment Rights Act 2025 changes affecting UK employment contracts: SSP from day one on 6 April 2026, Employment Tribunal time limits extended to six months on 1 October 2026, and unfair dismissal after six months, the trade union statement and fire and rehire restrictions expected from 1 January 2027.
Date Change What to update
6 April 2026 (in force) SSP payable from day one of sickness absence, and the Lower Earnings Limit removed Remove waiting-day wording and any earnings-threshold wording from sick pay clauses
6 April 2026 (in force) Paternity leave and unpaid parental leave become day-one rights. Pay rules are unchanged: statutory paternity pay still requires around six months’ service, and parental leave is unpaid Update leave wording so it no longer links entitlement to length of service. If you choose to pay paternity pay from day one, state that in the contract or particulars
1 October 2026 (in force) Employment Tribunal time limits extended from three to six months Keep documents and records for longer, as claims can arrive later
1 January 2027 (expected) Written statement of the right to join a trade union, given to new workers with the section 1 statement and to existing workers on a regular basis Add a step to your onboarding checklist and plan how you will reach existing staff
1 January 2027 (expected) Unfair dismissal qualifying period cut from two years to six months; compensation cap removed Review probation clauses and early-dismissal procedures
January 2027 (expected) Restrictions on fire and rehire Review any clause allowing unilateral changes to terms

The trade union duty was due on 30 October 2026, but the government’s consultation response of 25 September 2026 moved it to 1 January 2027. And employees with six months’ service on 1 January 2027 will gain unfair dismissal protection straight away. Further measures, offering guaranteed hours for zero-hours workers, are expected during 2027 with dates still to be confirmed. Check GOV.UK for the latest commencement regulations before you finalise any template.

What will the trade union statement involve?

The government will publish a standard statement of the right to join a trade union. Employers cannot change its wording, except to add workplace details such as recognised unions and statutory access agreements. You must also link to the Certification Officer’s list of trade unions or provide a copy alongside it.

New workers receive the statement with their section 1 statement. Existing workers must also receive it. Employers can give it to them directly each year by 5 April, or make it permanently accessible and send an annual reminder of where to find it. The statement must be reissued within one month if a recognised union or access agreement changes.

How does the SSP change affect contract wording?

Since 6 April 2026, Statutory Sick Pay (SSP) is payable from the first day of sickness absence, and employees no longer need to earn at least the Lower Earnings Limit to qualify. Lower earners receive the lower of the flat weekly rate (£123.25 from 6 April 2026) or 80% of their average weekly earnings. Any clause that refers to waiting days or a minimum earnings level needs to come out. Check enhanced company sick pay terms at the same time.

What happens if an employer does not provide a compliant written statement?

An employee or worker can bring a claim to an Employment Tribunal if the statement is missing, late or inaccurate. Where they win a separate employment claim and the statement was not provided or was wrong, the tribunal can make an additional award on top. That award is either 2 or 4 weeks’ pay.

Missing paperwork also weakens your position in other disputes. If a worker challenges their holiday pay and your contract is silent or contradictory, you have less to point to. With the Employment Tribunal time limit now six months, those disputes can surface later than they used to.

How can employers check their contracts are compliant?

Run each live template through this checklist. Start with your newest-hire contract, then work back to legacy ones.

  • Compare the template line by line with the GOV.UK principal statement list above.
  • Confirm sick pay, other paid leave and notice periods are included or clearly signposted.
  • Check the holiday clause states entitlement, the leave year and whether public holidays are included.
  • Check any rolled-up holiday pay clause meets all three conditions and applies only to eligible workers.
  • Remove waiting-day and minimum-earnings wording from sick pay clauses.
  • Review probation length and make sure managers hold documented reviews.
  • Confirm someone owns sending the wider written statement within 2 months.
  • Confirm every contract change is notified in writing within one month.
  • Add the trade union rights statement to your onboarding pack once the government publishes its standard wording, and decide how existing staff will receive it.
  • Review holiday record-keeping, as new rules require employers to keep holiday records for six years.
Here’s an example.

A hospitality employer with 40 staff uses a 2022 template for all new starters. On review it finds that the holiday clause is silent on public holidays, sick pay refers to three waiting days, and zero-hours bar staff receive a 12.07% uplift with no separate payslip line. The fixes are an amended holiday clause, new sick pay wording and a payroll change to itemise holiday pay. Each takes under a day to correct, but left alone, each is a potential claim.

How long should a probation period be after 1 January 2027?

There is no single right length. Set the probation period at the time you realistically need to assess the role. Citation’s guidance is that three to four months suits many businesses, and four months is becoming a common default, because employees will have unfair dismissal protection after six months’ service.

A six-month probation leaves no margin. If you pay in lieu of notice, the statutory notice period of one week is added to the employee’s service. A missed or rearranged review meeting, or a period of sickness, can also push a dismissal past six months, and extending probation does not stop the clock. Whatever length you choose, set clear performance standards, hold documented reviews, and update the contract to match.

FAQs

When must an employer give a written statement of employment particulars?

The employer must give the principal statement on or before the first day of employment and the wider written statement within 2 months of the start date. GOV.UK sets out both deadlines.

Is a written statement the same as an employment contract?

No, a written statement is not an employment contract. The contract is the legal agreement; the statement records the main terms of it.

Is rolled-up holiday pay legal in the UK?

Yes, but only for irregular-hours and part-year workers in holiday years starting on or after 1 April 2024. It must be 12.07% of pay for work done and itemised separately on the payslip. For regular-hours workers it remains unlawful.

Do zero-hours workers need a written statement?

Yes. The duty applies to employees and workers, which includes zero-hours workers. The statement should explain how their hours may vary.

How long does an employer have to notify a change to contract terms?

One month from making the change. The employer must tell the employee or worker in writing.

Do employers need to change contracts for Statutory Sick Pay from day one?

Yes, if the contract or policy mentions a waiting period or a minimum earnings level. SSP became payable from day one of sickness absence on 6 April 2026, and the Lower Earnings Limit no longer applies, so that wording should come out. Enhanced company sick pay terms should be checked at the same time.

Will employers need to tell staff about the right to join a trade union?

Yes. The Employment Rights Act 2025 requires a written statement of the right to join a trade union. The government expects the duty to start on 1 January 2027 and will publish a standard statement, most likely in November, for employers to use. New workers get it with their section 1 statement, and existing workers must receive it on a regular basis, expected to be annually by 5 April.

Not sure where your contracts stand?

Contracts tend to get updated when something goes wrong, not before. If your templates haven’t had a proper look since before 2026, it’s worth checking them now. A few small gaps in holiday wording, sick pay terms or probation clauses are much easier to fix before they turn into a claim.

Citation’s employment law team reviews employment contracts and written statements against current UK law. We’ll show you where your paperwork falls short and what needs to change. You also get a clear view of what’s coming next, including the unfair dismissal and trade union changes expected on 1 January 2027, so your documents are ready ahead of time.

If you’d like a second pair of eyes, we’re happy to help. Talk to our team about a contract review.

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