Contract of Employment

Contract of Employment: Create a Verified Employment Contract

A verified contract of employment sets out the terms on which someone works for you, including their job, pay, hours, holiday, notice and the rules that protect your business. Robot Lawyer drafts the contract from your answers, under the employment law of the country or state where the employee works. On the Verified plan, a legal professional checks it before you issue it.

CONTENTS

What Is a Contract of Employment?

An employment contract is the legally binding agreement between an employer and an employee. It records what each side has agreed: what the employee will do, what they will be paid and how the relationship can end. A clear written contract helps prevent disputes and makes expectations clear from day one.

It sits alongside the employee's rights under employment law. A contract can give more than the legal minimums, such as extra holiday or a longer notice period, but in most countries it cannot take away statutory rights.

Do You Need a Written Employment Contract?

• UK only
  Every employee and worker must receive a written statement of the main terms of employment on or before their first day. A well-drafted contract of employment meets this requirement and goes further.
• United States
  Written contracts aren't generally required, and most employment is "at will" unless agreed otherwise (Montana is the main exception). Many employers use a written agreement or offer letter to record pay, duties, confidentiality and other key terms.
• Other countries
  Many countries, including EU member states, require written terms to be given within a short period after work starts. Your contract follows the law of the place where the employee works.

What's Included in Your Contract?

• The parties and start date
  The employer, the employee, the start date and the date continuous employment began.
• Job title and duties
  The role, who the employee reports to and their main responsibilities.
• Place of work
  Where the employee will work, including any remote or hybrid arrangement.
• Pay and benefits
  Salary or hourly rate, when it is paid, and any bonus, pension or other benefits.
• Hours of work
  Normal working hours, days and any overtime arrangements.
• Holiday and sick pay
  Paid leave, public holidays and what happens when the employee is off sick.
• Probationary period
  The length of any probation and the notice during it.
• Notice and termination
  How much notice each side must give and how the employment can end.
• Confidentiality and intellectual property
  Protection for your business information and ownership of work the employee creates.
• Policies and procedures
  References to disciplinary, grievance and other policies.

Key Clauses to Consider

• Restrictive covenants
  Limits on competing with you, poaching clients or poaching staff after the employee leaves. They must be reasonable to be enforceable, and some places restrict or ban them, such as non-competes in California.
• Garden leave
  Lets you keep the employee away from work during their notice period, while still paying them.
• Payment in lieu of notice (PILON)
  Lets you end the employment immediately by paying for the notice period instead.
• Deductions from pay
  Allows you to recover sums the employee owes you, where the law permits.
• Flexibility to change duties or location
  A reasonable right to adapt the role as the business changes.

UK only: notice from the employer cannot be shorter than the statutory minimum. That is one week once the employee has worked for one month, then one week for each complete year of service from two years, up to 12 weeks.

How It Works on Robot Lawyer

1. Answer the questions
   Tell us about your business, the employee, the role, pay, hours, holiday and any special terms.
2. Generate your contract
   We draft a clear contract under the law of the place where the employee works, including the information that law requires.
3. Get it verified
   On the Verified plan, a qualified legal professional checks the contract within 24 hours and makes amendments where needed. See how our documents are verified.
4. Sign and share
   Both sides sign, and the employee keeps a copy. Issue it before the employee starts if you can.

How Much Does It Cost?

Robot Lawyer is a subscription. The Essentials plan is £13.99 a month, and the Verified plan, which includes verification of your finished contract by a legal professional, is £24.99 a month. Both start with a 7-day free trial. See our pricing.

Contract of Employment FAQs

Is a contract of employment the same as a written statement of particulars?

UK only: not quite. The written statement is the legal minimum list of terms. A contract of employment usually includes all of those terms plus extra protection, such as confidentiality, restrictive covenants and garden leave.

Can I change an employee's contract later?

Usually only with the employee's agreement, unless the contract has a clear and reasonable right to make that type of change. Record any agreed change in writing, for example with a Change of Employment Terms Letter.

What's the difference between an employee and a contractor?

An employee works under your control as part of your business and gets employment rights. A contractor runs their own business and is engaged for specific work. Use an Independent Contractor Agreement for contractors. Calling someone a contractor doesn't decide their status: how the relationship actually works does.

Can I include a probationary period?

Yes. Probation lets you assess a new employee, often for three to six months, with a shorter notice period. The employee's legal rights still apply during probation.

Do employment contracts have to be signed?

In most countries a contract can be binding without a signature if the employee starts work on the agreed terms. Getting both parties to sign gives clear evidence of what was agreed.

Is an employment contract the same in every country?

No. Minimum pay, holiday, notice, working time and termination rules vary widely, so the contract must follow the law where the employee works. Robot Lawyer drafts for the location you choose.

Create a Verified Contract of Employment

Hire with confidence. Related documents: Employment Offer Letter, Non-Compete Agreement, Non-Disclosure Agreement and Employee Privacy Notice.