The contract of employment is what defines the employment relationship. A contract is a legally binding agreement and cannot be varied unilaterally by either party. It is an agreement between an employer and employee setting out what is expected from each of them.

While contracts of employment do not need to be in writing, there is a requirement (under Sections 1-7 of the Employment Rights Act 1996) that certain terms are given in writing to an employee within two months of starting a job.

A written contract greatly reduces the chances of dispute between employer and employee as to what has been agreed. Listed below are the terms that are usually found in an employment contract.

• Names of employer and employee
• Job title
• Pay and benefits (sickness pay, pensions)
• Holiday entitlement
• Start date, finishing date and notice periods
• Place of work
• Hours of work
• Disciplinary and Grievance Procedures