Employment Contracts: What Every SME Needs to Know

A well-written contract of employment isn't just a legal requirement, it's one of the best ways to protect your business and set clear expectations with your team from day one.

Why contracts matter

Under UK employment law, every employee is entitled to a written statement of particulars from their first day of employment. But a good contract goes beyond the legal minimum. It sets out the working relationship clearly, so both you and your employee know exactly where you stand.

Without a proper contract, you could find yourself in a difficult position if a dispute arises. Issues around notice periods, restrictive covenants, working hours, and pay can all become complicated without clear documentation.

What should be included?

At a minimum, your contracts should cover:

• Job title and description of duties
• Start date and continuous employment date
• Pay, hours, and place of work
• Holiday entitlement
• Sickness absence and sick pay arrangements
• Notice periods
• Pension arrangements
• Disciplinary and grievance procedures

Beyond the basics, you may also want to include clauses around confidentiality, restrictive covenants, probationary periods, and any specific arrangements relevant to your business.

Common mistakes we see

The most common issue we come across is businesses using generic templates downloaded from the internet. These often contain clauses that don't apply to your business, miss important protections, or use language that's difficult to enforce.

Another common mistake is not updating contracts when things change, such as a promotion, a change in working hours, or new legislation.

Our approach

At Evolved HR, we write every contract from scratch, tailored to your business. Your company name, your terminology, your processes. We make sure every clause is clear, enforceable, and written in plain English so you and your team actually understand what's been agreed.