How to review an employment contract in the UK: what to look for
Most people receive an employment contract, skim it, and sign it. This is understandable — contracts are long, written in dense language, and there is an implicit pressure to accept what has been offered. But an employment contract governs your working life for as long as you stay in that job, and some of its clauses may affect you long after you leave.
Here is what to look for before you sign.
Salary and payment terms
The contract should state your salary clearly, along with when you will be paid — monthly, weekly, or otherwise — and by what method. Check whether the salary is described as a basic salary or an all-inclusive salary, because some employers include allowances or bonuses in the headline figure that are not guaranteed.
If you have been promised a bonus, check whether it is contractual or discretionary. A discretionary bonus can be withheld without explanation. A contractual bonus sets out the conditions under which it will be paid and creates an enforceable obligation.
Working hours and overtime
Your contract should specify your normal working hours. Under the Working Time Regulations 1998, your average working week cannot exceed 48 hours unless you have signed an opt-out. Many employment contracts include an opt-out automatically — check whether yours does and whether you are comfortable with this.
Overtime provisions vary significantly. Some contracts require you to work overtime without additional pay. Others specify an overtime rate. Some are silent, which creates ambiguity. Make sure you understand what is expected.
Probationary period
Most employment contracts include a probationary period — typically three to six months — during which the notice period for termination is shorter and performance expectations are being assessed. Check how long your probationary period is, what the notice period is during that period, and what happens if you fail it.
Notice period
Your notice period determines how much warning you must give before leaving and how much notice your employer must give before dismissing you. Notice periods vary enormously — from one week to six months or more for senior roles. The contractual notice period must be at least as long as the statutory minimum, which is one week after one month of service, rising to one week per year of service up to 12 weeks.
Consider whether your notice period is practical. A six-month notice period significantly limits your ability to move to another employer quickly if an opportunity arises.
Restrictive covenants
Restrictive covenants — sometimes called post-termination restrictions — are clauses that limit what you can do after leaving the job. Common types include non-compete clauses that prevent you from working for competitors, non-solicitation clauses that prevent you from approaching former clients, and non-dealing clauses that prevent you from doing business with former clients even if they approach you.
These clauses must be reasonable to be enforceable. A UK court will not enforce a restriction that goes beyond what is necessary to protect the employer's legitimate business interests. However, even an unenforceable clause can be intimidating and expensive to challenge.
If your contract contains restrictive covenants, check their duration (typically six to twelve months is reasonable), geographic scope, and the activities they cover. Overly broad restrictions are worth negotiating.
Intellectual property
If you create anything in the course of your employment — software, designs, written content, inventions — the contract will typically assign ownership to your employer. Check whether the IP clause extends to work created outside working hours using your own equipment, and whether it covers areas outside your job description.
If you have a side project or freelance work, make sure the contract does not inadvertently assign ownership of that work to your employer.
Getting a contract reviewed
PaperSafe reviews employment contracts in plain English, flagging the clauses above and any others that carry risk. Upload your PDF and receive a complete review in under 2 minutes for £49 — before you sign something you cannot easily undo.
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