Employment Contracts: What Every UK Business Should Know

Hiring someone isn’t just about finding the right skills. It’s about setting the right tone from the very beginning — and nothing does that better than a clear, well-drafted employment contract.

In the UK, once an individual accepts a job offer and starts working, they already gain legal rights. The days of handshake agreements are over. With employment law becoming increasingly detailed, every business—especially SMEs—must ensure their contracts are legally compliant and tailored to the role.

At Meridian Legal Services, we help UK businesses draft, review, and manage employment contracts that protect your company, clarify responsibilities, and prevent costly disputes.

Why Employment Contracts Matter

Employment contracts aren’t just admin—they’re your first layer of protection. Too many businesses treat them like a formality, only realising their importance when a workplace issue arises. At that point, the contract often becomes the most important document in the room.

A well-structured contract:

  • Prevents misunderstandings
  • Clarifies expectations on both sides
  • Helps resolve conflicts quickly and legally
  • Reflects your company’s professionalism and values
  • What UK Law Requires from Employers

Under UK law, every employee must receive a written statement of key employment terms on or before their first day. This must include:

  • Job title and description
  • Working hours and place of work
  • Salary and payment schedule
  • Holiday entitlement
  • Notice period for termination

That’s the minimum. A complete contract can—and should—go beyond the legal baseline.

What a Good Employment Contract Should Include

A solid employment contract should also cover:

  • Probationary period terms
  • Sickness and absence rules
  • Disciplinary and grievance procedures
  • Confidentiality and data protection clauses
  • Termination and notice processes
  • Post-employment restrictions (e.g. non-compete clauses)

Not all of these will apply to every role, which brings us to the next point.

One Size Doesn’t Fit All

Every employee is different, and so are their roles. Using generic templates can leave legal gaps—or worse, include clauses that confuse or conflict with actual expectations.

Examples:

  • A sales executive may need a detailed clause about bonuses and restrictive covenants.
  • A remote worker might need provisions around IT equipment and data security.
  • A part-time employee may have different notice or working time arrangements.

This is where Meridian Legal Services adds value: by ensuring every contract suits the role, complies with current law, and aligns with your company’s risk profile.

How Meridian Legal Services Supports Employers

We work closely with UK businesses to simplify contract creation and ensure full legal compliance.

Our services include:

  • Custom contract drafting for employees, contractors, and senior staff
  • Legal audits of your current employment agreements
  • Advice on supporting policies like handbooks and disciplinary procedures
  • Ongoing legal guidance for tricky HR situations or contract disputes

Whether you’re hiring your first team member or restructuring an existing team, we can help.

Why You Should Review Your Contracts Regularly

Things change. If your business has grown, changed direction, introduced hybrid work, or hasn’t updated your contracts in the last 12–18 months, it’s time for a review.

Outdated contracts can:

  • Leave your business exposed in disputes
  • Undermine disciplinary processes
  • Miss out on modern legal protections (like GDPR terms or flexible working rights)

Get It Right from the Start

A strong employment contract does more than tick a box. It gives your staff confidence and demonstrates that your business is fair, compliant, and professional. And when workplace problems arise, that same document protects you and helps guide the resolution.

Ready to Review or Draft Employment Contracts?

Whether you're starting from scratch or want to make sure your current documents are still up to date, Meridian Legal Services can help.

Get in touch today for a free consultation and let us help you build contracts that stand up — and stand for your business.