Employment Contracts and Workplace Policies

Employment contracts and workplace policies form the foundation of the employment relationship. They set out terms and conditions, rights and responsibilities, and provide clarity for both employers and employees. Clear, legally compliant contracts and policies help reduce disputes, improve workplace standards and protect your business from legal risk.

Key Employer Considerations – Contracts & Policies

Employers should ensure that:

  • all employees have a written statement of employment particulars
  • key contractual terms required by law are provided on time
  • workplace policies are clear, accessible and up-to-date
  • policies reflect current UK employment law and good practice
  • employees are aware of policies and confirm receipt
  • policies are consistently enforced and reviewed

These steps help protect employers against disputes and tribunal claims.

Employment Contracts – Core Requirements

Written Statement of Employment Particulars

Under UK law, all employees (but generally not self-employed contractors) are entitled to a written statement of employment particulars. This must be provided by the first day of employment and must include specified terms such as:

  • names of employer and employee
  • job title or brief description
  • start date
  • pay, frequency and place of work
  • hours of work and information on overtime
  • holiday entitlement and pay
  • notice periods
  • any collective agreements affecting terms

Failure to provide a written statement on time can lead to tribunal claims and financial penalties.

Key Contract Clauses Employers Should Include

In addition to statutory particulars, employment contracts should include clear wording on:

  • Probation periods and associated review processes
  • Disciplinary and grievance procedures
  • Sickness absence and pay
  • Confidentiality and data protection
  • Intellectual property
  • Restrictive covenants (where appropriate)
  • Pension auto-enrolment and benefits
  • Place of work and flexible working expectations

Clear contracts reduce ambiguity and support enforceability where disputes arise.

Workplace Policies – Why They Matter

Workplace policies explain employer expectations and the framework for consistent decision-making. They help manage behaviour, promote fairness, and protect employers from legal risk.

Policies should be written, accessible to staff, and regularly reviewed to reflect changes in law or business practice.

Essential Workplace Policies for Employers

1. Disciplinary & Grievance Policy

Sets out how conduct and performance issues are handled and how employee complaints are resolved fairly.

2. Equality, Diversity & Anti-Discrimination Policy

Explains commitment to preventing discrimination and promoting inclusion, aligned with the Equality Act 2010.

3. Sickness Absence & Return-to-Work Policy

Outlines reporting procedures, sick pay, and mechanisms for managing frequent or long-term absence.

4. Flexible Working Policy

Explains how employees can request flexible working and how requests will be considered fairly.

5. Health & Safety Policy

Explains employer and employee health and safety obligations and practical steps to reduce workplace risks.

6. Data Protection & Privacy Policy

Ensures compliance with the UK GDPR and Data Protection Act regarding employee personal data.

7. Bullying & Harassment Policy

Sets out how allegations of harassment or bullying are handled, with clear reporting mechanisms.

8. Remote Working or Hybrid Policy

Where remote or hybrid working is permitted, policies should clarify expectations, equipment, and health and safety standards.

Policy Implementation and Communication

Employers should:

  • communicate policies to employees on induction
  • confirm that employees have read and understood policies
  • store policies in an accessible place (e.g., intranet or staff handbook)
  • review policies annually or when law changes
  • provide training where relevant

Clear communication reduces the risk that policies are misunderstood or ignored.

How Contracts and Policies Work Together

  • The employment contract sets out the legal terms and conditions of the employment relationship.
  • Workplace policies provide practical rules and expectations that govern behaviour and decision-making.

Some policies can be incorporated into the contract by reference, but others remain non-contractual. Where a policy affects contractual rights (e.g. disciplinary procedures), clarity is essential to avoid disputes.

Common Legal Risks

Employers can face legal claims if contracts and policies are:

  • out of date with current law
  • ambiguous, leading to misinterpretation
  • not provided on time
  • inconsistently applied
  • silent on key issues such as disputes and change management

Regular legal review ensures that policies and contracts remain compliant and effective.

Practical Tips for Employers

To reduce risk and improve compliance:

  • Use plain, understandable language
  • Provide contracts and policies early in the employment relationship
  • Keep a documented audit trail of changes and communication
  • Train managers on applying policies consistently
  • Seek legal review when making significant updates

These steps help protect your business and promote a fair workplace.

How We Help Employers

Our employment solicitors assist employers with:

  • drafting and updating employment contracts
  • creating tailored workplace policies
  • reviewing handbooks for legal compliance
  • advising on enforceability and risk mitigation
  • representing employers in disputes involving contracts or policies

Clear, legally robust contracts and policies are a cornerstone of good HR practice and legal compliance.