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Model Employment Contract Template for England and Wales

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Key Requirements PROMPT example:

Model Employment Contract

"I need a Model Employment Contract for a senior software developer position in our London office, including remote working provisions and specific clauses about intellectual property rights, to start from March 2025."

What is a Model Employment Contract?

The Model Employment Contract serves as a standardized template for establishing employment relationships under English and Welsh law. It is designed to provide a comprehensive framework that protects both employer and employee interests while ensuring compliance with UK employment legislation. This contract should be used when establishing new employment relationships or updating existing agreements, containing all statutorily required terms and conditions including role specifications, compensation, working hours, leave entitlement, and termination provisions. It is particularly valuable for organizations seeking to maintain consistency in their employment documentation while meeting their legal obligations.

What sections should be included in a Model Employment Contract?

1. Parties: Identification of employer and employee with full legal names and addresses

2. Background: Context of employment relationship and basis of appointment

3. Definitions: Key terms used throughout the agreement

4. Position and Duties: Job title, responsibilities, and reporting structure

5. Compensation: Salary, benefits, and payment terms

6. Working Hours: Standard working hours, overtime provisions

7. Holiday Entitlement: Annual leave and public holiday provisions

8. Termination: Notice periods and grounds for termination

9. Sickness and Other Absence: Sick pay, reporting procedures and other leave entitlements

10. Confidentiality: Obligations regarding company confidential information

11. Data Protection: Employee data processing and privacy provisions in accordance with UK GDPR

12. Governing Law: Specification of England and Wales as governing jurisdiction

What sections are optional to include in a Model Employment Contract?

1. Probationary Period: Terms of initial trial period, typically used for new employees or internal promotions

2. Remote Working: Terms for working from home or alternate locations, included when flexible working arrangements are offered

3. Commission Structure: Details of sales or performance-based compensation, used for sales roles or performance-based positions

4. International Travel: Terms for overseas work and travel, included for roles requiring international travel

5. Share Options: Terms of any share option or equity participation schemes, included when applicable

6. Garden Leave: Provisions for placing employee on paid leave during notice period, used for senior or sensitive roles

What schedules should be included in a Model Employment Contract?

1. Schedule 1 - Job Description: Detailed outline of role responsibilities and requirements

2. Schedule 2 - Benefits Package: Detailed description of employee benefits and eligibility

3. Schedule 3 - Company Policies: Reference to or inclusion of relevant company policies

4. Schedule 4 - Restrictive Covenants: Non-compete, non-solicitation and confidentiality provisions

5. Schedule 5 - IT and Communications Systems Policy: Rules and guidelines for use of company IT systems and equipment

Authors

Alex Denne

Head of Growth (Open Source Law) @ ¶¶ÒõÊÓÆµ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Relevant legal definitions






























Clauses






























Industries

Employment Rights Act 1996: Primary legislation governing basic employment rights, including notice periods, unfair dismissal provisions, and mandatory statement of employment particulars

Equality Act 2010: Comprehensive legislation covering protection against discrimination, equal pay provisions, and requirements for reasonable accommodations in the workplace

Working Time Regulations 1998: Regulations governing working hours limits, rest breaks, annual leave entitlement, and holiday pay calculations

National Minimum Wage Act 1998: Legislation establishing minimum wage requirements and payment calculations for all workers

Data Protection Act 2018 and UK GDPR: Legal framework for handling employee personal data and privacy requirements in the employment context

Health and Safety at Work Act 1974: Fundamental legislation covering workplace safety obligations and responsibilities for both employers and employees

Pensions Act 2008: Legislation governing workplace pension schemes, including auto-enrollment requirements and employer obligations

Trade Union and Labour Relations (Consolidation) Act 1992: Law governing collective bargaining rights, union membership, and industrial relations

Fixed-term Employees Regulations 2002: Regulations preventing less favorable treatment of fixed-term employees compared to permanent employees

Part-time Workers Regulations 2000: Legislation ensuring equal treatment of part-time workers compared to full-time workers

Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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