7 Employment Contract Mistakes Small Employers Make in England and Wales

Hiring someone is exciting. The paperwork is not. But a weak employment contract is one of the easiest ways to create problems for yourself later.

Here are seven mistakes small employers make in England and Wales, and how to avoid them.

1. Not giving the written statement on time

A contract exists as soon as someone accepts a job offer, and it does not have to be written down (gov.uk). But you still have a legal duty to provide a written statement of employment particulars.

Under section 1 of the Employment Rights Act 1996, the statement must be given no later than the beginning of the employment. In practice, gov.uk says the main details must be given on the first day, and a wider statement within two months of starting.

The main details include the employer's and employee's names, job title or description of the work, start date, pay and how often it is paid, hours and days of work, holiday entitlement, place of work, probation terms, notice periods and sick pay information.

Fix: Have the contract ready before day one, not weeks later.

2. Vague job descriptions

"General duties as required" sounds flexible, but it can lead to arguments about what the person was actually hired to do. If the role changes, you may then struggle to show what was agreed.

Fix: Give a clear job title and a short description of the main duties. Add a sensible clause allowing reasonable changes, and agree bigger changes in writing.

3. Getting hours and pay unclear

Say what the hours are, whether they can vary, whether overtime is paid, and when pay is made. Gov.uk lists hours, days of work and pay frequency among the things the statement must cover.

Fix: State pay amount, frequency, normal hours and any overtime rules in plain words.

4. Mishandling holiday

Almost all workers are entitled to 5.6 weeks of paid leave a year, capped at 28 days (gov.uk). Employers do not have to give bank holidays on top, and may count them within the 28 days, but the contract should say which applies.

Fix: State the total holiday, whether bank holidays are included, and the holiday year dates.

5. Notice periods that do not add up

The law sets minimum notice that an employer must give. Gov.uk says it is at least one week for service from one month to under two years, one week per year of service from two to under twelve years, and twelve weeks from twelve years onward. A contract can give more, but not less.

Fix: Check your notice terms meet these minimums, and state notice for both sides clearly.

6. Skipping probation terms

If you intend a probation period, the contract should say how long it is and what conditions apply. Gov.uk lists probation length and conditions among required details. A probation clause does not remove an employee's legal rights, so do not treat it as a free pass.

Fix: State the length, how it will be reviewed, and any extension rules. Keep notes of reviews.

7. Ignoring changes to the law

Employment law is changing. The Employment Rights Act 2025 makes several reforms, including to unfair dismissal rules, and these are being phased in.

Fix: Review your contracts regularly. When you change terms, tell the employee in writing within one month, as gov.uk requires.

A quick checklist

• Contract and written statement ready before day one
• Clear job title and duties
• Pay, hours and overtime stated
• Holiday and bank holiday approach stated
• Notice periods meet legal minimums
• Probation terms clear
• Disciplinary and grievance information included, which gov.uk lists in the wider statement
• Signed and dated copies kept

Do I need a solicitor?

For a standard role, a well-structured template is a sensible starting point. If you are dealing with a senior hire, a dispute, redundancy, restrictive covenants or anything unusual, take legal advice.