How to write an employment agreement (4 easy steps)

1. Pick the right type of employment agreement template

There are lots of different types of employment / employees. For example, this could include:

• Fixed-term contracts vs casual / zero hours contracts;

• Part-time vs full time - find out more about these types of contracts here;

• Senior employee / director’s employment agreements; and

• Employment agreements for company founders.

For each of the employment types above, a different type of employment agreement template will be needed that has different terms that are adapted and suitable for that employee.

To find out more about the different types of employment agreements and which one you need, read this guide.

2. Include the legally required terms in your agreement between the company and employee

Employers are legally obliged to provide employees with minimum “written particulars of employment”. A standard employment agreement will cover the “written particulars of employment”.

In the absence of a written employment contract covering at least the minimum “written particulars of employment”, not only would the employer be in breach of certain UK legislation, but it also could make it much harder to manage the employee's expectations and to establish what the terms actually are/were in the case of any dispute. With that in mind, and to mitigate the impact of disputes with employees, employers must equip employees with a written employment agreement that defines in clear terms the nature of the relationship.

To find out more about “written particular of employment” and how to ensure your employment agreement complies with UK employment law, use this handy checklist.

3. Include all other relevant terms in your employment agreement too

The exact terms that need to be included in your employment agreement will depend on the seniority of the employee/worker, their status, and the type of contract.

While there is a long list of things to include in an employment agreement, from details of the role to obligations of the employer, it can help to start with a well-drafted employment agreement template to ensure you’re hitting all points. Docue’s employment agreement template is fully dynamic so that it will adapt to the employment role / type, and automatically include the relevant terms for that type of employee.

For the sake of completeness, here is a list of a few essentials clauses that are usually included in a standard employment agreement:

1. Parties’ details

2. Start date

3. Job title

4. Description of the role and the related duties

5. Termination notice period

6. Probationary period

7. Working hours

8. Work location

9. Salary

10. Benefits (e.g. pension, healthcare, company car etc.)

11. Expenses

12. Bonus/commission

13. Holiday/annual leave entitlement

14. Sick pay

15. Disciplinary and grievance procedures

16. Confidentiality

17. Intellectual property ownership

18. Post-termination restrictions (e.g. non-solicitation of clients, non-poaching of staff etc.)

19. Governing law and jurisdiction

Whilst the internet is full to the brim with employment agreement templates, not all of them hit the mark when it comes to providing your business with the foundations it really needs. At Docue we’re determined to ensure employers and employees alike get started on the best possible foot, which is why our employment agreement template is drafted and maintained by our lawyers. The employment agreement templates on the Docue platform currently include contracts for casual, junior, and senior employees (as well as contractors, directors and founders), and are structured to protect you and your employee/worker.

4. Know how to make changes to an employment agreement

There may come a time when you want to amend an employment agreement, e.g. to reflect changes that stem from a promotion or because someone moves to a part-time role. Whilst it can be done, there are a number of steps to follow beforehand.

It’s important to know that unless an employment agreement states that the employer is entitled to unilaterally change the terms of the contract, any changes must be agreed between the employer and the employee or worker. Even if the employment agreement states that changes can be unilaterally made by the employer, if the changes are substantial it is likely that they would still need to be agreed by the employee too.

In some circumstances, it will need to be done in agreement with a trade union or other employee representatives. Making amendments to employment agreements can be a particularly complex area.

Before amending an employment agreement it’s really important to factor in the risks. You could potentially damage working relations, run the risk of legal claims, increase team stress, or trigger a series of strikes. Take the time to consider whether this really makes sense for the business, and for your employees.

Final Thoughts

Employment agreements are an important part of growing your team and done right, they can equip your employee with the information needed to thrive. However, the absence of a well-drafted employment agreement can unearth a number of issues down the line, which is why it makes commercial sense to make the most of their benefits.

At Docue, we equip growing companies with lawyer-made employment agreement templates, so they can evolve their team with peace of mind.

Ready for your next hire? Let us make it easier with our lawyer-written employment agreement template.

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