Short answer: yes, and it's not optional. If you've been running on a handshake and a verbal agreement, this is worth reading properly.
The legal requirement
Since 6 April 2020, every employee and worker is entitled to a written statement of their main employment terms from their very first day of employment - not within two months of starting, which was the old rule. This is a day-one right, and it applies regardless of how small your business is or how casual the working relationship feels.
What actually has to be in it
The written statement (often called a "Section 1 statement," after the section of the Employment Rights Act that requires it) needs to cover:
- Names of employer and employee, start date, and whether previous employment counts towards continuous service
- Job title or a brief description of the role
- Pay - amount, and how often (weekly, monthly)
- Hours of work, including whether they vary and how
- Holiday entitlement, including whether it includes public holidays
- Place of work, or if there isn't one fixed location, that the role is variable
- Sick pay and procedures
- Other paid leave entitlements (maternity, paternity, etc.)
- Notice periods on both sides
- Details of any probationary period
- Any training the employer requires and whether the employee has to pay for it
What happens if you don't provide one
If a dispute ends up at an employment tribunal for another reason (unfair dismissal, discrimination, etc.) and it turns out you never provided a written statement, a tribunal can award an additional two to four weeks' pay on top of whatever else you owe - purely as a penalty for not complying with this requirement. It's a real, avoidable cost stacked on top of whatever the actual dispute was about.
Why it's worth doing properly, not just legally
Beyond the legal minimum, a well-written contract is genuinely useful protection for you. Clear probation terms, clear notice periods, and clear expectations around things like confidentiality or working for competitors are far easier to enforce if they were written down and agreed to on day one, rather than argued about after something's already gone wrong.
This is general guidance, not advice tailored to your specific situation. Employment law is genuinely fact-specific - if you want to talk through what this actually means for your business, get in touch.