HR & Employment Law

Do you actually need written employment contracts?

Last reviewed: August 2026

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:

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.

Worth knowing: a written statement and a full employment contract aren't quite the same thing - the statement covers the legal minimum, but a proper contract can (and should) go further, covering things like confidentiality, IP ownership, and post-termination restrictions where relevant.

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.

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