UK Employment Contracts Explained: Your Rights in Plain English

Starting a new job is exciting. Parsing a 20-page employment contract less so. Here’s what the most important clauses actually mean — and when you should push back.

Notice periods

The law sets minimums, and your contract can ask for longer. If you’ve worked for an employer for more than a month, you must give at least one week’s notice. Your employer must give you at least one week if you’ve worked there from one month to two years, then one week for each full year of service, up to 12 weeks. Check whether the notice in your contract is the same in both directions. Employers often ask for more notice from you than they give you.

Restrictive covenants

Post-employment restrictions preventing you from joining competitors or poaching clients are only enforceable if reasonable in scope, geography, and duration. A 2-year global non-compete is almost certainly unenforceable in England.

What to say: “I’d like to limit the non-compete to 6 months and define restricted activities to reflect my actual role.”

Garden leave

Being paid to stay away during your notice period sounds good but prevents you from starting a new role. Some contracts let employers impose this at their discretion for months.

IP and invention clauses

Some contracts claim ownership of anything you create even in your own time. If you have side projects or freelance work, list them explicitly in the contract as excluded from IP assignment before signing.

Probationary periods

During probation you can usually be dismissed with minimal notice. Check how long it is, whether it can be extended, and that full employment rights apply after it ends. From 1 January 2027, you’ll be able to claim unfair dismissal after six months’ service instead of two years, which matters when a probation period is that long.

Bonus clauses

Discretionary bonuses are exactly that — discretionary. If a bonus is part of your expected compensation, try to get the criteria set out in writing.