A Complete Guide to UK Employment Contracts for Employers
1. Understanding the Different Types of UK Employment Contracts
Here’s something many business owners still don’t realise: providing a written employment contract is a legal day-one requirement.
Every employee or worker must receive written terms setting out their pay, hours, job title and key conditions on or before their first day — no exceptions and no “we’ll send it later” excuses.
Getting the contract right from day one protects you as an employer, gives clarity to your team, and avoids misunderstandings further down the line.
So, what type of employment contract should you be using?
Below is a breakdown of the main UK contract types, what they’re for, when to use them, and what to look out for — along with a link where you can access professionally written, legally compliant templates from Human Touch HR Solutions.
2.Permanent (Open-Ended) Contracts
What it is:
An ongoing contract with no fixed end date. Employment continues until either party gives notice.
Why it works:
Provides stability and consistency.
Offers full statutory rights, including redundancy pay and unfair dismissal protection after 2 years.
Ideal for long-term roles and business continuity.
Things to watch:
You must follow fair dismissal procedures and legally required notice periods — permanent contracts must be ended carefully and compliantly.
3. Fixed-Term Contracts
What it is:
A contract with a defined end date — often used for maternity cover, seasonal peaks or project-based work.
Why it works:
Great for temporary needs or one-off projects.
Provides flexibility without long-term commitment.
Employees receive the same rights as permanent staff (pro-rated).
Things to watch:
If someone remains on repeated fixed-term contracts for 4+ years, they may automatically gain permanent status, so monitor timelines.
4. Apprentice Contracts
What it is:
A contract combining paid work with structured training via an accredited apprenticeship programme.
Why it works:
Builds future talent internally.
Encourages loyalty and long-term development.
Apprentices receive dedicated training and mentoring.
Things to watch:
You must clearly outline training obligations and meet apprenticeship funding and supervision standards.
5.Contractor / Consultant Agreements
What it is:
Used for freelancers or self-employed specialists working under a business-to-business relationship rather than employment.
Why it works:
Maximum flexibility — you pay for deliverables, not hours.
No employer NICs, holiday pay or sick pay if structured correctly.
Ideal for consultancy, specialist projects or short-term expertise.
Things to watch:
Check IR35 rules carefully.
If HMRC deems the contractor to be acting like an employee, you could face backdated tax and NI liabilities.
A clear, well-written agreement protects you.
6.Zero-Hours (Casual) Contracts
What it is:
No guaranteed hours — shifts are offered as needed, and the worker chooses whether to accept them.
Why it works:
Ideal for fluctuating demand (retail, events, hospitality).
Provides flexibility for both sides.
Zero-hours workers still receive holiday pay and may qualify for Statutory Sick Pay.
Things to watch:
Avoid accidentally creating a pattern of regular hours, which could imply employment.
Be transparent and fair with scheduling and cancellations.
7.Why Use a Professional Contract Template?
DIY or borrowed templates can leave serious gaps.
Our professionally created contract templates at Human Touch HR Solutions are:
✔ 100% compliant with UK employment law
✔ Written in plain, accessible English
✔ Regularly updated
✔ Fully customisable to your business
Access Your Contract Templates Here
Whether you’re hiring your first employee or expanding your team, we have every major contract type ready to download:
Permanent Contract
Fixed-Term Contract
Apprentice Contract
Contractor / Consultant Agreement
Zero-Hours Contract
All written by real HR experts — led by Gill Etherington (MCIPD) — so you can hire confidently and stay compliant from day one.
8.Final Thought
Every working relationship needs clarity — and a contract is the foundation that provides it.
It protects you, sets expectations, and keeps your business compliant from day one.
If you’re unsure which contract type you need, get in touch and we’ll point you in the right direction within minutes.
📞 +44 7733 373517
📩 gill@humantouchhrsolutions.co.uk
