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Business Setup & Legalintermediate

Employment Contract

Definition

A legally binding agreement between an employer and employee setting out the terms of their working relationship, including salary, hours, holiday, notice period, and duties.

Why it matters

Employees must receive a written statement of employment terms on day one. Failing to provide one leaves you legally exposed. A well-drafted contract protects both parties.

Example

Before her first employee starts, a founder issues a contract specifying: £28,000 salary, 9-5:30 hours, 28 days holiday, 1-month notice period, and a confidentiality clause.

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