By Ergun Eren · 21 January 2026
Starting a new job is an exciting moment, but before you accept an offer or sign any paperwork, it is vital to understand what your employment contract really means. Your contract is more than a formality, it is a legally binding document that defines your rights, responsibilities, and entitlements while setting out what your employer expects in return. At Kreston Solicitors, our employment law specialists help both employees and employers review, negotiate, and clarify contracts to ensure that every agreement is fair, transparent, and legally compliant.
Understanding the Purpose of an Employment Contract
An employment contract sets the foundation for the working relationship between employer and employee. It outlines essential details such as job title, salary, working hours, holiday entitlement, and notice periods. However, beyond these visible terms, contracts often include clauses that can significantly affect your rights from probationary conditions to confidentiality, intellectual property, and post-employment restrictions. Understanding these details before you sign can prevent confusion or disputes later on.
Every employee in the UK is legally entitled to a written statement of employment particulars, which must be provided on or before the first day of work. This should summarise key terms, but many employers go further by offering a full contract. It is important to read the document carefully, as once signed, both parties are legally bound by its terms.
Key Clauses to Review Carefully
Probationary Periods
Most new roles include a probation period, typically lasting three to six months. During this time, notice periods are often shorter, and employment can be ended more easily by either party. Always confirm the duration and conditions of probation, as well as what happens if you successfully complete it.
Non-Compete and Restrictive Covenants
Some contracts include clauses preventing employees from working for competitors or contacting clients after leaving. While these can be valid, they must be reasonable in scope, duration, and geography to be enforceable. Our employment solicitors review these clauses carefully to ensure they do not unfairly limit your future career opportunities.
Confidentiality and Intellectual Property
Employers often include terms to protect business information and ownership of work created during employment. Understanding the boundaries of these clauses is important, particularly for professionals in creative, technical, or research-based industries.
Bonus and Commission Structures
If your role includes performance-related pay, the contract should clearly explain how bonuses or commissions are calculated and when they are paid. Vague wording can create disputes later, especially if targets or conditions are not specified.
Notice and Termination Clauses
Notice periods define how much warning either side must give to end the employment. Make sure these terms are balanced and comply with statutory minimums. Contracts should also specify the circumstances under which dismissal may occur, including gross misconduct or redundancy.
The Importance of Legal Review
Even simple contracts can contain complex terms with long-term consequences. Having your contract reviewed by a solicitor ensures that you fully understand your rights before committing. At Kreston Solicitors, we identify potential risks, explain obligations in plain language, and help negotiate amendments where necessary. This proactive step can prevent legal disputes and ensure you start your new job on a secure footing.
Employer Obligations and Employee Rights
Employers must ensure that all contractual terms comply with UK employment law, including the Employment Rights Act 1996, the Equality Act 2010, and current statutory regulations on pay, working hours, and health and safety. Employees are entitled to fair treatment, equal pay, and protection against discrimination from day one. If a contract appears to conflict with these rights, it should be reviewed before signing.
When to Seek Advice
If you are unsure about any clause, or if the contract includes terms that seem restrictive or unclear, legal advice should be sought immediately. It is always easier to negotiate adjustments before signing than to challenge unfair terms later.
At Kreston Solicitors, our employment lawyers assist clients with reviewing, negotiating, and enforcing contracts across all industries. We also advise on settlement agreements, redundancy packages, and workplace disputes, ensuring that every client’s interests are fully protected.
To arrange a confidential review of your employment contract or to speak with a solicitor about your workplace rights, visit our website and contact Kreston Solicitors for expert advice.
Kreston Solicitors is located in Enfield in London and serves the local communities of Barnet, Haringey, Waltham Forest, Potters Bar, Whetstone, North Finchley, Wood Green, Chingford, Woodford, Hertfordshire, Welwyn Hatfield, Broxbourne, Epping Forest district and Harlow.
Ergun Eren
Director / Licensed Conveyancer