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Permanent Contract for the United Kingdom

Permanent Contract Template for England and Wales

A Permanent Contract is a legally binding employment agreement governed by the laws of England and Wales, establishing an ongoing employment relationship between an employer and employee. The contract outlines essential terms and conditions including salary, benefits, working hours, holiday entitlement, and notice periods, while ensuring compliance with UK employment legislation such as the Employment Rights Act 1996 and Equality Act 2010.

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Permanent Contract

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What is a Permanent Contract?

Permanent Contracts are fundamental employment documents used to establish long-term employment relationships in England and Wales. This document is essential when hiring full-time or part-time employees on an indefinite basis, providing security for both parties. The contract ensures compliance with UK employment law while clearly defining the rights, responsibilities, and obligations of both employer and employee. It includes mandatory elements required by the Employment Rights Act 1996 and addresses key aspects such as compensation, working conditions, and termination provisions.

What sections should be included in a Permanent Contract?

1. Parties: Details of employer and employee

2. Background: Brief context of employment relationship

3. Definitions: Key terms used throughout the contract

4. Position and Duties: Job title, responsibilities, and reporting lines

5. Commencement and Duration: Start date and nature of permanent contract

6. Remuneration and Benefits: Salary, payment intervals, benefits package

7. Hours of Work: Standard working hours, overtime provisions

8. Holiday Entitlement: Annual leave allocation and rules

9. Sickness and Absence: Sick pay and absence reporting procedures

10. Notice Period: Notice requirements for termination

11. Confidentiality: Protection of company information

12. Data Protection: GDPR compliance and data handling

What sections are optional to include in a Permanent Contract?

1. Restrictive Covenants: Non-compete and non-solicitation clauses for senior positions or roles with access to sensitive information

2. Commission Structure: Details of commission-based compensation for sales roles or performance-based positions

3. International Travel: Travel requirements and allowances for roles requiring regular travel

4. Intellectual Property: Ownership of work created during employment, typically for creative or technical roles

What schedules should be included in a Permanent Contract?

1. Schedule 1 - Job Description: Detailed outline of role responsibilities

2. Schedule 2 - Benefits Package: Detailed description of benefits offered

3. Schedule 3 - Company Policies: Key workplace policies referenced in contract

4. Schedule 4 - Bonus Scheme: Details of any applicable bonus arrangements

5. Schedule 5 - IT and Communications Policy: Rules regarding use of company systems

Authors

Alex Denne

Head of Growth (Open Source Law) @ Ƶ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Jurisdiction

England and Wales

Publisher

Ƶ

Document Type

Employment Contract

Cost

Free to use
Relevant legal definitions

























Clauses



























Industries

Employment Rights Act 1996: Primary legislation governing employment rights in England and Wales, including requirements for written statement of terms, unfair dismissal, redundancy rights, and other fundamental employment protections

Equality Act 2010: Comprehensive anti-discrimination legislation protecting employees from discrimination based on protected characteristics including age, gender, race, disability, religion, and sexual orientation

Working Time Regulations 1998: Regulations governing maximum working hours, rest breaks, annual leave entitlement, and working patterns

National Minimum Wage Act 1998: Legislation ensuring workers receive at least the statutory minimum wage rates, which vary by age and apprenticeship status

Pensions Act 2008: Legislation requiring employers to automatically enroll eligible workers into a pension scheme and make minimum contributions

Data Protection Act 2018: UK's implementation of data protection requirements, including UK GDPR, governing how employers must handle employee personal data

Health and Safety at Work Act 1974: Framework for workplace health and safety regulations, establishing employer duties to ensure worker safety

Employment Relations Act 1999: Legislation covering trade union recognition, collective bargaining, and other aspects of employment relations

TUPE Regulations 2006: Regulations protecting employees' rights when a business transfers to new ownership or during service provision changes

Part-time Workers Regulations 2000: Legislation ensuring part-time workers are not treated less favorably than comparable full-time workers

Statement of Main Terms: Mandatory written statement of employment particulars required under Section 1 of ERA, including key terms and conditions

Notice Periods: Statutory minimum notice periods for termination of employment, which may be enhanced by contractual terms

Working Hours and Holiday: Statutory requirements for maximum working hours, rest breaks, and minimum paid annual leave entitlement

Disciplinary Procedures: Required procedures for handling workplace discipline and grievances, following ACAS Code of Practice

Confidentiality and Data Protection: Provisions protecting company confidential information and ensuring compliance with data protection legislation

Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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