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Term Contract Employment for the United Kingdom

Term Contract Employment Template for England and Wales

A Term Contract Employment agreement is a legally binding document used in England and Wales that establishes a fixed-term employment relationship between an employer and employee. The agreement outlines specific terms including duration of employment, responsibilities, compensation, benefits, and termination conditions. It complies with UK employment law, including the Employment Rights Act 1996 and Fixed-term Employees Regulations 2002, providing protection for both parties while clearly defining the temporary nature of the engagement.

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What is a Term Contract Employment?

Term Contract Employment agreements are essential documents used when organizations need to hire employees for specific periods or projects. These contracts, governed by English and Welsh law, are commonly used for project-based roles, maternity cover, or seasonal work. The agreement includes crucial details about employment duration, duties, compensation, and termination provisions, ensuring compliance with UK employment legislation. Term Contract Employment documents are particularly valuable when the employment relationship has a defined end date or is linked to the completion of a specific project.

What sections should be included in a Term Contract Employment?

1. Parties: Identification of employer and employee with full legal names and addresses

2. Background: Context of employment relationship and basis for agreement

3. Definitions: Key terms used throughout the agreement

4. Term and Employment: Duration of contract and start date

5. Duties and Responsibilities: Role description and key responsibilities

6. Remuneration: Salary, payment frequency, and review process

7. Hours of Work: Working hours, overtime, and flexibility requirements

8. Holiday Entitlement: Annual leave and public holidays

9. Sickness and Other Leave: Sick pay, family-related leave and other absences

10. Pension and Benefits: Pension arrangements and additional benefits

11. Confidentiality: Protection of company confidential information

12. Data Protection: Employee data processing and privacy obligations

13. Termination: Notice periods and grounds for termination

14. Post-Termination Obligations: Ongoing obligations after employment ends

15. General Provisions: Miscellaneous legal and procedural provisions

What sections are optional to include in a Term Contract Employment?

1. Commission Structure: Details of commission payments and performance-based compensation for sales roles

2. International Travel: Travel requirements, compensation and arrangements for roles requiring regular travel

3. Stock Options: Share schemes, vesting schedules and equity compensation terms

4. Remote Working: Remote work policies, requirements and arrangements for hybrid or remote positions

5. Intellectual Property: IP rights and assignments for creative or technical roles

What schedules should be included in a Term Contract Employment?

1. Schedule 1 - Job Description: Detailed outline of role, responsibilities and reporting structure

2. Schedule 2 - Benefits Package: Comprehensive details of additional benefits and allowances

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

4. Schedule 4 - Restrictive Covenants: Non-compete, non-solicitation and confidentiality terms

5. Schedule 5 - Performance Metrics: KPIs and performance evaluation criteria

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 covering basic employment rights, mandatory employment particulars, unfair dismissal provisions, and notice periods

Equality Act 2010: Comprehensive legislation addressing protection against discrimination, equal pay provisions, and requirements for reasonable accommodations

Working Time Regulations 1998: Regulations governing working hours limits, rest breaks, annual leave entitlement, and record keeping requirements

National Minimum Wage Act 1998: Legislation establishing minimum wage requirements and payment calculations

Data Protection Act 2018 and UK GDPR: Legal framework for employee data handling and privacy rights protection

Health and Safety at Work Act 1974: Legislation setting out workplace safety obligations and requirements

Pensions Act 2008: Legislation covering pension auto-enrollment requirements for employers

Trade Union and Labour Relations (Consolidation) Act 1992: Act governing collective bargaining rights and industrial action provisions

Fixed-term Employees Regulations 2002: Regulations ensuring protection and fair treatment for fixed-term workers

Part-time Workers Regulations 2000: Legislation protecting the rights of part-time workers and ensuring equal treatment

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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