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Frequently Asked Questions

UK: Do I need my UK employees to sign a formal offer letter?

Yes, you should provide each UK employee with an employment contract which sets out the terms and conditions of employment at the start of the employment relationship. Most of the terms and conditions of employment must be given in a single document by day one of employment, but some can be contained in a reasonably accessible separate document and others can be given in instalments within two months. The following particulars must be given in a single document by day one:

  • name of the employer and employee;
  • date the employment began;
  • date the employee’s period of continuous employment began;
  • rate of remuneration;
  • intervals at which remuneration is paid (weekly, monthly etc);
  • hours of work;
  • entitlement to holidays and holiday pay;
  • any other contractual benefits;
  • any non-contractual benefits;
  • length of notice required to terminate the contract;
  • job title or a brief description of the work;
  • place of work and address of employer;
  • probationary period details (conditions and duration);
  • arrangements if required to work outside the UK for one month or more;
  • any training entitlement that the employee is required to complete;
  • any other required training where the employer will not bear the cost.

The following particulars can be given in a single document or a reasonably accessible separate one (such as a staff handbook):

  • sickness terms including sick pay;
  • other paid leave (e.g. maternity leave, paternity leave);
  • disciplinary rules and procedure; 
  • details of pensions and pension schemes; 
  • any training entitlement; 
  • any collective agreements which directly affect the terms and conditions of employment;
  • how and with whom to raise a grievance;
  • person to whom employee can appeal any disciplinary decision.

In practice, most employers provide the above information in one document (e.g., the employment contract) and provide it to the employee on or before the start date. We would also strongly recommend building additional protection into the employment contract by way of confidentiality and intellectual property provisions and restrictive covenants.

Ensure you retain properly signed copies of each employee’s employment contract. 

Learn More: UK Founder Series: Building Your Team

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