You've just received a job offer. Fifteen pages land in your inbox. Your new employer wants it signed by Friday. Before you do, here's exactly what to look for, and what could cost you if you miss it.

A thorough employment contract review in the UK covers your pay and bonus terms, working hours, notice period, restrictive covenants, sick pay rights (which changed in April 2026), and anything the contract incorporates by reference but doesn't actually attach. Most people sign without reading the parts that matter most.

Key Takeaways

• UK employers must provide a written statement of employment particulars on day one, this is a legal right, not a courtesy

• From 6 April 2026, paternity leave and unpaid parental leave are day-one rights under the Employment Rights Act 2025

• Statutory sick pay now has no three-day waiting period and no lower earnings limit, check whether your contract matches or exceeds this

• "Discretionary" bonuses can be withheld even if you've earned them, the wording matters enormously

• A 12-month UK-wide non-compete on a junior role is very likely unenforceable, but you still need to know it's there

• Contracts often bind you to policies and handbooks you've never seen, the incorporated-by-reference clause is one most people skip entirely

• An employment solicitor costs £200 to £500 per hour; Ookulli reviews your first contract free, then £10 per document, applying UK law specifically

What an employment contract must include under UK law

UK law requires your employer to give you a written statement of employment particulars on or before your first day. This is a legal minimum under the Employment Rights Act 1996, and the Employment Rights Act 2025 has since extended the protections that attach to it.

The written statement must include your job title, start date, pay rate and frequency, working hours, holiday entitlement, notice period on both sides, sick pay arrangements, and details of any probationary period. If your employer sends you a contract that omits any of these, that is not a paperwork oversight, it is a statutory breach.

The ERA 2025 introduced new day-one rights that became active from 6 April 2026. Paternity leave and unpaid parental leave no longer require a qualifying period of employment. If your contract says you must wait 26 weeks for these rights, the contractual term is weaker than statute, but you need to know it says that, because it may affect how your employer applies these entitlements in practice.

The Acas ERA 2025 overview and the GOV.UK employment rights update both summarise which changes are already live and which (fire-and-rehire protections, collective redundancy reforms) take effect from January 2027 onwards.

The clauses that matter most, and what to look for in each

Job title and duties

Read the duties section carefully. A vague or overly broad duties clause, "and any other duties as reasonably required by the business", gives your employer significant latitude to change your role over time without triggering a formal variation of contract. That is not always a problem, but you should know it is there.

Salary, pay frequency, and the bonus trap

Confirm the gross salary, pay frequency (monthly is standard in the UK; weekly is common in some sectors), and whether there is a pay review process. Then read every word about bonuses.

There are two types of bonus clause and the difference is significant. A contractual bonus means you are entitled to it if you meet the stated criteria, your employer cannot simply decide not to pay. A discretionary bonus can be withheld at the employer's absolute discretion, even if you have hit every target. Many contracts contain a further trap: a clause stating that you must be employed on the bonus payment date to receive it. If you resign in March and the bonus pays in April, you get nothing, regardless of the year's performance. These clauses are common, routinely missed, and very difficult to challenge once you have signed.

Working hours and flexible working

Note your contracted hours and whether overtime is paid or expected on a voluntary basis. If you are going to work remotely or request flexible arrangements, check whether the contract specifies a place of work or restricts remote working. Under the ERA 2025, the right to request flexible working has strengthened, but your starting position is whatever the contract says. Read more about how to use your day-one right to request remote work before you sign.

Holiday entitlement

The statutory minimum in the UK is 5.6 weeks per year, 28 days for a full-time worker. Check what your contract offers and how it defines the holiday year, because carry-over rules depend on this. Some contracts restrict when you can take leave or require manager approval within narrow windows. None of this is unlawful, but it can affect you materially if the timing of holidays matters to your life.

Sick pay, what's changed under the Employment Rights Act 2025

Before April 2026, statutory sick pay required three waiting days (no pay for the first three days of illness) and a lower earnings limit. Both of those conditions have been removed. SSP now applies from day one of illness with no minimum earnings threshold.

Check your contract against this: if it refers to the old three-day waiting period, or states that SSP only applies if you earn above the lower earnings limit, those terms are no longer accurate. Many standard contracts have not been updated. Your entitlement is the better of the contractual sick pay and the statutory minimum, but in practice, an outdated clause causes confusion and disputes.

Flexible working from day one

Alongside the flexible working right, the ERA 2025 introduced a strengthened framework for how employers must handle requests. If your contract contains an older flexible working policy that limits requests to once per year or imposes a 26-week qualifying wait, check whether that conflicts with the updated statutory position. Read Ookulli's guide to flexible working rights from day one for a clause-by-clause breakdown.

Probationary period

Most contracts include a probationary period of three to six months. During this time, notice periods are often shorter (sometimes one week) and some contractual benefits may not apply. Check whether your contract specifies what happens at the end of probation, automatic confirmation, or a review that could extend it. Under the ERA 2025, unfair dismissal protection will apply after six months of employment from 1 January 2027, the originally proposed day-one right was dropped before the Act became law; until then, during a standard probationary period you have limited recourse if dismissed.

Notice period and PILON / garden leave

Notice is one of the most negotiable parts of a contract, yet most people accept whatever number is offered. The statutory minimum is one week after one month of service, rising by one week per complete year up to a maximum of 12 weeks. Most professional contracts offer more. A longer notice period protects you (income security if you are dismissed) but also constrains you (you cannot start a new role until your notice expires unless your employer agrees otherwise).

Check for payment in lieu of notice (PILON) and garden leave clauses. PILON allows your employer to end your employment immediately and pay out your notice in cash rather than requiring you to work it. Garden leave means you are still employed during the notice period, cannot work elsewhere, but are kept away from the office. Both clauses are standard in senior roles but appear increasingly in mid-level contracts. If you might want to move quickly to a competitor, these clauses matter.

Restrictive covenants (non-compete, non-solicit, non-dealing)

This is the section most people skip and most regret later.

Non-compete clauses restrict you from working for a competitor after you leave. Non-solicit clauses prevent you from approaching former colleagues to join you at a new employer. Non-dealing clauses stop you from working with former clients, even if they approach you. UK courts only enforce these if they are reasonable in scope, duration, and geography. A 12-month UK-wide non-compete for a junior role is very likely unenforceable, UK courts apply a stricter proportionality test than US courts, which matters if you have been using ChatGPT for legal advice and it has given you US-law framing.

Even an unenforceable clause can cause practical problems. A former employer threatening legal action, even without strong grounds, can deter a new employer from completing your hire. Know what the clause says before you sign, not after you resign.

Typical duration for enforceable restrictive covenants is 3 to 12 months; anything longer for non-senior roles warrants pushback.

Intellectual property

Most employment contracts include a clause assigning intellectual property created during your employment to the employer. This is standard and broadly lawful. The issue arises when the clause is drafted broadly enough to cover work done outside working hours, on personal devices, or in a field adjacent to but separate from your employment. If you run a side project, freelance in your own time, or have creative work you want to protect, read this clause carefully.

Confidentiality

Confidentiality obligations often extend beyond employment, check whether yours does and for how long. Broad post-termination confidentiality clauses are common in technology and financial services roles. They rarely prevent you from discussing general industry knowledge, but they can complicate future employment if interpreted broadly.

The incorporated-by-reference trap

This is the clause most workers miss entirely. Somewhere in your contract, often at the end, in a section titled "Policies" or "Collective Agreements", there will be a line that says something like: "Your employment is also governed by the Company's Employee Handbook, Bonus Scheme, and any policies in force from time to time."

Those documents are contractually binding even if you have never seen them. They can contain working hours rules, disciplinary procedures, bonus conditions, expenses policies, and data handling requirements. Ask for copies of every document incorporated by reference before you sign. Citizens Advice has a clear explanation of how incorporated terms work in practice.

When Priya accepted a senior marketing role at a financial services firm in early 2025, her contract referred to a bonus scheme document she was told would be shared after onboarding. She signed. When the bonus came around, the document contained a clause requiring continuous employment for 18 months before any payment. The contract was silent on this. The handbook was not. She had no recourse because she had agreed to be bound by it.

What the Employment Rights Act 2025 means for your contract right now

The Employment Rights Act 2025 became law on 18 December 2025. Not all provisions are in force yet, but several are already live and affect what your contract should say.

From 6 April 2026 (already active):

• Paternity leave is a day-one right, no 26-week qualifying period

• Unpaid parental leave is a day-one right

• SSP applies from the first day of illness, with no lower earnings limit threshold

From January 2027 (upcoming):

• Fire-and-rehire (dismissing workers in order to re-engage them on worse terms) becomes automatically unfair dismissal in most cases. This does not change your individual contract but signals a wider shift in enforcement.

The Fair Work Agency launched in April 2026 as a new enforcement body covering holiday pay, minimum wage, and statutory sick pay. This is relevant if your employer has historically been lax on these entitlements.

If your contract was drafted before December 2025 and has not been updated, some of its terms may already conflict with statute. The GOV.UK business employment changes summary sets out which rules are live. Statute overrides contract in your favour, but a conflict still creates administrative friction, and some employers will rely on the contractual wording unless challenged.

Can you negotiate? (Yes, here's which clauses employers expect pushback on)

Most people accept the contract as presented because they assume it is non-negotiable. In most professional roles, that assumption is wrong. Employers routinely accept pushback on:

Notice period: If you are being asked to work three months' notice but want six for security, or vice versa, this is the most commonly negotiated term. Ask.

Non-compete scope and duration: A clause covering a 50-mile radius or a 12-month restriction for a junior role is often reduced simply by asking. Employers who receive pushback on an overly broad clause know the clause is probably unenforceable anyway.

Bonus conditions: If the contract makes a bonus fully discretionary when you were told in offer discussions it would be performance-linked, ask for this to be reflected contractually. Verbal assurances are worth nothing.

Garden leave or PILON: If you anticipate needing to move quickly between roles, negotiate to limit the employer's ability to enforce garden leave, or confirm PILON will apply.

IP outside working hours: If you have side projects, ask for a carve-out. Many employers will agree to add a clause excluding work done on personal time and unconnected to the employer's business.

The negotiation window is between offer acceptance and contract signature. Once you sign, these terms are locked. Most employers expect at least some questions, a candidate who reads carefully signals professionalism, not difficulty.

Should you use a solicitor, ChatGPT, or an AI contract review tool?

This depends on what you are trying to get from the review.

A traditional employment solicitor gives you qualified legal advice, can write letters on your behalf, and can represent you if a dispute arises. The cost is £200 to £500 per hour for a good employment solicitor. For a complex senior role with significant restrictive covenants or equity, this is money well spent. For a standard 15-page employment contract, the cost is disproportionate to the risk for most workers.

ChatGPT, Claude, and other general AI tools will generate a summary of your contract and flag some issues. The problem is jurisdiction. UK employment law is specific: SSP thresholds, ERA 2025 rights, the proportionality test for restrictive covenants, and PILON tax treatment are all different from US equivalents. General AI tools default to US legal frameworks unless explicitly prompted otherwise, and even then lack certainty about UK-specific provisions. There is also a serious data privacy issue with uploading real contracts to ChatGPT, your contract contains your National Insurance number, salary, address, and employer details.

For a fuller explanation of why this matters, read why generic AI gets contract review wrong, including how jurisdiction errors in AI-generated legal summaries can leave you exposed to clauses you think you've challenged but haven't.

For a practical comparison of what each option actually covers, read using AI to review contracts before you decide.

A UK-specific AI contract review tool sits between these options. Ookulli reviews employment contracts against UK law specifically, Employment Rights Act 1996 and 2025, Working Time Regulations, GDPR, and flags clauses with source citations so you can see exactly which provision each flag references. It is not legal advice and it does not replace a solicitor for contentious situations. For the majority of workers who simply want to understand what they are signing before Friday's deadline, it covers the material at a fraction of the cost of an hourly rate. Your first contract review is free, then £10 per document, with a 30-day money-back guarantee. See Ookulli's pricing.

FAQ

What should I check in my employment contract before signing in the UK?

Check your job title and duties scope, salary and bonus terms (including whether the bonus is contractual or discretionary), working hours and place of work, holiday entitlement (minimum 28 days for full-time), notice period on both sides, probationary period conditions, sick pay terms against the post-April 2026 SSP rules, restrictive covenants (non-compete, non-solicit, non-dealing), intellectual property assignment, confidentiality obligations, and any documents incorporated by reference.

Can I negotiate my employment contract after receiving an offer?

Yes. The period between offer acceptance and signature is your negotiation window. Notice periods, non-compete scope, bonus terms, and IP carve-outs for side projects are all commonly negotiated. Most employers expect some questions; a candidate who engages with the detail is rarely penalised for it.

What are the most common red flags in a UK employment contract?

The most significant red flags are: a fully discretionary bonus with a payment-date employment requirement; a non-compete clause broader than 6 to 12 months or covering the whole UK for a non-senior role; an IP assignment clause covering work done outside working hours; no PILON clause (leaving you liable to work out a long notice period); outdated SSP terms that still reference the old three-day waiting period; and any reference to incorporated policies you have not been given.

Is a non-compete clause in a UK employment contract enforceable?

UK courts enforce non-compete clauses only if they are reasonable in scope, duration, and geography and protect a legitimate business interest. A 12-month UK-wide restriction on a junior employee is likely unenforceable. Even so, an unenforceable clause can cause practical problems if a new employer is threatened with litigation before your start date. Know what yours says before you sign.

Do I need a solicitor to review my employment contract?

Not always. For a senior role with equity, complex restrictive covenants, or a significant dispute risk, an employment solicitor at £200 to £500 per hour is appropriate. For most standard employment contracts, a UK-specific AI tool like Ookulli gives you the clause-by-clause analysis you need to understand what you are signing and identify anything worth querying or negotiating.

What has changed in employment contracts under the Employment Rights Act 2025?

From 6 April 2026, paternity leave and unpaid parental leave are day-one rights with no qualifying period. Statutory sick pay applies from the first day of illness with no lower earnings limit. Fire-and-rehire protections become active from January 2027. Contracts drafted before these changes may contain outdated terms, statute overrides contract in your favour, but you need to know the discrepancy exists.

Before you sign

Most employment contracts are signed too quickly, under time pressure, by people who feel it would be awkward to ask questions. The result is that workers spend years bound by non-competes they never properly read, miss bonus payments because of clauses they didn't notice, and lose side-project rights because the IP section was four paragraphs they skimmed.

You have the right to take reasonable time to review. You have the right to ask questions. And for most standard UK employment contracts, you do not need a solicitor and a four-figure bill to understand what you are agreeing to.

Review your employment contract with Ookulli, UK law, plain language, first contract free, then £10 per document.

This article is for informational purposes only and does not constitute legal advice. For advice on your specific situation, consult a qualified solicitor.