Employment contract

The contract of employment is a document which sets out the rights and obligations of both parties. As a result, the contents and the construction of the contract are of primary importance in determining the extent of the obligations each party has and in deciding when one party is acting outside the scope of the employment contract and is, therefore, in breach.

This subtopic provides guidance to employers and employees on all aspects of the employment contract.

Key precedents

Key precedents include:

  1. Employment contract basic version

  2. Employment contract for senior employee

  3. Executive service agreement

  4. Executive service agreement (short form)

  5. Employment contract basic version (Scotland)

  6. Employment contract for senior employee (Scotland)

  7. Executive service agreement (Scotland)

  8. Executive service agreement (short form, Scotland)

Types of contractual term

Contracts of employment set out the relationship between an employer and employee. They are made up of various different types of terms.

Practice Note: Types of contractual term in employment covers express terms, implied terms, imposed terms and incorporated terms that may make up an employment contract. It explains

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Latest Employment News

PAC criticises Home Office over failures to tackle exploitation under skilled worker visa route

The Public Accounts Committee (PAC) has found that the Home Office failed to adequately address the risk of exploitation and non-compliance under the skilled worker visa scheme, particularly in the care sector. In its 4 July 2025 report, the PAC criticises the department for failing to prevent abuse following the scheme’s 2022 expansion to support adult social care, highlighting serious weaknesses in safeguarding, compliance monitoring, and tracking of visa expiries. While the expansion helped alleviate workforce shortages during the pandemic, it also exposed migrant workers to exploitation, with evidence submitted to the inquiry detailing cases of debt bondage, excessive working hours and poor living conditions. Despite early signs of abuse, the Home Office was slow to respond and does not hold data on how many visa holders have been identified as potential victims of modern slavery. The PAC further found that the department lacks key data on visa compliance, including whether workers leave the UK at the end of their stay, are re-sponsored, or remain unlawfully, and has not analysed exit check data since the route’s introduction. In light of the recent decision to end overseas recruitment for care workers, the PAC warns of further risks unless cross-government workforce strategies are coordinated and calls for a joined-up approach to tackling exploitation and addressing domestic skills shortages.

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