This Practice Note covers express terms, implied terms, imposed terms and incorporated terms that may make up an employment contract. It considers written or oral terms, terms implied for business efficacy or using the officious bystander test, by conduct, custom or as a characteristic term. It goes on to consider terms imposed by common law or statute, terms incorporated from other documents such as collective agreements and employee handbooks, entire contract or entire agreement clauses, no oral modification clauses, the distinctions between contractual conditions, warranties and innominate terms, negligence liability and variation of contract. The Unfair Contract Terms Act 1977 (UCTA 1977) is also covered. Although employers and employees have a number of rights given to them by statute, the basic relationship between them is still governed by the contents of the contract of employment. It is important to identify what the terms of that contract are. The law of contract is important to many areas of employment. It is used to decide the true contract between parties, which is often not as simple as it