A surprising number of small UK trade businesses still hire people without giving them a written contract.
Sometimes it is a handshake deal with a labourer. Sometimes it is a long-standing apprentice. Sometimes the employer just never got round to it.
The problem is that, since 6 April 2020, the law has changed. Every employee and worker in the UK must receive a written statement of employment particulars on or before their first day of work.
Missing this is not just bad practice. It is unlawful.
What Is a Section 1 Statement?
Under Section 1 of the Employment Rights Act 1996, employers must give workers a written statement covering specific minimum terms.
Many businesses combine this with a full employment contract. That is fine. You can use one document to do both, as long as it includes everything the law requires.
What Must Be Included?
The statement must include the following information on or before the first working day:
Basic Details
- Names of the employer and employee
- Start date of employment
- Start date of continuous employment, if different
Pay
- Rate of pay or method of calculating pay
- Pay intervals (weekly, monthly)
- Any benefits or allowances
Hours of Work
- Normal hours of work
- Any variable or flexible working arrangements
- Days of the week the worker is required to work
- Whether hours or days may be variable, and how
Holidays
- Holiday entitlement
- Public holiday arrangements
- How holiday pay is calculated
Place of Work
- Where the work will be carried out
- Whether the employee will be required to work in different locations
- If overseas work is required, the details of that
Job Details
- Job title or a brief description of the work
- Length of employment if fixed-term, and the end date
Probation
- Whether there is a probationary period
- Length and conditions of that period
Training
- Any training the employer requires the worker to complete
- Whether that training is paid for by the employer
Other Key Items
- Notice periods on both sides
- Sick pay arrangements
- Pensions information
- Disciplinary and grievance procedures (can be referred to in the handbook)
- Collective agreements that affect terms (where applicable)
What Counts as a Worker?
The 2020 changes extended the right to a written statement to workers, not just employees.
A worker includes:
- Casual workers
- Zero-hours workers
- Some agency staff
- Freelancers who are not genuinely self-employed
If you are unsure whether someone is a worker or genuinely self-employed, it is worth checking. Getting employment status wrong is a common HMRC and tribunal issue in the trades.
What Happens If You Do Not Provide One?
If an employee brings a separate successful tribunal claim, and the employer has failed to provide a written statement, the tribunal can award an additional two to four weeks of pay on top of the main award.
It is also a red flag for HMRC, ACAS and the Home Office if they ever look into how you run your business.
Tips for UK Trade Employers
Use a Template That Reflects the Trade
A generic office contract will not cover things like site allowances, tool allowances, CSCS card requirements, on-call work or call-out pay. Use a contract that is designed for construction and trades.
Get It Signed Before Day One
Walk through the contract with the new starter. Get both copies signed. Keep one on file and give them the other.
Review Annually
UK employment law changes regularly. Review your standard contract at least once a year and update it whenever the law or your business model changes.
Keep Records Securely
Contracts contain personal data. Store them securely and comply with UK GDPR. Do not leave them in unlocked filing cabinets in the site office.
Final Thoughts
A written contract protects both you and the employee. It sets clear expectations, reduces disputes and gives you a strong defence if a claim is ever brought.
It does not need to be long or complicated. A clear, well-drafted contract that covers the legal minimum and reflects how the job actually works is enough for the vast majority of small UK trade businesses.
