HR & Workforce · Mandatory · Pre-Construction

Employee and Operative Contract

A written statement of employment particulars that must be provided to employees from day one.

Last reviewed: 29 March 2026 — This guide reflects UK law as of this date. Employment Rights Act 1996 remains current with no amendments enacted as of 29 March 2026. Next scheduled review: 29 March 2027.

Legal basis	Employment Rights Act 1996, s.1 — right to a written statement of employment particulars
Day 1 statement	A written statement of the principal terms must be provided on or before the first day of employment (since 6 April 2020)
Applies to	All employees and workers — including part-time, fixed-term, and zero-hours workers
NMW from April 2025	National Living Wage (21+): £12.21/hr — 18–20: £10.00/hr — Under 18: £7.55/hr
Employment Rights Bill 2024	Currently progressing through Parliament — expected to introduce day-one unfair dismissal rights, restrict zero-hours contracts, and strengthen worker protections

1. The Employment Contract

The employment contract is the foundation of the working relationship between an employer and an individual. Under section 1 of the Employment Rights Act 1996, every employee and worker is entitled to a written statement of employment particulars setting out the principal terms of their engagement. Since 6 April 2020, this statement must be provided on or before the individual's first day of employment — there is no longer a two-month grace period.

In the construction industry, the employment contract takes on additional complexity because of the range of engagement models used. Operatives may be directly employed under PAYE, engaged through an employment agency, or working as self-employed subcontractors under CIS. The correct classification of each individual is critical — misclassifying an employee as self-employed exposes the employer to HMRC tax assessments, penalties, and claims for employment rights including holiday pay, sick pay, and unfair dismissal.

The Employment Rights Bill 2024 is currently progressing through Parliament and is expected to bring significant changes to employment law. The Bill proposes to make unfair dismissal a day-one right (removing the current two-year qualifying period), restrict the use of zero-hours contracts, and strengthen protections for workers in insecure employment. Construction employers should monitor the Bill's progress and prepare for the changes, as they will affect contracts issued from the date of implementation.

Clarify employment status before issuing the contract

Before issuing a contract, confirm whether the individual is an employee, a worker, or genuinely self-employed. The distinction affects tax treatment, employment rights, pension auto-enrolment, and liability. HMRC's Check Employment Status for Tax (CEST) tool can help, but it is not definitive. If there is any doubt, take professional advice. Getting the status wrong can result in significant financial and legal consequences.

2. Required Content

The following particulars are required under section 1 of the Employment Rights Act 1996. Since 6 April 2020, the principal statement (covering most of these items) must be provided on or before the first day of employment. A wider written statement covering remaining items must follow within two months.

Particular	Detail
Employer details	Legal name and registered address of the employer
Employee details	Full name, address, and National Insurance number of the employee
Job title	Job title or a brief description of the work the employee is employed to do
Pay	Rate of pay, method of calculation (hourly, weekly, monthly), and pay intervals — must meet or exceed the National Minimum Wage (from April 2025: NLW 21+ £12.21/hr; 18–20 £10.00/hr; under 18 £7.55/hr)
Working hours	Normal hours of work, days of the week, and whether the hours or days may vary and, if so, how
Place of work	Place of work or, if the employee is required to work at various locations, a statement of that and the employer's address
Holiday entitlement	Holiday entitlement including public holidays and the holiday year — statutory minimum is 5.6 weeks (28 days for full-time)
Sick pay	Terms and conditions relating to incapacity for work due to sickness or injury, including any provision for sick pay above Statutory Sick Pay
Notice periods	Length of notice required to be given by employer and employee to terminate the contract
Pensions	Details of any pension scheme and whether a contracting-out certificate is in force — auto-enrolment duties apply to eligible workers
Disciplinary and dismissal	Disciplinary and dismissal procedures, or reference to a document that is reasonably accessible to the employee
Grievance	Grievance procedure, or reference to a document that is reasonably accessible to the employee
Probationary period	Duration of any probationary period and the conditions that apply during that period (required in the day-one statement since April 2020)
Applicable CBA	Any collective agreements that directly affect the terms and conditions of employment, including the identity of the parties to the agreement
Signatures	Signature of the employer (or authorised representative) and the employee, with date of signing

3. Common Mistakes

Issuing the written statement late

Since 6 April 2020, the principal statement of employment particulars must be provided on or before the individual's first day of employment. Issuing it days or weeks later is a breach of section 1 of the Employment Rights Act 1996. An employee who does not receive a compliant statement can bring a claim to an employment tribunal, which can award compensation of two or four weeks' pay. Late issuance also creates evidential difficulties if a dispute arises about the terms that were agreed.

Not updating the contract when terms change

Any change to the written particulars must be notified to the employee in writing within one month of the change. This includes changes to pay rates, working hours, place of work, job title, and any other term covered by the statement. Failing to update the contract creates a mismatch between the actual terms and the documented terms, which causes problems when disputes arise or when the employer needs to rely on a contractual provision such as a mobility clause or a notice period.

Labelling an employee as self-employed

Describing an individual as self-employed in the contract does not make them self-employed if the reality of the working relationship shows employment. HMRC and employment tribunals look at the substance of the arrangement, not the label. Key factors include control over how, when, and where the work is done; whether the individual must perform the work personally; and whether the individual bears financial risk. Misclassification exposes the employer to backdated PAYE, National Insurance contributions, penalties, and claims for employment rights.

Missing the 2020 additional particulars

The changes introduced on 6 April 2020 expanded the list of particulars that must be included in the day-one statement. These include details of the probationary period, training entitlements, and paid leave other than holidays and sick leave. Many employers updated their template contracts but missed one or more of the new requirements. A statement that does not include all required particulars is not compliant, even if it covers the original pre-2020 requirements.

4. Frequently Asked Questions

What is the difference between an employee, a worker, and a self-employed person?▾

An employee works under a contract of employment, is subject to the employer's control over how, when, and where the work is done, and must perform the work personally. Employees have the fullest range of employment rights, including unfair dismissal protection, redundancy pay, and the right to a written statement. A worker provides personal services under a contract but has more flexibility than an employee — workers are entitled to the National Minimum Wage, holiday pay, rest breaks, and protection from discrimination, but do not have unfair dismissal or redundancy rights. A self-employed person is in business on their own account, bears financial risk, can send a substitute, and controls how and when the work is done. Self-employed individuals have limited employment protections. In construction, HMRC scrutinises employment status closely, particularly through CIS and IR35.

What are my auto-enrolment pension obligations?▾

Every employer must automatically enrol eligible workers into a qualifying workplace pension scheme. An eligible worker is aged between 22 and state pension age and earns more than £10,000 per year (the earnings trigger). The minimum total contribution is 8% of qualifying earnings, of which the employer must contribute at least 3% and the worker contributes 5% (which can include tax relief). Non-eligible workers and entitled workers have the right to opt in. Auto-enrolment duties apply from the first day of employment. Construction employers with a mobile workforce and high staff turnover must have robust systems in place to assess and enrol workers promptly and to manage opt-out requests correctly.

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