Employment Contract Checker 2026/27

What Must Be in Your Employment Contract?

Under the Employment Rights Act 1996 (as amended), employers must provide a written statement of employment particulars on or before the first day of employment. This is often called a "Section 1 statement" or simply your employment contract. Certain terms are legally required as a minimum:

Your employer's name and your name
Start date and, if different, the date your continuous employment began
Rate of pay or how pay is calculated, and pay interval (weekly, monthly, etc.)
Hours of work, including any variation to normal hours
Holiday entitlement (statutory minimum is 5.6 weeks per year)
Sick leave and sick pay entitlement
Notice period required on both sides
Job title or a brief description of the work
Place of work
Whether a collective agreement affects your terms

Illegal Contract Clauses for Minimum Wage Workers

Some employers include clauses in contracts that are void (legally unenforceable) because they attempt to contract out of NMW obligations. Watch out for:

Any clause stating you "agree to work for less than minimum wage" — this is always void under the National Minimum Wage Act 1998
Deductions for equipment, uniforms, or tools that bring your effective pay below NMW — illegal even if you signed to agree to them
Clauses requiring you to pay back training costs in a way that reduces your pay below NMW in any pay period
Describing you as "self-employed" while controlling your hours, location and work method — may be sham self-employment
Unpaid trial shifts or working periods not counted as hours for NMW purposes — any time under employer direction counts

Zero Hours vs Guaranteed Hours Contracts

Understanding the difference between these contract types is important for knowing your rights regarding minimum wage and job security.

Zero Hours Contract

No guaranteed minimum hours
You must still be paid NMW for every hour worked
You can refuse shifts (unless your contract says otherwise)
You cannot be exclusively tied to one employer (exclusivity clauses are banned)
You still accrue holiday entitlement
Rights to payslips, pension auto-enrolment apply

Guaranteed Hours Contract

Employer guarantees a minimum number of hours
Pay for those hours must meet or exceed NMW
Greater income security and predictability
Potential liability if you cannot work guaranteed hours
Clearer basis for mortgage, credit applications
More straightforward NMW compliance checking

Contract Scenario Examples

Good Contract

Full-time retail worker

Hourly rate stated✓ £12.21

Hours specified✓ 40 hrs/wk

Holiday entitlement✓ 28 days

Notice period✓ 1 week

Score10/10

Problem Contract

Zero hours hospitality worker

Hourly rate stated✗ Not specified

Uniform deduction✗ £50/month

Holiday entitlement✗ Not mentioned

Exclusivity clause✗ Present

Score3/10

Sham Self-Employment

"Freelancer" working set shifts

Employment status✗ Misclassified

Set hours required✗ 40 hrs/wk

Holiday pay✗ None provided

Pays own tax✗ Required

Likely statusWorker/Employee

Did You Know?

Since April 2020, employers must provide a written statement of employment terms on or before your first day of work — not within two months as was previously required. If your employer has not given you a written contract, an employment tribunal can award up to four weeks' pay in compensation.

Tips for Reviewing Your Contract

Always get your contract in writing before you start — verbal agreements are harder to enforce
Check that your hourly rate meets the NMW for your age band — any clause paying less is automatically void
Watch for deductions (uniforms, tools, training) that could push your effective pay below minimum wage
Exclusivity clauses in zero hours contracts are banned — you cannot be prevented from working for another employer
If you're classified as "self-employed" but work set hours at a set location for one employer, you may actually be a worker entitled to NMW, holiday pay and pension

Frequently Asked Questions

Does my employer have to give me a written contract?

Yes. Since April 2020, employers must provide a written statement of employment particulars on or before your first day of work. This was changed from the previous rule requiring it within two months. If your employer has not provided written terms, you can raise a complaint with an employment tribunal, which can award up to four weeks' pay in compensation. ACAS can help you raise the issue informally first.

Can my contract allow my employer to pay me less than minimum wage?

No, never. Any contractual term that pays you less than the National Minimum Wage is void and unenforceable under the National Minimum Wage Act 1998. It does not matter that you signed the contract — the legal minimum overrides any agreed rate. Your employer remains liable for the difference between what you were paid and what you should have received, plus any penalties imposed by HMRC.

What should I do if my contract contradicts the law?

First, raise the issue with your employer in writing and keep a copy of your message. If they do not resolve it, you can contact ACAS for free advice (0300 123 1100) or visit citizensadvice.org.uk. You can also report the NMW underpayment to HMRC, who can investigate and enforce back pay. If you face unfair dismissal or detriment for raising these concerns, you may have whistleblower protections under the Employment Rights Act 1996.

Can I be sacked for querying my contract terms?

Dismissing or penalising you for asserting your right to the National Minimum Wage is automatically unfair under UK employment law — there is no qualifying period of service required. This means even if you have worked for less than two years (when standard unfair dismissal rights typically apply), you can still bring a claim if you are dismissed for querying your NMW entitlement. Document everything and seek advice from ACAS or a Citizens Advice Bureau immediately.

Where can I get free contract advice?

Several free services are available: ACAS (Advisory, Conciliation and Arbitration Service) offers free, impartial employment advice; Citizens Advice has local bureaux and an online advice tool; the GOV.UK website has detailed guidance on employment contracts and NMW rights; and law school free legal clinics (many universities offer these) can provide advice for simple contract queries. Trade union members should contact their union representative.

📄 Employment Contract NMW Checker

Contract Compliance Checklist

What Must Be in Your Employment Contract?

Illegal Contract Clauses for Minimum Wage Workers

Zero Hours vs Guaranteed Hours Contracts

Zero Hours Contract

Guaranteed Hours Contract

Contract Scenario Examples

Good Contract

Problem Contract

Sham Self-Employment

Did You Know?

Tips for Reviewing Your Contract

Frequently Asked Questions

Related Calculators

📄 Employment Contract NMW Checker

Contract Compliance Checklist

What Must Be in Your Employment Contract?

Illegal Contract Clauses for Minimum Wage Workers

Zero Hours vs Guaranteed Hours Contracts

Zero Hours Contract

Guaranteed Hours Contract

Contract Scenario Examples

Good Contract

Problem Contract

Sham Self-Employment

Did You Know?

Tips for Reviewing Your Contract

Frequently Asked Questions

Related Calculators

🚨 Report NMW Violation

💰 Minimum Wage Calculator

📈 Commission Pay Checker