Most people spend more time reading a phone contract than an employment contract. Yet your employment contract determines your notice period, your non-compete restrictions, your bonus entitlement and your ability to move to a competitor. This guide walks through the key clauses in plain English — what is standard, what is unusual, and what is worth pushing back on.
1. Salary and Pay Review
Your salary should be stated as an annual gross figure. Check that it matches the offer letter. Also check whether pay reviews are annual or entirely at the employer's discretion — "the company may review salary from time to time" gives the employer no obligation to ever increase your pay.
2. Bonus
There are two types of bonus in UK employment contracts — contractual (you have a legal right to it if criteria are met) and discretionary (the employer can pay zero regardless of performance). Most UK contracts describe bonuses as "wholly discretionary" — this is legal but means your bonus is never guaranteed. If a significant bonus was discussed at interview, ask for minimum threshold criteria to be written in.
3. Notice Period
The statutory minimum notice in the UK under the Employment Rights Act 1996 is 1 week after 1 month of service, rising by 1 week per year of service to a maximum of 12 weeks. Most professional contracts offer more. The market standard for finance roles at manager level is 1-3 months on both sides.
4. Probation Period
Standard probation in the UK is 3-6 months. A 12-month probation period is above market standard. During probation, either party can typically terminate with shorter notice (often 1 week). Since April 2024, employees have the right to request flexible working from day one, including during probation.
5. Place of Work and Hybrid Working
If hybrid working is important to you, get it written into the contract before signing — not just agreed verbally. A contract specifying 5 days in office with no hybrid clause gives you no contractual entitlement to work from home, even if your team informally does so. The market standard in UK finance is now 2-3 days in office per week.
6. Non-Compete and Restrictive Covenants
Non-compete clauses restrict your ability to work for a competitor after leaving. UK courts apply a strict reasonableness test — clauses covering broad sectors ("all of financial services") or long periods (18-24 months) are increasingly difficult to enforce. A restriction limited to named direct competitors for 6-12 months is more reasonable and more enforceable.
7. Annual Leave
The statutory minimum in the UK is 28 days including bank holidays (5.6 weeks). The market standard for finance professionals in the UK is 25 days plus bank holidays (33 days total). Annual leave below 25 days (excluding bank holidays) is below market standard for most professional roles.
8. Pension
UK employers must auto-enrol eligible workers into a pension with a minimum 3% employer contribution. The market standard in UK financial services is 5-7% employer contribution. If your contract offers only 3%, this is at the statutory minimum and worth negotiating before signing.
9. Intellectual Property
IP clauses assign ownership of work created in the course of your employment to the employer — this is standard. Watch for clauses that assign IP for work created outside working hours using your own equipment and unrelated to your employment — these are unusual and potentially overreaching.