Not all employment contracts are created equal. These 10 clauses are commonly misunderstood, frequently overreaching, and sometimes unenforceable — here's what to look for.
You've been offered the job. You're excited. The contract arrives as a PDF and you're told to sign and return it by Friday.
Most people skim it, sign, and move on. Most people also have no idea what they've agreed to until something goes wrong.
Here are ten clauses that appear regularly in UK employment contracts and deserve careful thought before you put your name on the dotted line.
A non-compete clause restricts you from working for a competitor — or starting a competing business — after you leave. They're common. They're also frequently unenforceable.
Under English law, a restrictive covenant is only enforceable if it:
Six months in your specific sector and region? Possibly enforceable. Two years across the entire industry? Almost certainly not.
What to do: Ask for the clause to be narrowed. A solicitor can advise on enforceability for your specific role. Don't assume it's unenforceable — but also don't assume it will be enforced.
Watch for language like: "The company reserves the right to vary the terms of this agreement at its discretion."
Under UK employment law, your employer cannot unilaterally change the fundamental terms of your contract without your agreement — doing so is a potential breach of contract and may entitle you to resign and claim constructive dismissal.
However, a broad variation clause can complicate this, particularly for non-fundamental terms. The more specific the clause (e.g. "working hours may be varied with 4 weeks' notice"), the clearer the limits.
What to look for: Any clause giving the employer open-ended rights to change pay, location, role, or hours without your consent.
Notice periods work both ways — they protect you (income during your job search) but also constrain you (you can't start a new role immediately).
Long notice periods are sometimes used strategically to make you unattractive to competitors. Combined with garden leave provisions, a six or twelve month notice period can effectively lock you out of your industry for that period.
What to check: Is the notice period mutual? Does the employer have to give you the same notice as you're required to give them? And does the contract include garden leave provisions — meaning they can instruct you to stay away from work (and other employers) while still paying you?
Garden leave allows your employer to instruct you not to come into work during your notice period — while still paying your salary. This sounds generous, but the purpose is usually to prevent you from working for a competitor.
During garden leave:
A three-month notice period plus a six-month non-compete could mean nine months before you can work in your field.
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Most employment contracts include a clause assigning intellectual property created "in the course of employment" to the employer. This is standard and largely required under the Patents Act 1977 and Copyright, Designs and Patents Act 1988.
The problem arises when the clause goes further — attempting to claim IP you created entirely in your own time, using your own equipment, with no relation to your employer's business.
Watch for: Clauses that assign all IP "during the period of employment" without restriction to work-related activities. If you have side projects, freelance work, or personal creative output, negotiate a specific carve-out.
"You may be eligible for a bonus at the discretion of the company" sounds positive. In practice, it means you have no legal entitlement to a bonus — even if one was promised verbally, even if everyone in your team receives one, even if you've had one every year for five years.
Courts have held that truly discretionary bonuses cannot be claimed as a contractual right. However, an employer cannot exercise their discretion in a way that is irrational, perverse, or in bad faith.
What to push for: If a bonus was a key part of your remuneration negotiation, seek to have it quantified and the criteria made objective. "A discretionary bonus based on individual performance assessed against agreed targets" is significantly stronger than an open-ended discretion.
Most contracts include a probation period — typically three to six months — during which reduced notice applies and performance is assessed. This is normal.
However, watch for clauses that attempt to restrict your statutory rights during probation. Your right not to suffer unlawful discrimination, your right to the National Minimum Wage, and your right to statutory sick pay apply from day one — they cannot be watered down by a probationary clause.
The right to claim unfair dismissal only accrues after two years' continuous employment, so a dismissal during probation (for most reasons) is harder to challenge — but it cannot be for a discriminatory reason.
Confidentiality clauses are legitimate. Every employer has a right to protect genuinely confidential information — trade secrets, client lists, proprietary processes.
But some clauses define "confidential information" so broadly that they effectively prevent you from using any knowledge or skill you developed in the role. This can conflict with your right to use your general skills and experience in future employment.
What's protected: Genuine trade secrets, specific confidential data. What's not protected: General skills, industry knowledge, publicly available information.
Also look for duration — post-termination confidentiality obligations are only enforceable if they protect genuine trade secrets (not general confidential information, which is only protectable during employment).
Employers cannot make deductions from your wages without your written consent — except in limited statutory circumstances (tax, National Insurance, student loan repayments). The Employment Rights Act 1996 makes this clear.
Some contracts attempt to include blanket consent to deductions for things like:
Training cost deduction clauses (sometimes called "clawback" clauses) are lawful in principle but must be reasonable — the amount must reduce over time and reflect actual cost, and requiring you to repay training costs after three years would likely be unenforceable as a penalty clause.
Non-solicitation clauses prevent you from approaching former clients or colleagues after leaving. These are more commonly enforced than non-competes because they protect a more specific interest.
However, they must still be reasonable in scope:
What to check: Does the clause restrict you from being approached by clients (difficult to enforce) or only from actively soliciting them? Does it apply to clients you never personally dealt with?
Getting a contract reviewed by a solicitor before you start isn't overcaution — it's sensible, particularly for senior roles where restrictive covenants are more likely to be enforced.
If a solicitor isn't practical, at minimum:
A contract you've signed in good faith and then tried to ignore is a far more difficult position than one you've negotiated before your start date.
Disclaimer: This article is for general information only and does not constitute legal advice. For advice specific to your contract, consult a solicitor regulated by the Solicitors Regulation Authority (SRA). ACAS (acas.org.uk) also provides free employment advice.
Upload any UK legal document and get an instant AI breakdown — clause by clause, risk by risk, in plain English.
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