Explainer: employment contracts and implied terms

Most employees are given, and then sign a contract of employment. Within that contract the rights and duties expected of them are laid out.
But what if they’re not? Does everything have to be in the contract?
An employment contract is made up of different types of terms. Some are explicit. They are expressly or specifically agreed to by both parties, frequently in writing.
These terms often include pay, number of hours and holiday allowance. But they can also include broader terms, for example an employee might be required to travel to see clients, or might be required to work one weekend every month.
By signing the employment contract, an employee is accepting all the terms within the contract.
What are implied terms?
But employment contracts can also include terms that haven’t been written down or explicitly agreed. They can be implied. And they can be implied in different ways. They could be:
- Fundamental to the operation of the employment contract
- Obvious to both parties
- Have become part of the contract through custom and practice
- Duty of care, duty of trust and confidence, and duty of fidelity
- Implied through law, including new laws that have been added to the statute since the employee signed their employment contract. These are known as imposed terms.
Examples of these might include:
- A driving licence might be necessary for a delivery driver role
- No discrimination within the workplace
- A right to enhanced redundancy pay, as the employer has offered that for other employees over a number of years
- The employer will keep the employee safe
- An employee will receive at least the minimum wage and their wage will increase with the national increases to minimum wage.
Other things to note about implied terms
An implied term cannot contradict a written term. And although a great deal can be implied, it is better to have terms written down within an employment contract to avoid confusion and potential disputes.
Employers cannot include anything in a contract that contradicts an imposed term, even if this is written down and discussed with the worker.
If you need more information on employment law, or any aspect of commercial and company law, please contact Umberto Vietri on 01274 352056 or email umberto.vietri@awbclaw.co.uk.
22 May 2026
Read more…
What does the “limited” mean in a limited company?
What is a shareholders’ agreement?
Is a verbal contract legally binding? Yes… maybe… it depends.


