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Employment Term Sheet Template for England and Wales

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Key Requirements PROMPT example:

Employment Term Sheet

"I need an Employment Term Sheet for a senior software engineer position in our London office, starting March 2025, with specific provisions for hybrid working arrangements and equity compensation through our employee share scheme."

Document background
An Employment Term Sheet is commonly used in England and Wales during the hiring process to document and align on key employment terms before preparing a full employment contract. It typically follows successful job interviews and salary negotiations, providing a clear summary of the agreed terms. The document includes essential information such as job title, compensation, benefits, working hours, and start date. While more concise than a full employment contract, the Employment Term Sheet must still comply with UK employment legislation and often serves as a reference point for preparing the final employment agreement.
Suggested Sections

1. Basic Information: Employee and employer details, job title, employment status

2. Start Date and Duration: Commencement date, term of employment, probationary period

3. Compensation: Base salary, benefits, bonus structure

4. Working Hours and Location: Standard working hours, place of work, flexibility arrangements

5. Holiday Entitlement: Annual leave allocation and terms

Optional Sections

1. Equity Compensation: Share options or other equity arrangements, used for senior roles

2. International Mobility: Travel requirements and arrangements, used when role involves international work

3. Commission Structure: Details of commission schemes, used for sales roles

4. Remote Working: Specific arrangements for remote work, used when applicable

Suggested Schedules

1. Benefit Summary: Detailed breakdown of benefits package

2. Bonus Scheme Rules: Detailed terms of any applicable bonus schemes

3. Job Description: Detailed role responsibilities and requirements

Authors

Alex Denne

Head of Growth (Open Source Law) @ ºìÐÓÖ±²¥ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Relevant legal definitions




















Clauses




















Industries

Employment Rights Act 1996: Primary legislation covering basic employment rights, notice periods, unfair dismissal provisions, and requirements for statement of employment particulars

Equality Act 2010: Legislation governing protected characteristics, non-discrimination requirements, and equal pay provisions in employment

Working Time Regulations 1998: Regulations covering working hours limits, rest breaks, holiday entitlement, and night work restrictions

National Minimum Wage Act 1998: Legislation establishing minimum wage requirements and pay calculations

Pensions Act 2008: Law governing auto-enrollment requirements and pension scheme obligations for employers

Data Protection Act 2018 and UK GDPR: Legislation concerning employee data handling and privacy considerations in employment relationships

Health and Safety at Work Act 1974: Law establishing workplace safety obligations and requirements

Part-time Workers Regulations 2000: Regulations ensuring equal treatment for part-time workers and preventing less favorable treatment

Fixed-term Employees Regulations 2002: Legislation protecting rights of fixed-term employees and preventing less favorable treatment

TUPE Regulations 2006: Transfer of Undertakings regulations protecting employment rights when business ownership changes

Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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