Implied terms in employment contracts are as legally binding as written ones — and the rules around custom and practice mean employers can sometimes acquire obligations they never intended.
These implied terms fill in the gaps where the contract is silent, reflect legal obligations, or grow out of what actually happens in the workplace day to day.
Three implied terms to be aware of
- Obvious or necessary terms
If a role requires driving, for example, it’s likely to be implied that the employee must hold a valid driving licence—even if the contract doesn’t say so. These are the kinds of things a tribunal would say “go without saying”. - Legally implied terms
These apply to every employment relationship, whether you mention them or not. They include things like the duty to treat each other with trust and confidence, the obligation to pay at least the National Minimum Wage, and basic working time rights. You can’t contract out of these. - Custom and practice
These are often the trickiest. This is where something that happens consistently over time (like paying a regular bonus or allowing early finishes on Fridays) can become a contractual right, even if you originally intended it to be discretionary.
This is where you may get caught out.
Why implied terms matter for employers
- Your contract may not say it—but you could still be legally bound by it.
- Repeating a practice can turn it into a right.
- Managers’ day-to-day decisions can unintentionally change contractual terms.
To take a simple example: If employees have been allowed to leave early every Friday for several years, they may argue this is now a contractual entitlement – even if their contract does not say this.
The key takeaway? Employment contracts aren’t just what’s written down—they’re shaped by law, behaviour, and expectations. Understanding that is the first step in staying in control.
Further reading
- Collective agreements and employee contracts – Hunter Law
- Employment contracts and conditions – UK Government
- Employment contracts: Collective agreements – GOV.UK
- Employment Contracts and the Law – ACAS
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