UK Contract Type Guide · 2026
What are my rights on a UK permanent contract?
Definition
An open-ended contract of employment with no specified end date. Continues until terminated by either party giving the contractual notice. Most professional/managerial UK roles are permanent. Employer + employee both have ongoing obligations and rights.
Rights and protections
Full UK employment rights from day one: National Minimum Wage; 5.6 weeks holiday + bank holidays (typically); statutory sick pay (eligible employees); statutory maternity (52 weeks), paternity (2 weeks split-able), parental, dependant leave; pension auto-enrolment (8% combined min, often higher); protection from discrimination. After 2 years: unfair dismissal protection; statutory redundancy pay; written reasons for dismissal. Statutory notice: 1 week per year of service (max 12 weeks).
Employer obligations
Pay agreed wages and benefits; comply with all employment law; conduct fair disciplinary/grievance procedures; provide written terms of employment (statement of particulars by day 1); not discriminate; reasonable health & safety; honour notice; consider flexible working requests; maintain pension contributions.
Tax and pay implications
PAYE employee — full income tax + NI deductions. Employer NI contribution. Pension auto-enrolment from age 22 if earning £10,000+/year (3% employer min, 5% employee min, 8% total min, often higher). Tax-free benefits possible (pension, salary sacrifice schemes, EV cars).
Common use cases
Most professional and managerial roles in the UK; long-term operational roles; building sustained careers; mortgage/lender preference (lenders prefer permanent for income reliability); maximises legal protection.
Worked example
Sarah accepted a permanent contract as Marketing Manager at £62,000. From day one she had: 25 days holiday + 8 bank holidays, 6% employer pension contribution, full SSP eligibility, discrimination protection. After 2 years she gained unfair dismissal protection. After 3 years when she was made redundant, she received: 3 weeks' statutory redundancy pay (£700/week cap × 3) PLUS her contractual enhanced redundancy of 2 weeks per year of service = a total settlement well above statutory minimum.
Recruiter pro tip
Permanent doesn't mean unfireable — it means terminated only with notice (and after 2 years, only with fair reason and procedure). It's the strongest UK employment status because it preserves your full statutory rights AND gives mortgage lenders/landlords the income certainty they require. If considering a contractor role with a higher day rate, factor in the lost employment benefits (holiday, sick pay, pension, employment protection) — often the gross figure is misleading without these adjustments.
Related contract types
How do UK fixed term contracts work?
A fixed term contract has a specific end date or ends on completion of a specific task/event. Fixed-term emplo…
What is the difference between self-employed, worker, and employee in the UK?
UK employment status has three categories: (1) Employee — full employment rights and PAYE; (2) Worker — limite…
What are my rights during a UK probationary period?
UK probationary periods are NOT a legal status — they're a contractual mechanism. During probation you have AL…
Related across UK Rights & Guides