Employment contract for restaurant and hospitality staff

Hospitality employment is shift-based, tipped, regulated for alcohol and food, and paid at or near the minimum wage, which means the contract is tested every pay period against rules that have changed recently: tips must now be passed on and allocated fairly, rota notice and cancellation pay are being brought in, and deductions for uniforms and breakages are limited by the minimum wage. The contract has to set pay and hours for a rota, deal with tips, authorise only lawful deductions, and address the age and licensing rules that apply behind a bar. I draft that contract for the employer for a fixed fee of £595, delivered in five working days, as a template for the grade.

Who this is for

Restaurants, bars, cafes, hotels and catering businesses in England and Wales employing front of house, bar, kitchen and housekeeping staff on fixed, variable or zero hours.

What matters in a hospitality employee's contract

Pay, hours and the minimum wage in a shift-based business

The contract should state the hourly rate at or above the rate under the National Minimum Wage Act 1998 for the employee's age, with the National Minimum Wage Regulations 2015 governing what counts as pay (tips do not) and what counts as working time (time on the premises at the employer's requirement does, including setting up and closing down), the hours or the variable hours arrangement, how shifts are allocated, overtime, and the accommodation offset where live-in accommodation is provided; the written particulars under section 1 of the Employment Rights Act 1996 must say whether hours vary and how they are determined.

Tips, service charges and the tips law

The Employment (Allocation of Tips) Act 2023 requires every tip, gratuity and service charge the employer controls to be passed to workers in full by the end of the following month, allocated fairly under a written policy where tips are received more than occasionally, with records kept and available to workers; the contract should refer to the tips policy, state how card tips and service charges are allocated (including to kitchen staff where the policy provides), say that tips are not part of the minimum wage, and give agency staff the same treatment the Act requires.

Rotas, split shifts and the notice staff are entitled to

The contract should state how rotas are published and how far in advance, the notice for changing or cancelling a shift and any payment for late cancellation, the position on split shifts and the unpaid gap between them, rest breaks and daily rest under the Working Time Regulations 1998, and the maximum weekly hours with any opt-out signed separately; the Employment Rights Act 2025 is introducing rights to reasonable notice of shifts and to payment for shifts cancelled or curtailed at short notice, on a timetable the regulations set, and the rota clause should be drafted now to those expectations.

Young workers and alcohol

Staff under eighteen have additional protections under the Working Time Regulations 1998 (longer rest, limits on night work and daily hours) and under the Licensing Act 2003 may sell alcohol only where each sale is specifically approved by a responsible person, and the contract should state the restrictions that apply to young workers, require all bar staff to comply with the premises licence conditions and the licensing objectives, and provide for training on age verification and refusal; a breach of the licence by a member of staff is the employer's licence at risk, and the contract should make compliance a condition of the role.

Uniforms, breakages and lawful deductions

Deductions for uniforms, breakages, till shortages and walk-outs are lawful only with a contractual term or prior written consent under section 13 of the Employment Rights Act 1996, and deductions for items the employer requires reduce pay for minimum wage purposes under the National Minimum Wage Regulations 2015, so a deduction that takes a worker below the minimum wage is unlawful however it was agreed; the contract should authorise in writing only the deductions the law allows and the business needs, state what the employer provides, and say that tips may not be used to make good shortages.

Food safety, conduct and the particulars

The contract should require compliance with the Food Hygiene (England) Regulations 2013 and the employer's food safety management system, allergen procedures under the Food Information Regulations 2014, personal hygiene and fitness-to-work reporting, and the health and safety rules for kitchens and bars under the Health and Safety at Work etc. Act 1974; it should supply the written particulars from day one, set probation and notice with section 86 of the Employment Rights Act 1996 as the floor, refer to the disciplinary and grievance procedures and the handbook, and address statutory sick pay under the Social Security Contributions and Benefits Act 1992, pension assessment under the Pensions Act 2008 and holiday for variable hours staff under the amended Working Time Regulations.

What it costs

Employment contract, £595. One template you can reuse for a grade of staff. Five working days.

Staff handbook and core policies, £995. Five working days.

Buying online forms the engagement on payment. The scope is what the employment contracts and handbooks page describes, you accept the Terms of Service at checkout, and I email you within four working hours to get started. If you would rather ask something first, email me.

What you get

• A bespoke contract drafted for how you employ people
• Restrictive covenants drafted at a scope a court will uphold
• Confidentiality and intellectual property provisions that put ownership where it belongs
• The statutory particulars, so the document does the job section 1 of the Employment Rights Act 1996 requires it to do
• Flexibility clauses where you genuinely need them, drafted to survive challenge
• Core policies: disciplinary, grievance, sickness absence, equal opportunities, data protection and, increasingly, AI use
• One round of amendments

What is not included

• Acting for employees
• Employment tribunal representation
• Payroll, pensions auto-enrolment and tax
• Immigration and sponsor licence work
• Day to day HR handling, disciplinaries, grievances and redundancy processes

Questions I am often asked

Can we keep part of the service charge to cover card fees?

Not any more. Service charges the employer controls must be passed on in full without deduction other than tax, allocated fairly under a written policy. The contract and the policy are drafted to the Act.

Can we deduct for breakages and walk-outs?

Only with a contractual term or written consent, and never below the minimum wage for the pay period. The contract authorises only lawful deductions and says what the employer provides.

Can a seventeen-year-old work behind the bar?

They can serve alcohol only where each sale is approved by a responsible person, and they have additional working time protections. The contract states the restrictions that apply to young workers.

Related guidance and services

• Employment contracts and handbooks, £595, the service this page describes
• Consultancy and contractor agreements, £595
• Settlement agreements for employers, £795
• Employment contract for a chef
• Employment contract for a casual worker

This page is general guidance for businesses in England and Wales, not advice on your own circumstances. Last reviewed: October 2026. Email geoffrey@caesar.co.uk.