Hybrid Contractor Employee Probation Agreement (UK)
Hybrid contractor-to-employee probation agreement for UK services
HYBRID CONTRACTOR-TO-EMPLOYEE PROBATION AGREEMENT
Note: Purpose of this template: this Agreement engages an individual (or a personal service company) as a self-employed Contractor for a fixed Probation Period, during which the parties evaluate whether to convert the engagement to employment at the end of that period. It combines an arm's-length contractor framework with hybrid working arrangements (split between the Contractor's home and the Company's premises). The conversion to employment is optional — neither party is obliged to convert at the end of the Probation Period.
Note: B2B / non-consumer use only: this template is designed for engagements between a Company and an individual or PSC acting in the course of their business. It is not a consumer contract — the Consumer Rights Act 2015 unfair-terms regime under sections 62 to 65 does not apply to a contract negotiated between businesses, but if there is any possibility that the Contractor is engaged in a personal capacity outside their trade or profession, take legal advice before using this template.
Note: Conversion to employment — important caveat: if the parties later agree to convert, a separate written employment contract complying with Employment Rights Act 1996 section 1 is required. This template does not contain employee-grade provisions (statutory sick pay, holiday entitlement under the Working Time Regulations 1998, pension auto-enrolment, statutory dismissal protections) — those belong in the post-conversion employment contract, not here.
PARTIES
(1) [full legal name of the company], a company incorporated and registered in England and Wales with company number [companies house registration number of the company], whose registered office is at [registered office address of the company] (the "Company"); and
(2) [full legal name of the contractor] [, a company incorporated and registered in England and Wales with company number [companies house registration number of the contractor (if psc)], whose registered office is at [registered office address of the contractor (if psc)]] [of [home address of the contractor (if individual)]] (the "Contractor").
Note: Entity type: complete the bracketed company-formation details if the Contractor is providing services through a personal service company (PSC). If the Contractor is engaged as an individual sole trader, delete the company-formation block and complete the home address block instead. Whether a PSC is interposed is relevant to the IR35 analysis in Clause 2 but does not by itself determine whether the engagement is inside or outside the off-payroll working rules.
BACKGROUND
(A) The Company wishes to engage the Contractor on a self-employed basis to provide the Services during the Probation Period on the terms set out in this Agreement.
(B) The parties may (but are not obliged to) agree at the end of the Probation Period to convert the engagement to an employment relationship on terms to be agreed at that time.
(C) During the Probation Period the Contractor is engaged as an independent contractor. This Agreement does not create any employment, worker, partnership, or agency relationship between the parties.
AGREED TERMS
1. DEFINITIONS AND INTERPRETATION
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England & Wales note
This version is drafted for England & Wales. Scotland and Northern Ireland differ on some points — for example notice periods and tribunal procedure. Tell GitLaw where you hire and it adjusts the draft.
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