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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About this template
What is this template?
This document is a commercial services agreement for a fixed trial period rather than a permanent employment contract. It contains specific IR35 status determination clauses and a hybrid working schedule that defines the split between home and office. It does not include statutory employee benefits like pension auto-enrolment or holiday entitlement.
When should you use it?
Use this when you want to trial a person's performance as a freelancer before committing to a formal employment offer. If the individual is already intended to be an employee from day one, use a standard UK Employment Contract instead.
What's inside
| Clause | Name | What it does |
|---|---|---|
| 2 | Engagement, Probation Period and Status | The Contractor acts as a self-employed independent contractor without entitlement to holiday pay or statutory sick pay during the trial period. |
| 3 | Conversion to Employment | The parties must meet to discuss potential employment at least [number of weeks] before the probation period ends. |
| 5 | Place of Work: Hybrid Working | The Contractor splits time between Home and Company premises and must not work outside the UK for more than [number of days]. |
| 10 | Intellectual Property | The Contractor assigns all Intellectual Property Rights in the Deliverables to the Company with full title guarantee upon creation. |
| 15.1 | Termination for Convenience | Either party may end the engagement by giving [number of weeks] written notice at any time during the trial. |
| 16 | Post-Termination Restrictions | The Contractor is prohibited from soliciting Company clients or employees for [number of months] after the engagement ends. |
Who it's for
- a UK business engaging a freelancer to test suitability for a permanent role
- a contractor providing services through a personal service company (PSC) on a trial basis
- an employer implementing a hybrid work-from-home pattern for a prospective hire
- a company needing to manage IR35 status determinations for a medium or large organization
How long it runs and how it's signed
Law it's drafted under
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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