Signing a contract for a future UK job: Legal & practical issues

Accepting a role that starts months ahead can be exciting, but it raises unique legal and practical issues. From restrictive covenants to start-date changes, it pays to know your rights before you sign the contract.

This guide considers UK employment law on future-dated contracts, common risks, and step-by-step advice to protect your position.

For a real-world take on the same theme, see our blog: New job offer delay: Manage your notice period.  Also our Guides on employment contracts, and breaches of contract.

What is a future job contract?

A future job contract is a legally binding agreement stating you will start work on a set date. Once signed:

• You commit to starting on that date.
• The employer commits to employing you on the agreed terms.
• You must still meet all obligations to your current employer until your notice period ends.

 

Is it legal to sign a new job contract while still employed?

Yes. UK law allows you to sign a contract for a new job while you’re still employed, providing you:

• Continue fulfilling your current role until your notice period ends.
• Comply with restrictive covenants. These can include clauses in your existing contract prohibiting you from taking up a new job at a firm which is in direct competition to yours, or from enticing clients at your old firm to switch their business to your new company.
• Do not share your current employer’s confidential information.

 

Benefits of signing early

There are several benefits associated with signing a contract in advance for a new job, such as:

• Job security: which makes you feel more confident about your future job role and more certain that it is actually going to happen.
• Preparation time: you can use the time between signing a new contract and the last day of your notice period with your existing employer to do such things as upskilling, budgeting and planning relocation if needed.
• Clear transition: lets you plan your resignation so it aligns with your new job start date.

 

Risks and how to mitigate them

Here are some common risks associated with accepting a new job that doesn’t start for several months and what steps you can take to mitigate, or at least minimise, the different negative impacts associated with each risk.

New employer withdraws offer

Signed contracts can be withdrawn, even though that can be a breach of contract. Remedies may include seeking damages compensation or notice pay.

Mitigation: Secure all terms in writing and keep a copy.

Changes to new role or terms

If the employer alters the role, pay, or location before you start, their ability to do so depends on the employment contract wording.

Mitigation: Clarify all key terms before signing.

 

Impact on current job

If word that you’re leaving your current job gets out early, it can affect your workload and workplace relationships.

Mitigation: Keep confidential your decision to leave and don’t disclose it to colleagues until absolutely necessary.

Step-by-step contract signing & transition plan

Here are some tips about steps you can take before and after signing your new contract, how to to conduct yourself during any gap between signing and resigning and what to do if plans for the new job seriously change.

1] Before contract signing

• Review all terms — job title, start date, salary, benefits, probation, and location.
• Check for restrictive covenants that could conflict with your current role and contract.

2] After contract signing

• Calculate your resignation date so your notice period ends the day before your new job starts.
• Keep your plans confidential until you give notice.

3] During any gap between signing and resigning

If news gets out that you are going to take up a new job before you have resigned from your old one, make sure that you:

• Maintain professionalism in your current role.
• Document any negative changes in the way your employer treats you.

4] If plans for the new job change significantly

• Have a backup option (updated CV, alternative job alerts set up).

 

Legal scenarios to consider

Here are some legal scenarios that may lead to your new employer, or possibly even you, doing something that’s unlawful.

What if you get a better offer after signing the new job contract?

Withdrawing from the new job may breach the contract you’ve signed and reputational damage (your reputation) is likely even if your employer doesn’t take legal action against you.

What if your new employer changes the start date?

If the start date is fixed in the contract, changing it without your consent may breach the agreement.

What if you get a counter-offer from your current employer?

You can accept a better offer from your current employer, but make sure you don’t breach your new contract before you accept the offer.

FAQs: signing a future new UK job contract

Is a future job contract binding in the UK?

Yes. Once signed, both sides are legally bound.

Can a future employer withdraw the contract before the start date?

They can try, but it may be a breach of contract. Remedies depend on the extent of any losses you may have incurred as a result, and the contract terms.

Do I have to tell my current employer that I’m signing a future contract?

No, not until you serve formal notice.

What if I resign or my employer finds out I’m leaving and puts me on garden leave?

If you’re put on garden leave, you’ll be paid but not required to work. It gives you time to rest and prepare for the transition. It also reduces your exposure to confidential information or key business developments, which may help you comply with any restrictive covenants in your contract.

Can I be sued if I back out of an employment contract I’ve signed?

It’s rare but possible if the employer suffers loss.

 

How Monaco Solicitors can help

Monaco Solicitors are expert employment law solicitors who only represent employees (not employers). We only deal with employment law cases and our team is highly experienced across nearly all areas of employment law.

We can advise employees on all aspects of employment contracts, from reviewing restrictive covenants to handling breaches of contract, and help you take legal action if appropriate.

If you’ve got an issue with your new contract or your present contract, get in touch to check out how we can help you to resolve it.

Phone: 020 7717 5259  

Email: communications@monacosolicitors.co.uk 

Online:  Complete our online case details form