Contract Clauses Explained in Plain English

Browse 200+ sample articles free, written in plain English for businesses and individuals. The full library is for members.

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Employment

Drug Testing Policy

📖 3 min read

This clause requires you to submit to drug or alcohol testing, usually before hire or after an accident. It matters because drug testing is heavily regulated: in the US, federal law allows testing for safety-sensitive jobs (like driving or operating

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Employment

Social Media Policy

📖 3 min read

This clause controls what you can post on personal social media accounts, usually to protect the company's reputation and confidentiality. It matters because courts have increasingly protected employees' personal speech rights; in the US, the Nationa

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Employment

Moonlighting Restrictions

📖 3 min read

This clause stops you from working a second job or running a side business while employed. It matters because courts in both the UK and US generally allow employers to restrict outside work that competes with the company, wastes your energy, or breac

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Employment

IP Ownership by Employee

📖 3 min read

This clause determines who owns intellectual property (IP)—things you create like software code, designs, writing, or inventions. Most employment contracts say the employer owns IP created during work hours or using company resources. This matters le

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Employment

Confidentiality Duration

📖 3 min read

This clause requires you to keep the employer's secrets (business plans, client lists, financial data, product designs) confidential for a set period—often "during employment and for X years after." This matters legally because confidentiality is a c

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Employment

Post-Termination Restrictions

📖 3 min read

This clause (also called a "restrictive covenant") limits what you can do after you leave the job—typically preventing you from working for competitors, poaching clients, or using trade secrets. These clauses are legally enforceable only if they're "

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Employment

Notice Period Reciprocity

📖 3 min read

This clause sets how much warning you and your employer must give before ending the employment relationship. "Reciprocal" means both sides give the same notice (for example, both must give 4 weeks). This matters legally because notice periods are enf

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Employment

Pension Auto-Enrolment

📖 3 min read

This clause requires your employer to automatically put you into a workplace pension scheme and contribute money on your behalf. Under UK law (the Pensions Act 2008), employers with at least one employee must do this by law—it's not optional. The cla

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Employment

Sick Pay Provisions

📖 3 min read

This clause sets out how much pay you receive when you're too ill to work and for how long. Sick pay matters because illness can happen to anyone, and you need to know whether you'll lose income. In the UK, the legal minimum is Statutory Sick Pay (SS

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Employment

Holiday Entitlement

📖 3 min read

This clause specifies how many days of paid vacation you receive per year and when you can take them. Holiday entitlement matters because it directly affects your work-life balance and income—unused holidays represent lost pay. In the UK, the legal m

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