During the early centuries, transacting business matters was easy. Two people may easily agree to trade without worrying if the other party fails to honor their word. But due to…continue reading
What is an employment contract?
The document handed to you by an employer during the final stage of the recruitment process is known to be the employment contract. It is a kind of contract used in labor law to establish the rights and responsibilities of the two parties involved in an agreement. It is typically voluntary, which means that either party may choose to accept or reject the contract if it fails to meet their respective terms. However, employment contracts are only enforceable in the court of law if they meet the required standards.
The Pros and Cons of Employment Contracts
Like most business documents, employment contracts have their own share of advantages and disadvantages. One of the primary benefits of the contract, for instance, is how it helps retain top performers and reduce the rate of costly turnovers. A considerable amount of time and money is invested to hire and train a new employee for the position, so the last thing you would want is for your investment to walk out the door by the end of a mere six-month tenure. Recruiting costs, relocation costs, and sign-on bonuses are just a few other expenses that companies may incur due to sudden resignations.
Contracts are also useful for protecting the interests of the business. When employees are given the authority to work with sensitive company information, contracts help prevent employees from disclosing this information to the public or using it for personal gain. Including a confidentiality clause in these contracts is crucial in ensuring that employees are aware of the consequences of their actions.
But on the other hand, establishing your provisions early on can also limit your ability to adapt to changing conditions. Unforeseen circumstances can sometimes cause major changes in the course of your business operations. You will have to renegotiate these terms, settle with the employee’s proposition, or possibly deal with financial penalties caused by the breach. Thus, the risks brought by employment contracts should always be considered before they are written. It’s also best to have the document reviewed by a legal counsel to determine its validity.
Employment Contract Samples
Let’s look into some of the most common examples of employment contracts.
Accountant Employment Contract
Entrust the company’s accounting responsibilities to an employee through a contract.
Associate Attorney Employment Contract
Formally welcome a new member to your legal firm with an employment contract.
Basic Contract of Employment
Specify the rights and responsibilities of employees in a basic employment contract.
Bus Driver Employment Contract
Sign a qualified candidate to the position of bus driver with the help of a contract.
Business Employment Contract
Set the terms and conditions of a specific job position in an employment contract.
Casual Employment Contract
Employ a person on casual terms by using the given sample as reference.
Chief Executive Officer’s Employment Contract
Clarify the newly hired CEO’s compensation arrangements in an employment contract.
City Attorney Employment Contract
Formally recruit and employ a city attorney through a contract.
Contract for Faculty Employment
Notify new faculty members of their employment with a written contract.
Contract Form for Part-Time Employment
Specify the details that apply for part-time employees in a contract.
Direct Employment Contract
Act as an intermediary between job seekers and clients through a direct contract.
Domestic Staff Employment Contract
Clarify the employment terms of your domestic staff members in a contract.
Domestic Worker Employment Contract
Ensure that the rights of domestic workers are communicated accordingly through a contract.
Employment Contract for Caretaker
Provide authorized access to your premises by setting your terms down in a contract.
Employment Contract for Catering Industry
Form a binding agreement with your catering staff using an employment contract.
Employment Contract for Fixed-Term Employees
Hire an employee for a specified period of time using a fixed-term employment contract.
Employment Contract for International Business Companies
Globalize your business by designing the perfect contract to employ staff.
Employment Contract for Musical Director
Develop a contract for a musical director position with the help of this sample.
Employment Contract for Secretary
Discuss the details of one’s employment as secretary through an official contract.
Executive Director Contract Agreement
Provide security by preparing a contract agreement for the executive director.
Freelance Work Contract Agreement
Get employed as a freelancer by discussing the provisions of your work in a contract.
Gardener Employment Contract
Hire a gardener for your property by using a contract to express your conditions.
Head Coach Employment Contract
Outline the duties and obligations of the head coach in a formal contract.
Head Cook Employment Contract
Create a contract to hire a head cook for your kitchen staff with the help of the sample provided.
Household Nanny Employment Contract
Set the tone of your working relationship with a nanny for your household using a contract.
Housekeeper Employment Contractor
Finalize your search for a new housekeeper by writing a suitable contract.
Human Resources Manager Employment Contract
Define the responsibilities of an HR manager in an employment contract.
Individual Employment Contract
State the obligations of two parties in an agreement through an individual employment contract.
Janitorial Services Employment Contract
Get employed by clients by letting them know about your janitorial services through a contract.
Lecturer Employment Contract
Lay out the duties that come with the lecturer position in an employment contract.
Manager Employment Contract
Enhance administrative stability and continuity within the company through a contract.
Managing Director’s Employment Contract
State the important provisions of the new or existing managing director in a contract.
Model Contract of Employment
Make a legally valid employment contract with the help of this sample.
Model Service Contract
Design an employment contract for service-related duties through this sample.
Nanny Employment Contract
Hire a nanny for your children by outlining the scope of your agreement in a contract.
Nursing Contract Agreement
List the type of services to be provided by the employed nurse in a contract agreement.
Personal Assistant Employment Contract
Avoid misunderstandings by negotiating your terms in an employment contract.
Physician Employment Contract
Make sure that physicians understand the contract provisions by putting it in writing.
Police Chief Employment Contract
See to it that candidates understand the terms of the position by preparing a contract.
Preschool and Kindergarten Employment Contract
Describe your conditions of employment using a carefully written contract.
Principal’s Employment Contract
Provide important details about the school principal’s employment in a contract.
Sales Representative Employment Contract
Use a solid legal document to hire effective sales representatives through this sample.
School Security Guard Employment Contract
Protect company premises by employing a security guard using a formal contract.
Secretary Contract of Employment
Specify the specific details that cover a secretary position in a binding contract.
Senior Executive Employment Contract
Prepare a senior executive employment contract with guidance from the given sample.
Senior Medical Officer Employment Contract
Express the duties and benefits for the medical position through an employment contract.
Standard Employment Contract
Govern your relationship with employees through the use of a contract.
Student Employment Contract
Set the policies and provisions for student employees in a contract.
Temporary Contract of Employment
Secure legal protection by clarifying the terms of the temporary position in a contract.
Key Elements of an Employment Contract
As your company continues to grow, hiring new talents to build and expand your team becomes a priority. The recruitment process might be a long, complicated one, but it all boils down to knowing what you can do to maintain a solid and reliable workforce. As an employer, you want to make sure your company and your employee reap equal benefits from the relationship. This can be spelled out in detail by including the following elements in your employment contract.
How to Write an Employment Contract
At its core, an employment contract defines the relationship between an employer and an employee. Putting your interests, expectations, and requirements down on paper is an absolute necessity for businesses of any nature. But contrary to what many believe, crafting an employment contract is a simple procedure that can be achieved with careful consideration and legal support.
To help you understand how these contracts are drafted, let us discuss each section below.
Always start by letting people know what they are getting themselves into. Begin with an introduction of what the document is for, who it concerns, and when the contract was finished or signed. Make sure to explain the purpose of the contract based on the understanding of both parties. Although this does not describe any details about the employment, it does provide a general overview of its scope.
Job Description and Duties
There are a ton of jobs in the market that people know little to nothing about. Some job positions may seem boring and vague, while others can sound extremely odd and specific. Regardless, every employment contract should have a section that explicitly defines the employee’s title, duties, and expected working hours. The rights and obligations of the employee must be clearly articulated to avoid any misunderstanding. Experts suggest leaving room for flexibility so you can make the necessary modifications without being accused of breaching the contract. Careful wording and unambiguous statements will definitely save you from unwanted headaches in the near future.
Compensation and Benefits
For the sake of simplicity, you might want to merge these two items into one clause. Your employees will be very interested in this section, as this alone can cause a person to doubt their decision on whether they want to work for the company or not. Will employees be compensated for working overtime? How are commissions calculated? Are there any policies relating to travel or work reimbursements? Consider the questions that readers might have and address them clearly in the contents of your document.
Term and Termination
The start and end period of the contract is an essential part of its implementation. It clarifies the conditions in which the contract can be terminated and the entity responsible for doing so. Unlike temporary employment contracts, unlimited term contracts usually begin with a trial period in which employees are put on probation to further evaluate their skills and work ethics. This will typically last for an average of six months or so, as delays are bound to occur depending on one’s performance. Once the term ends, employers can choose to terminate the employment or to extend the contract indefinitely.
Confidentiality, Non-Compete, and Conflicts of Interest
Over the years, cases of a company’s proprietary information falling into the hands of competitors have become a common concern in the world of business. While investigations have sometimes led to a dead end, court reports point the source of these leaks to former company employees. This can be damaging to the organization’s plans and strategies against market competitors. Thus, including a confidentiality statement in your employment contract is very important. Employees should know the consequences they could face should they fail to comply with the provisions that were stated.
Other Possible Clauses
Employment contracts usually vary depending on the industry or location of the business. Position-specific requirements are also considered when setting these terms and conditions for better management. Keep in mind that laws in some states prohibit certain clauses from being included in a legal agreement, so be sure to do your research beforehand. You can also include a severability clause to confirm that any provision of the contract deemed unenforceable will not invalidate the rest of the agreement. That way, you can avoid costly disputes and wasted efforts.
An employment contract does not have to be lengthy and complicated to meet legal standards. It does, however, need to be specific, explicit, and logical in all areas for it to truly protect both yourself and your employees from undesired conflict.