Employment Contract

Hire employees with productive contract templates available across CocoDoc. Discuss all major details within the contract before hiring an employee.

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Whenever a company hires new employees, they consider signing an employment contract between the employee and the employer. It formalizes the duties and rights of the worker and the company. The agreement covers the working relationship and allows both parties to perceive their obligations and the terms of employment.

Employee contract is a great step to clarify the responsibilities, role, and benefits to prevent any confusion. However, if there occurs an event of a dispute or disagreement in the future, then both groups can refer to the contract.

What Are the Common Types of Employment Contracts?

There are different types of employment contracts depending on the employment status of the individual.

  • Permanent Employment Contracts

Such contracts apply to those employees who work regular hours and are paid a salary or hourly rate. Permanent contracts are ongoing until terminated by either the employee or employer.

  • Fixed-term Contracts

If you are looking to cover emergency leave, take on interns, or staff a big project, then you may consider a fixed-term contract. These contracts give a set end date, like six months or a year. The fixed-term employees can be extended and offer the same rights as permanent employees.

  • Casual Employment Contracts

These kinds of employment contract templates are suitable when you want a person to commit to working for you. In a casual employment contract, you are not sure about working hours and a regular working pattern.

Why Need an Employment Contract? When Do You Need it?

It is always important to check things whenever they are bought from another party. In several cases, the parties demand to sign a written document beforehand to avoid any misunderstandings among them. This makes employment contracts important, as they allow us to legally define the relationship between the company and its employees.

It is a basis for protecting the company's interest and the employee's specific role in the company. The major purpose of using a work contract is to provide the time frame about how long an employee is contracted to work with the company. It also serves as the right savior for employees, which describes the bonus or benefits, and all the duties to perform.

Moreover, it holds all the details about the employee's health, annual leave days, sick days, and much more. The contract is essential when you have been consulting independently or in partnership, and one of your clients wants to hire you.

This would allow the new employer to understand your worth as a specialist in your job. The use of a contract of employment allows the employee to save themselves from being terminated without any cause.

What Are the Main Elements of an Employment Contract?

Here are some main elements that should be included in an employment contract template.

  • Scope of the Position: This explains what the job will entail. It layouts the job title, duties, responsibilities, and location of the employment.
  • Length of Agreement: The service contract template should contain favorable elements to both parties. Therefore, it should dictate an original term of employment.
  • Compensation: This section of the agreement addresses the conditions needed to achieve bonuses or raises, such as goals or milestones.
  • Benefits: It explains what benefits the employer is going to provide to the employee, such as life insurance or health insurance, etc.
  • Confidentiality: For some particular positions, the agreement includes confidentiality, which limits the employee and employer from disclosing the information publicly.

Conclusion

To satisfy and clarify employees and employers, the employment contract has great value. It states all the rules and regulations, work hours, and benefits that will satisfy the workers. Therefore, it is necessary to understand each section of the agreement before you get into it.

Employment Contract FAQs

Do I need to issue a contract to my staff?

Yes, your employees are qualified to receive a work contract, which fulfills the requirements of a written statement of the particulars. It should include the employer's name, the employee's name, and the start date of employment.

How soon should I give the statement of particulars after hiring someone?

You must provide a written contract within two months of the employee starting work. If the employee is to work abroad for one month, he or she must be offered a contract before leaving the country. If your employee leaves his or her job within two months, then you will need to give a written contract.

Can I let my employee work for someone else?

Your employees usually have the right to work for others while they are not working for you. In many cases, employees can work for their competitors in their own time. Therefore, if you want to stop your employee from serving others, you must include any restrictions within the terms of their agreement. Any restrictions should be reasonable.

When is the zero-hours contract appropriate?

Zero-hour contracts are ideal for employers who can guarantee a certain number of hours per week to their workers. This type of arrangement is, therefore, more suitable for flexible employers. Zero-hour contracts can also provide flexibility for employees because they will often be able to refuse to work if it is appropriate.

How can I protect my business when an employee leaves?

Unless you provide this in their employment agreement, your employees are free to do whatever they want after the end of their employment. If your former employer violates their agreement, you should be able to apply to Court for order and compensation. However, post-suspension agreements should be reasonably scaled up and should only protect your legitimate business interests.