Security between an employer and employee is important to ensure that rights of both parties are protected. This can be done if the employer secures an employment contract. These documents are typically secured by the employer before an employment procedure or if an employment procedure is currently in process. Contracts are legally binding, so if one of the terms stipulated in the contract is breached, legal consequences are to be faced based on what is also stated in the contract. However, overall, you must remember that an employment contract can be very beneficial to both of the parties involved.
Contracts can be pretty tricky. Drafting one for the very first time is going to take a lot of work and you are going to need all of the help that you need. In this article, we would like to give you all of the information that you need to know about employee contracts. We will let you in on the benefits of having contracts, the important elements of a contract, and the nature of employee contracts. There are also a few tips and guidelines for contract that we would like to share in order to make the drafting a whole lot easier for you. Plus, the employee contract templates that we have included can help give you a better perspective about employee contracts and what these contracts exactly say. Just keep reading to learn more about employee contracts.
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Uses of an Employee Contract
Basically, an employee contract is a written agreement between two parties involved in the employment which is the employer and the employee. This document is typically given to an employment candidate right before he/she is hired in the company. This document outlines all the terms and conditions, as well as the policies that the employee needs to know about the company.
It also talks about the benefits of the employee and what are the corresponding consequences to specific breaches that could occur. In cases of breach or misunderstandings, the contract sample will serve as a good reference. To ensure that the contract is legally binding, both the employer and the employee’s signature should be affixed in the contract as this gives the impression that both parties have a mutual understanding about the company.
More often than not, an employee contract is carefully assessed and written by employers to ensure that employees will definitely agree with what the employer is offering and come to an employment agreement.
The uses of an employment can be defined simply in the following statements:
It gives the employee the security that the employer will stick to what is written in the contract. It gives the future employee a reference about what to expect from the company and how employer will be able to supply this expectation.
The contract can help make the future employee aware about what he/she needs to know before entering the employment. Once the employee signs the contract, it serves as a confirmation that he/she is willing to offer his/her services to the company.
These documents are to be honored and what is stated in the contract should be carried out for the rest of the employee’s employment in the company. Contracts pay a vital role as it helps to ensure that no rights are violated.
Characteristics of a Good Employee Contract
Precision and Accuracy
The information that should be present in the contract should be precise and accurate. It should also be in detail to ensure that there will be no misunderstandings and expectations are easy to supply.
Contracts tend to be very lengthy as they are written in detail. By using simple and easy to understand language, it ensures that you will not lose the attention of the future employee.
The content of the employee contract should be arranged according to importance. You have to ensure that you format your contract in a way that would make everything flow smoothly together with similar elements grouped together.
Information to Include in a Contract
What is included in an employment agreement contract is very crucial as it is all about the employment of the future candidate. Such details that should be found in the contract are as follows:
This will include the following:
- The title of the job
- A description of the job
- A detailed description about the nature of the job and the job functions of the employee
- The department that the employee will be a part of
- The schedule about when performance appraisal or performance review will be done
- The amount of time that the employee will be under probation
- Compensation schedule or when the schedule of pay will be
- The amount of compensation the employee will be receiving
- Overtime pay
- The number of days that the employee is expected to report.
- The number of hours that an employee is supposed to be rendered in a day.
- The number of sick leaves, vacation leaves, and other leaves (such as maternity leave, paternity leave, etc.) that the employee is entitled to for a certain amount of time.
- The work schedule of the employee whether it is day shift, mid shift, or night shift/graveyard shift.
- Shift changes that may occur during the employee’s employment.
Other employment Details
- Employment classification
- The terms and conditions applicable for the employment classification.
- Confidentiality agreements that may cover what is written in the contract, the memos presented to the employee, the business nature, as well a other things that are covered by the employment.
- Termination grounds that the employee should know.
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Why Use Employee Contracts?
What a contract is basically trying to do is to protect both the employer and the employee, as well as the company and the business processes of the company. Want to know more benefits that an employee contract provides? Check out also what we have to share below:
- Employment contracts give an assurance that an agreement has been achieved between the employer and the employee that both parties have to honor. With this being said, should there be any disputes, it will be easier to resolve it.
- Employment contracts give the employees a good idea about what they need to expect from the employers and how these expectations are to be supplemented by the employer.
- It will be easier for the parties involved to refer to what their obligations to the company are. It will also be easy to see if both parties are sticking to the obligations that were set out for them.
- Employment legal contracts can clarify all the things that the employee needs to know about the employments since these documents are written in detail.
Now you know a little bit more about employment contracts. We hope that these tips will help you come up with a good initial draft. Of course, you can seek the help of a legal expert such as an employment attorney or a legal aid with expertise in employment contracts.
If you are still quite confused with how to start writing the initial draft of your employee contract, checking out the employment contract templates that we have uploaded on this very article can be of great help. The sample templates that we have for you give you the basic outline about what employment contracts look like. The templates come in PDF and contract template in Word Document file formats. You can download the format you wish to work with and what seems to be more convenient for you. Plus, these samples are all available for free so you can download as many samples as you want to to use as reference.
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