Are you opening a new restaurant? For your restaurant to operate its business well, you need a lot of employees who will be responsible for keeping the restaurant running to prepare and serve food to customers. To employ a restaurant staff, hiring qualified persons is just one step. If you’ve got the qualified people to run your restaurant, a contract must be made first to let them sign it which will officiate their employment to your business. Read the article to know how to make a staff contract for your restaurant employees.
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What is a Staff Contract?
A staff employment contract is a legal document that outlines the terms of employment offered to a restaurant employee by the employer and describes the conditions of the employee-employer relationship.
Details to Include in a Restaurant Staff Contract
1. Information of Both Parties
This one’s pretty self-explanatory: Many employment agreements start with a simple sentence that includes the new employee’s name, your restaurant’s name, their position, and their start date.
2. Employment Status Clause
Restaurants may require different types of employees. Some may be full-time, salaried employees; some may be part-time, hourly employees; and some may be more casual, on-call employees.
3. Job Description
Including a detailed job description promotes transparency with your restaurant staff. By having a clear job description, there will be little room for ambiguity with the expectations of your employee/s. This may make it easier to hold your employees accountable for outstanding work or when things go wrong.
4. Compensation Clause
Employees may receive a salary, be paid hourly, or be paid with a combination of wages from you (the employer) and tips from customers. Your restaurant’s employment contract should spell out the details of compensation. Additionally, if employees are entitled to paid vacation, health insurance, and other benefits, those things should be included in this clause of the agreement.
3. Termination Pay Clause
Laws about termination pay tend to differ pretty significantly from one place to the other. Your lawyer can help you determine whether or not an employee will be entitled to receive termination pay if you fire them. Some places require that employees be provided a minimum amount of severance pay on termination, while others don’t specify. If you are located in an area that requires paying a minimum amount of severance, it is a good idea to include a termination pay clause in your restaurant’s employment contract, so the employee understands what they’re entitled to.
4. Non-Compete, Non-Solicitation, Non-Disclosure Clause
These three contract clauses are easy to get confused with. Here are the following descriptions of those:
- Non-compete clauses: It prevents employees from leaving your restaurant to work for a competitor or requires employees to wait a certain amount of time before working for a competitor.
- Non-solicitation clauses: It prevents employees from leaving your restaurant and trying to take other employees with them.
- Non-disclosure clauses: It prevents employees from sharing proprietary information about your restaurant with others outside of the business.
In general, it’s a good idea to include non-disclosure clauses in the employment contracts of all your employees. You may want to reserve non-compete or non-solicitation clauses for a manager or executive chef to prevent them from working for a competitor or from starting their own restaurant and bringing your best staff with them.
5. Intellectual Property Rights Clause
If any of your employees participate in creating any intellectual property from your restaurant, make sure to include clauses in your employment contracts that specify that the employer owns all of that intellectual property. With these clauses, you can have an employment contract that will protect both you and your employees.
What are common types of contracts used in restaurant services?
- At-will contract: At-will contracts let employers fire employees for legal reasons. For example, discrimination is an example of an illegal reason to fire an employee.
- Fixed-term contracts: These are contracts used for temporary employment of a predetermined length of time. A restaurant may use a fixed-term contract to look for a temporary replacement for an employee who is on maternity leave.
- Independent contractor contract: Independent contractors (also known as freelancers, contractors, or consultants) are self-employed and technically not considered employees of your restaurant. They may hire a social media manager or graphic designer in this capacity.
How many staff are in a restaurant?
A restaurant having 1,000 to 6,0000 square feet in size have around 50 employees.
What employees do you need for a restaurant?
There is a lot of employees the restaurateur needs to work with to keep the restaurant operating. Some examples of restaurant workers are:
- General Manager
- Executive Chef
- Sous Chef
- Pastry Chef
- Kitchen Manager
- Line Cook
- Fast Food Cook
- Bus person
Once you’re done creating the contract, don’t print it out yet and let the new restaurant staff sign it. Review it first for any grammatical or spelling mistakes, check the language used if it sounds appropriate, and read if the content is written concisely. Do some revisions if you’ve spotted mistakes. When the time comes for the restaurant staff to sign it, encourage them to ask questions before they sign the contract. Once the contract is signed, congratulations on having a new restaurant staff! To help you get started making the contract, download our free sample templates above to use as your guide!
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