When an employer decides to hire an employee, an employment contract is created to formalize the agreement between both parties and to protect the interests of both the employer and the employee. An employment contract is a written contract that outlines the terms and conditions pertaining to the employment of an individual.
Employment contracts are essential for a number of reasons, one of which is that it clearly defines the obligations and responsibilities of each party to maintain proper employee and employer relationships. You can view our Sample Contracts to help you whip up a contract quickly and easily.
Basic Employment Contract Template
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Standard Employment Contract for Employees
Employment contracts are legally binding agreements that could potentially aid a small business into retaining talented staff members. Below is a list of reasons why employment contracts are essential:
Promotes Employee Loyalty
Having a written contract in place lowers down the risk of having employees switch to another company while the contract is still in effect. Losing an employee who has just been trained can cost an employer time and money. Having an employment contract helps to lessen the potential of this situation from happening.
Non-Compete and Confidentiality Clauses
Some employers include a non-compete clause and a confidentiality clause within their employment contracts. This helps to protect them and the company from employees who share or divulge information pertaining to the company’s confidential or sensitive data as well as trade secrets and bans employees from working with competitors or companies in the same line of business for a period of 1 to 2 years.
Employment contracts also serve as a form of security for employees to formalize their employment with a company or an organization and to properly set expectations pertaining to compensation, work schedules, leaves, benefits, etc. Our contract samples provide templates for your quick employment contract needs. You can also view our other contract samples such as our Construction Contract Sample.
Standard Employment Contract for Non-Skilled Workers
Standard Employee Agreement Sample
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Full-Time Employment Contract Example
An employment contract generally includes the following information:
- name of the employer and the employee
- date of the commencement of work
- job position
- overview of tasks and responsibilities
- probationary period and its duration
- place of work
- paid vacation leaves
- paid sick leaves
- paid holidays
- work schedules
- total number of hours required to work in a week
- non-compete clause
- nondisclosure clause
Some people misconstrue the meaning of an employment contract and a job offer letter. Although both documents carry similar information, they are actually quite different in meaning. Job offers are less formal than an employment contract and generally contain less detail.
Offer letters are usually given to lower-level employees and contain lesser employment details than that of an employee contract because they are simply aimed to inform a potential employee that they are being offered a position. Employee contracts, on the other hand, provide more details pertaining to compensation and benefits and is typically used for higher-level employees. Download our Sample Business Contracts now to help you save on time and money for your business and employment contract needs.
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