If your business deals with a lot of special projects to work on or you suffering from workload fluctuations and staff shortages, one way to address these concerns is to employ temporary employees to help you complete the necessary tasks and responsibilities to get your business operations back to being efficient. Since many people are looking for jobs, this type of hiring strategy is effective for employers. Temporary employment can also benefit the employee as well since they have more flexibility on when and where they want to work. If you’re interested in hiring employees for a specific period, you must know how to create a temporary assignment contract for them to agree on. This type of contract is created differently compared to other types of employment contracts, so it’s important to know what details should be put in it. This article will guide you on how to make a temporary assignment contract.
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What is a Temporary Assignment Contract?
A temporary assignment contract also called a temporary employment contract is a written legal agreement signed between an employer and an employee in which both parties have decided that the employee is employed in the company or organization only for a specific period. This contract will regulate the working relationship between the employer and employee.
Details to Include in a Temporary Assignment Contract
- Information of the Parties Involved: The first part of the contract must include the names and addresses of both parties involved in the contract. You must also identify who is the employer and who is the employee in the contract as well.
- Employment Terms: This section must state the main subject of the contract which is that the employee is under a temporary assignment contract and they are legally bound to follow the regulations of the contract.
- Salary and Compensation: Don’t forget to state the amount of money that will be paid for the temporary employee, how the payment will be given to them, and how often they will receive it. If the employee is eligible to receive compensation, don’t forget to present all useful information regarding this such as their leave entitlement, health care, insurance, etc.
- Employment Period: State the employment start and end date of the temporary employee. If you present an option to extend the employment contract, state the requirements needed for it.
- Rights and Responsibilities of the Parties: Describe all the rights and responsibilities that both parties are entitled to have and to observe within the agreement.
- Additional Terms: Include other important terms necessary to include in an employment contract such as severability, jurisdiction, governing law, termination of the contract, etc. to help protect both parties from legal hitches.
- Contact Information: Provide all the necessary contact information such as phone numbers and email addresses of both parties to ensure that each party can be reached anytime in case of any important instances.
- Signature Lines: Conclude the contract by providing lines where both parties can sign the contract and include the date that signifies the legality of the contract has taken place.
How long can an employee be on a temporary contract?
The maximum period for an employee to have a temporary contract usually varies from company or organization, but it is a general rule that a temporary contract must not extend beyond six months from their first day of work.
What are the benefits of having a temporary assignment contract?
For employers, having temporary assignment contracts is useful for them, especially if they need to hire employees on a whim. Some benefits include:
- When the employer hire a temporary replacement for an employee on leave
- For peak seasons, employers hire temporary workers to help with the workload increase that regular employees can no longer effectively manage
- If the company have different temporary projects to do and their employees won’t suffice to work on those projects, they hire temporary additional staff to help cover the projects
What rights does an employee have on a temporary contract?
The following rights a temporary employee has that they should exercise and the employer should respect:
- Entitled to a day off after a week’s work
- Only work to a maximum of 48 hours a week
- Entitled to leaves such as sick leave, maternity, or paternity leave
Once you’re done drafting the contract proposal, review it for any grammatical or spelling mistakes, the language and tone of the proposal, and the conciseness of its content. Revise it if needed. Encourage the employee to discuss the contract with you (make sure you’re open to answering their questions truthfully and openly) before you sign the contract. To help you get started making the contract, download our free sample templates above to use as your guide!
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