Work contracts, to both employers and employees, provide the security and benefits that they need from each other during the employment period. While it is a company policy to provide new onboarding employees with an employment contract regardless of their status, it remains an issue that some companies do not offer this, especially if they are operating shadily. As employers, it is also your responsibility to discuss the terms and conditions with the employee so that they know what to expect and what your obligations are to them. In this article, we will talk about work contracts and what should be included in them. 

Work contracts, to both employers and employees, provide the security and benefits that they need from each other during the employment period. While it is a company policy to provide new onboarding employees with an employment contract regardless of their status, it remains an issue that some companies do not offer this, especially if they are operating shadily. As employers, it is also your responsibility to discuss the terms and conditions with the employee so that they know what to expect and what your obligations are to them. In this article, we will talk about work contracts and what should be included in them. 

10+ Work Contract Samples

1. Work Contract Service

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2. Work Contract in GST

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3. Treatment of Work Contract

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4. General Conditions for Works Contract

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5. Note on Work Contract Service

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6. Employment Work Contract

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7. Work Contract Assessment

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8. Work Contract of Employment Form

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9. Conditions for Work Contract

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10. Work Contract Example

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11. Small Construction Work Contract

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What Is a Work Contract?

A work contract also called formally an employment contract, is a legally binding document that is both signed by an employer and their employees. It is an important document in the labor field as it states the rights, obligations, and benefits of both parties. Employment contracts indicate the terms and conditions set by the employer which are also based on company policy. Failure to honor a work contract by any contracting parties is bound to litigation and fines by any labor laws around the world. 

What to Write In a Work Contract?

Inside a work contract are various sections that talk about the job description, work schedule, salary, holidays, and other relevant information that are highly important to both parties. Further in this article are some of the components which you will need to incorporate into the contract. Take this into account when you start drafting your document. 

1. Job Description

The first section of the contract should talk about the job description of the employee. Here, the employer should state the scope of work that the employee is expected to perform. If there are other additional roles and responsibilities that are expected of them which might not be a part of their job, i.e., special tasks or project management, then you should also write them down. 

2. Work Schedule

Another section that you can find in the contract is the work schedule. State the days of the week the employee will work in the field or in the office. If they are part-timers, you can state therein their shift schedule such as the designated hours per day and how many days a week they are needed to work. 

3. Salary and Benefits

The next section will be about salary and benefits. Here is where you will state how much salary the employee will receive. If there are any employee benefits, such as social security contributions, medicare, food allowances, fare or gas allowance, and other government benefits the employee is entitled to upon employment, then write it in detail. 

4. Absences and Leaves

If you require the employee to be present at all times and to report to work on days required, then tell them so what the penalties would be if they fail to appear during their shift. If they have to be absent from work due to sickness and other problems that needed their immediate attention, then tell them the methods of sending absent notices. Likewise, if they are entitled to vacation leaves and sick leaves, indicate that in writing including how many days of leave are allowed per employee. 

5. Use of Equipment

If the company lends out its resources to employees so that they can perform their duties, write down the rules regarding the use and storage of such equipment. You should also include the policy regarding lost and damaged items and how the employee should compensate for them. If the employee wishes to resign from the company, they should also return the same within the specified time. 

What is a non-compete agreement in the contract?

A non-compete agreement is a clause stating that the employer restricts the employee from working in the same industry for a number of months after resignation. This type of agreement is also called a restrictive covenant or clause as its definition implies.

What is meant by a non-disclosure agreement?

A non-disclosure agreement is a legally binding contract between employer and employee that disallows them to share any confidential information in regards to the nature of their business. Non-disclosure may also imply that employees should not speak about other information such as salary offers to an outsider.

What is a breach of contract?

Breach of contract happens when one of the parties fails to perform their obligations towards the agreement. If that is the case, a civil lawsuit may happen and one had to pay for the damages for breach of contract.

A work contract ensures that both parties, employers, and employees, know each other’s obligations and will help set their expectations clearly to foster good relations. Contracts are also proof for businesses that they are indeed operating in good faith. Make your own work contract today by downloading our editable templates which you can find in this article. 

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