An Employment Contract comprises a signed agreement between a labor union or an employer with an individual employee. It establishes the responsibilities with structured terms and conditions for the company and the worker.

In the employee contract, you can review the number of hours, the type of work, the type of agreement, the payment, and other important details. In short, it is a legal binding between the laborer and the employee that contains information about the job responsibilities, hours, benefits, and wages along with the termination clauses.

What Is an Employment Contract?

An employee contract templatehighlights the working relationship between the employee and the company. It allows both the parties to understand the terms and the obligations of the employment.

Apart from the common factors that could go in the employment contract, it includes more of the work-related materials made by the employee. Plus, it also involves settling disputes at work. In addition, the employee agreement may even qualify the places where the employee cannot work after leaving the company. This helps the company to limit the competition.

What Does a Basic Employment Contract Template Include

The basic employment contract template includes many factors. A few of the most prominent ones are explained below.

Wages or salary: The employment contract will itemize the wage, salary, or commission that the parties have agreed upon.

Duration of employment: This is a crucial point to refer to while creating or signing any contract. The duration of the employment specifies the start and the end date of the employment. It is basically the length that the employee agrees to work for the organization. In some cases, this may be for a year, while others may have it only for a month. Sometimes, the minimum duration is also laid out where the employer adds a clause to extend the period.

Confidentiality: The work contract may either have a non-disclosure agreement attached to it or the employer may ask you to sign it separately. Along with the entire contract, read this section very carefully.

Schedule: Schedule refers to the number of hours and days the employee is expected to work for the company.

Communication: If the contract is related to any design or social media related, the company may keep the ownership of the communication you make on its behalf.

How to Create Standard Employee Contracts?

Here are the steps to create a standard employee contract.

  • Details of the employment: The employment details include rules, regulations, and employer policies that the employee will have to follow. It should also include the job description and the department or the team the employee will work with.
  • Position-related responsibilities: This section would broadly discuss the responsibilities, title, and employment role the employee has to manage during the contractual period.
  • Compensation package: Define the hourly rate or the yearly salary, including incentives, bonuses, or raises.
  • Vacation contract: Explain how the employee can take unpaid leaves, family emergencies, or sick days.
  • Employee benefits: Chalk out if the employer offers any employee benefits such as a compensation plan for eye, medical or dental care.
  • Probation period: Explain what is needed to be considered in the probation before the contract can be terminated.
  • Performance reviews: Express if honest feedback, punctuality, work, or employee performance can be considered monthly or quarterly reviews.
  • Termination: Next, put out the amount of notice each of the parties may have to provide before terminating the employment. This notice can rely on at-will or employment periods.
  • Non-Competition: Lastly, it is advisable to mention that the employee cannot directly or indirectly associate with any employer business.

Conclusion

Whether you are a large organization or a company just with 2 to 20 people, a basic employment contract makes it legit for you to hire the employee and offer him the job. The contract becomes the legit document that outlines the rules that both parties must adhere to. There are many work contract samples that can work as the best employment contract samples to simplify your work. Just go for the one that resonates your organization the best and tweak it as per your requirements.

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