EMPLOYMENT CONTRACT

What is an employment contract?

The agreement between an employee and an employer is known as an employment contract. An employer specifies the terms of employment for new hires in this Contract. This contract clearly defines the terms of employment and rules of the workplace can serve as a reference guide in case of a disagreement. Employment contracts contain numerous dispute resolution clauses that help avoid prolonged legal disputes and the time and money they consume. It includes the recruit’s job title and responsibilities, compensation, hours, and more.

Why do you need an employment contract?
An employment contract is important for both employee and employer. Both parties are obliged to fulfil their obligations as a result.

How Employment contract protect your business?
 Basic contracts are a technique that encourages more corporate agreement. Contracts are particularly useful at preventing conflict and contractual issues in the future because they are a set of terms that parties have agreed upon. Well-drafted contracts provide you and your business many benefits such as: Clarity in business relationships, agreements, and rights of parties. Preventing misinterpretation of communications and agreements.

Ensure terms to include in an employment contract.
A standard employment contract contains information related to the employee’s job, such as theirposition, responsibilities, compensation, hours of work, vacation entitlements, workplace policies and so on. It is a binding understanding between the employer and employee that will govern the working relationship.
Need to include in an employment contract.

Job information

•  Job title
•  Job description
•  Team & department assignment
•  Role requirements
•  Skill requirements
•  Education requirements (if any)

Compensation and benefits
The compensation and benefits package will be one of the most crucial aspects when preparing an employment contract.

This package should include the following information:

•  Annual salary or hourly rate
•  Raises, bonuses, incentive opportunities
•  Health benefits (medical, dental, eye care, etc.)
•  Company stock options
•  Retirement plans (if any)
•  Signing bonuses
•  Group Insurance Policies
•  Other fringe benefits

Time off, sick days and vacation policy
While this might also be considered part of compensation and benefits, how employees accrue time off and ask for time away from work is important enough to cover within its own section of your contract.

Confidentiality, privacy, and responsibility
Every firm has trade secrets and client data that need to be protected, whether they are unique components or secret processes. Adding confidentiality agreements and non-compete agreements to your employment contract can go a long way in outlining these rules and regulations to employees as you are bringing them into the fold.

Termination, severance, and survival
A termination clause can limit an employee’s entitlement to termination pay from over 24 months to just eight weeks or anywhere in between.
Be sure to include a clause in your employment contract outlining the conditions under which either party may end the partnership, including the length of notice necessary and whether it must be in writing.
Be specific about how to end a connection with an employee and how much notice must be given before an employee is let go from a contract.
This might include offering severance packages or outplacement plans to help employees land on their feet.

Non-Solicitation Clause
A non-solicitation provision forbids employees from approaching or interacting with the employer’s clients for a predetermined amount of time in a particular locale.

Probationary Clause
A probationary clause gives the employer the right to terminate the employee without any notice or termination pay in case the employee is dismissed within three months.