Employer Contract Features: How to Do It Properly?

An employer contract is a legal document that is used to set a standard for employees while they work for a company. It helps to reduce the employer’s exposure to labor liability risks. It must be signed by the employee and the employer. It defines the rights and responsibilities of both parties throughout the term of employment.

An employer contract can be indirect, verbal, or written. It involves a lengthy physical agreement signed by the employee. This document reflects the agreed terms and conditions once the employee has decided to pursue a particular position.

The Most Common Types of Employment Contracts

Source: workingfamilies.org.uk

There are several types of employment contracts. They depend on the type of vacancy to be filled by the employee. As a rule, the following types can be considered the most common ones:

  1. Open-ended agreement – it is used for employees who are paid a salary or hourly wage and work regular hours. This type can refer to full-time or part-time employment and is in effect until terminated by either party.
  2. Fixed-term agreement – it has a defined expiry date. Employees have the same rights as permanent employees.
  3. On-call employment agreement – it is used when employers cannot guarantee a regular schedule of work. The contract details the minimum number of hours that employees must work each week. It also specifies the payment arrangement.

As a rule, any job contract is drafted by the company through its legal counsel. However, in many cases, the individuals who hire an employee may also be involved in drafting the contracts.

Drafting an Employment Contract: How to Do It?

Source: dbblaw.com

Specific information about the position, period of employment, salary, benefits, and so on must be included in the document to avoid difficulties and misunderstandings between the employer and the employee. There are clauses that will be present in almost every employment contract. Therefore, it basically includes the following:

  1. Job Vacancy Information – this is where key information about the position is outlined.
  2. Pay and Benefits – it includes information about hourly, monthly or annual wages, raises or bonuses, additional incentives, and benefits.
  3. Type and periods of employment – it stipulates whether it is a full-time or part-time job, the number of hours per day or week, and the location of work.
  4. Vacation and Sick Leave – it features information about sick leaves, paid and unpaid leave, and what requirements are applicable to emergency situations.
  5. Confidentiality Policy – it is important to clarify what data cannot be disclosed by the employee in the case of access to the company’s confidential information.
  6. Procedure and rights in case of dismissal – this part stipulates the employer’s and the employee’s rights in case of dismissal. The dismissal notification period should also be clearly set. Should the employee be penalized or fired, the law requires the employer to follow the established disciplinary procedure.
  7. Other Paid Leaves – If an employee has a vacation, he or she is entitled to regular payment. This includes maternity leave, etc.
  8. Dispute settlement procedure – it is important to indicate that the dispute settlement process will take place in a court of law.
  9. Applicable legislation – it is important to mention the laws of the country or local laws that will be used to interpret the employment contract.
  10. Signatures – the contract must be signed by all parties in order to be valid.

Other items may also be added depending on the company’s activities.

Key Advantages of Drafting an Employment Contract

Source: scg.com.gh

A well-drafter work contract agreement offers the following advantages:

  1. Reducing the likelihood of one party going to court or having a dispute over work-related expectations and responsibilities. The employment contract is a legally binding document that the employer and employee agree to adhere to.
  2. Setting clear performance objectives for workers and the actions that will be taken if they fail to meet them.
  3. Saving the company money and time. The contract stipulates paid time off, as well as helps to set rules applicable to overtime work.
  4. Confidentiality. This clause in the contract prohibits employees from disclosing information that the employer defines as confidential.
  5. Legal protection of the employer and employee. If a dispute arises, both parties bear responsibility based on the rights and duties outlined in the contract.

The contract drafting process may take as long as it requires. There is no need to rush through such a document. Each clause should be written carefully, taking into account all the conditions and regulations.

The employer can be a large company or a private entrepreneur. It can also be a natural person. For example, such a contract can be used to hire a driver for the family or a nanny.

Once this document is signed, the employee is obliged to fulfill his or her duties. The employee has become part of the team and must follow the internal rules and policies of the company. For example, he or she cannot go on vacation whenever he or she wants or not show up for work without permission from the employer.

Tools for Employment Contract Generation

An employee contract template can be found on modern platforms. It can simplify the process of drafting and signing the document. One of such platforms is Pandadoc. The provided software facilitates and optimizes all the document workflows.

Documents can be shared in a matter of minutes. Moreover, it is possible to customize the templates that have been previously created. The platform can help users to protect their data. It also offers such a tool as an electronic signature, which makes documents legally binding.

You can easily download an employee agreement sample from this software. Furthermore, you can edit it according to the required terms and conditions. The available tools allow users to make necessary adjustments to the templates, thus generating the appropriate document for their business purposes.

There are also ready-made solutions that can be helpful in facilitating the document management process. The portal offers many useful features, including cloud-based data storage that ensures a high level of security.