10 Things every Employment Contract Template must have
Free Employment Contract Template is not a new thing for most of us these days as it is mostly used by businesses whenever an employee is hired.
Be it a startup or a well-settled business it is, the hiring process is formal and professional. The HR team is adopting some solid practices so that smart employees are hired and an Employment Contract, also known as Employment Agreement, is paid attention at because it protects the new-hire and business whenever a job offer is made.
As you’re about to learn more about the employment contract template, you may also like to read…
10 Critical Details on any Employment Contract Template
Whether you create a free employment contract template or get this legal document created by someone, make sure that the following details are included as a must:
The job title, the role of the employee and under which department he/she will serve along with the work of the employee is mentioned in this document. The performance evaluation criteria and the management to be reported by the employee are also specified.
Compensation and Benefits
If there are any additional benefits to be received by the employees along with the annual salary then it should be included in the employment agreement form. This can be appraisal details, bonuses or incentives, any medical allowances, fringe benefits, and so on.
Time off, Sick Days, and Vacation Policy
The time-off policy should be explained thoroughly along with the paid leaves per pay period. The company’s expectations regarding sick days, family emergencies and unpaid leaves are also required to be detailed. If an employee will be paid extra for working extra hours or at weekend events then it is to be mentioned.
The type of employee is detailed. For instance, whether they are hired on a contract basis or for a particular duration is required to be briefed as it is concerned with taxes later. When an employee is classified properly, it clears many doubts since the beginning itself.
You may like to make your employees fill out printable job application forms.
The schedule and employment period
The details regarding the employee-employer relationship whether it is for an ongoing term or a set term should be added to the document. If the firm provides any flexible working options other than the fixed working hours then it is also specified.
A non-disclosure agreement form can also be signed along with the employment contract so that the trade secret and client data is protected. Sometimes, it is signed as a separate document while sometimes the essential details are included in the employment agreement itself.
If you want to prohibit the use of social media or smartphones during working hours then it should be mentioned in the agreement. Also, you may add details regarding the usage of personal social media profiles on company property or the actions that may be taken if the employee says negative about the firm.
Terms and conditions of Termination
The terms and conditions of terminating the contract from either end are to be briefed. If the employee wishes to leave then the minimum notice period is to be provided.
Severance or Outplacement Plan Information
You may think like it’s too early to think about this but a positive employer brand image should be maintained. Even if it is you or your employee who decides to part ways, an outplacement plan or severance offering should be well-planned.
If the firm wants to impose certain restrictions on the employee after leaving the organization like they may not work in the locale after leaving the job after a particular time interval then this legal document template should detail this. Would you like to check out the Employment Agreement Sample now!