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7 Drafting errors in Employment Contract that needs to be fixed

7 Common Employment Contract Drafting Errors

Perfection is not attainable, but if we chase perfection we can catch excellence.

Are you wondering how this applies to the Employment Contract? Let us tell you that Free Employment Contract Templates are undoubtedly the easiest accessible. However, if you’re creating a job contract manually, you should ensure certain things. Here it is!


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7 Drafting errors in Employment Contract that needs to be fixed

1. Lacking Consideration

An employment contract should always have something in consideration. There should be some give and take mentioned to make the contract binding. Also, this consideration means different when the employee joins the firm for the first time and when his contract is renewed.


2. Misuse of fixed-term or fixed-task agreements

There are obvious reasons people say ‘don’t sign the employment contract without reading it thoroughly’.

All fixed-term employment agreement has certain limitations. It may also be jumbled words that confuse the reader with the intention it is written for. For instance, but you should also look for the following mentions in your job contract:

  • Maternity leave replacement
  • Special task employees
  • Time limits to avail benefits

Not only these details should be looked after, you should understand them well.


3. Absence of ‘out’ clause

When an employee hired for a fixed-term is dismissed suddenly, he/she may suffer from the damages they are entitled to receive if the contract is fulfilled.

This simply means that the conditions should be properly mentioned that what will be the consequences if the employee discontinues during the on-going contract period. Every provision should be mentioned well.


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4. Applying ‘Employment Standards Act, 2000’ on assumptions

While drafting the Employment Contract, you should have knowledge of at least basic laws and acts concerned with the same.

For instance, if the employee is terminated within the first three months of joining, no notice or compensation will be provided as per section 54 of the Act. This may make employees assume that the first three months of their employment is the probation period.

To stay assured that you abide by the law, know the laws of your state & act accordingly.


5. Termination Clauses

Many employers don’t mention any termination clauses in the Employment Contract. Some assume that the employees will follow the statute. Employees should know that the termination clauses are not enforceable.


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6. Lack of Compliance with Statutory Minimums

The entire Employment contract should have the norms of the firm but abide by the state laws too. Statutory minimum laws must be followed. No room for errors should be left because if an employee identifies them, they’re likely to raise a dispute.


7. Faulty Drafting

As we mentioned before, drafting should be clear-cut. From the gross pay to the considerations for the same should be mentioned. Also, the benefits, additional perks, etc. should be clarified. Any mistake here may cause trouble in the future.


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