The 12 Important Details for Employment Contract Template
An employment contract template can be used to formalize your employment agreement with a new employee. employment contract template contain details like hours of work, the rate of pay, the employee’s responsibilities, etc. In the event of a dispute or disagreement about the terms of employment contract template, both parties can refer to the contract.
Below are the 12 important details for employment contract template
- Employment: The employment contract template agrees that he or she will faithfully and to the best of their ability to carry out the duties and responsibilities communicated to them by the Employer. The Employee shall comply with all company policies, rules and procedures at all times.
- Position: As a [job title], it is the duty of the Employee to perform all essential job functions and duties. From time to time, the Employer may also add other duties within the reasonable scope of the Employee’s work.
- Compensation: As compensation for the services provided, the Employee shall be paid a wage of $___________ [per hour/per annum] and will be subject to a(n) [quarterly/annual] performance review. All payments shall be subject to mandatory employment contract template deductions (State & Federal Taxes, Social Security, Medicare).
- Benefits: The Employee has the right to participate in any benefits plans offered by the Employer. The employer currently offers [list benefits, if any]. Access to these benefits will only be possible after the probationary period has passed.
- Probationary Period: It is understood that the first [time frame] of employment constitutes a probationary period. During this time, the Employee is not eligible for paid time off or other benefits. During this time, the Employer also exercises the right to terminate employment at any time without advanced notice.
- Paid Time Off: Following the probationary period, the Employee shall be eligible for the following paid time off: • [length of time for vacation] • [length of time for sick/personal days] • Bereavement leave may be granted if necessary.The employer reserves the right to modify any paid time off policies.
- Termination: It is the intention of both parties to form a long and mutually profitable relationship. However, this relationship may be terminated by either party at any time provided [length of time] written notice is delivered to the other party.The Employee agrees to return any Employer property upon termination.
- Non-Competition and Confidentiality: As an Employee, you will have access to confidential information that is the property of the Employer. You are not permitted to disclose this information outside of the Company.During your time of Employment with the Employer, you may not engage in any work for another Employer that is related to or in competition with the Company. You will fully disclose to your Employer any other Employment relationships that you have and you will be permitted to seek other employment provided that (a.) it does not detract from your ability to fulfill your duties, and (b.) you are not assisting another organization in competing with the employer.It is further acknowledged that upon termination of your employment, you will not solicit business from any of the Employer’s clients for a period of at least [time frame].
- Entirety: This contract represents the entire agreement between the two parties and supersedes any previous written or oral agreement. This agreement may be modified at any time, provided the written consent of both the Employer and the Employee.
- Legal Authorization: The Employee agree that he or she is fully authorized to work in [country name] and can provide proof of this with legal documentation. This documentation will be obtained by the Employer for legal records.
- Severability: The parties agree that if any portion of this contract is found to be void or unenforceable, it shall be struck from the record and the remaining provisions will retain their full force and effect.
- Jurisdiction: This contract shall be governed, interpreted, and construed in accordance with the laws of [state, province or territory].In witness and agreement whereof, the Employer has executed this contract with due process through the authorization of official company agents and with the consent of the Employee, given here in writing.
Company Official Signature
Also read: Employment Contract Information
An employment contract template is also known as a/an:
- Employment Agreement
- Contract of Employment
- Employee Contract
- Job Contract
What is an employment contract template?
An employment contract template is what employers and employees use to clearly outline the rights, responsibilities, and obligations of the parties during the work period.
It may include information about compensation (pay/wage), vacation time, the job description and duties, probationary periods, duties of confidentiality, termination procedures, and information about both the employee and employer.
Who needs an employment contract template?
employment contract template should be used by:
- Employers, HR (human resources) Managers, and Recruitment Officers who are preparing to enlist a new hire
- Employees/new hires/recruits whose employers do not use or have any type of job contract.
What are the different types of employment?
Employees are people who work for a business and who receive monetary compensation from the employer in return for their services. Since there are various types of employment, you will need to ensure that you are classifying your workers properly in any contracts that you create with them.
Employment types include:
Permanent Full Time: A permanent full time employee is someone who will be meeting the requirements for full time hours and who has no predetermined end date to his or her employment.
Permanent Part Time: A permanent part time employee is someone who will not be meeting the requirements for full time hours and who also has no predetermined end date to his or her employment.
Fixed Period or Term: An employee who is on a fixed period or fixed term employment has a prearranged end date to their employment. The contract automatically expires on the end date, and no notice is required from either party to end the employment at that time.
What are non-compete, non-solicitation, and confidentiality clauses?
Employers will often include non-compete, non-solicitation, and confidentiality clauses in their employment contract template. These clauses serve to protect the employer from many different circumstances that could otherwise cause the company to lose business, employees, and trade secrets.
Non-Compete (or Non-Competition): A non-compete clause keeps the employee from working for direct competitors of the business during and after their work relationship has ended. Non-compete clauses generally last for a certain amount of time post-termination, and must meet certain requirements to be enforced, such as being limited to a reasonable geographic location.
Non-Solicitation: A non-solicitation clause keeps the employee from encouraging other employees or customers/clients of the employer to move to another company or service provider. These clauses must also meet certain restrictions to be considered valid, and generally last for a predetermined amount of time (such as 2 or 3 years from the end of the employment relationship).
Confidentiality: A confidentiality clause keeps confidential work information private. It bars the employee (or former employee) from discussing or using company secrets, marketing plans, and product information without the express permission of the company.
Confidentiality clauses can either last indefinitely (until the information enters the public domain through a third party), or have an expiration date (for example, 2 years after the contract ends).
The clause that is include in your employment contract template must be fair and reasonable to both parties, as well as legal, to be considered enforceable in a court of law.
Also read: Employment Contract Template