What Is an Employment Contract?
An Employment Contract is a formal agreement prepared and signed by the employer and the employee to outline the job duties of the latter and responsibilities of the organization that hires the individual.
- Employee Contract;
- Employee Agreement.
It is important to have an enforceable tool that safeguards the interests of both parties - the employee can be sure they receive wages for their contribution to the company while the employer is able to manage the employee who may not meet the expectations the organization imposes on its workers.
Employment Contract Template Types
- Employment Contract Template. Make sure you and the employee clearly define the terms of the employment covering all the basics - the salary and the sick leave, the probation period and the non-compete clause. Besides, a properly drafted contract will help the employee avoid additional responsibilities that were not negotiated prior to signing;
- Temporary Employment Contract Template. If you want to hire a person for a particular project or you need a certain job performed for a brief amount of time, you should offer the prospective employee to sign this Contract of Employment -this agreement is often used to hire contractors and interns that help full-time employees with the workload.
Employment Contract Templates by State
Whether you are preparing to hire your first employee after opening a small business or you work on behalf of the large corporation offering employment and terminating agreements with employees for years, it is obligatory to know state regulations that relate to labor law. It is possible you hire a person that resides in a different state or open a new office in a different town - you have to follow the laws prescribed by the location. Therefore, a state-specific Employment Contract template will help you avoid disagreements with an employee over the application of the law.
At-Will Employment Vs Contract
Unlike traditional contractual employment which means the employer must have a reason to terminate the professional relationship with the employee, at-will employment is preferable for employers and risky for most employees - its main characteristic is the right of the employer to fire the employee for any reason at any time without any legal consequences. Besides, even a simple Employment Contract can be modified only with the mutual consent of the parties - at-will employment, on the other hand, gives the employer the opportunity to change the terms of employment without even notifying the employee. There are, however, benefits for the employee also - they cannot be fired for an illegal reason such as discrimination and they are free to quit their job any time they want.
What Should a Contract of Employment Include?
To be considered legally binding, a basic Employment Contract should contain the following elements:
- Names of the parties. Indicate the full name of the company and the full name of the hired individual.
- Purpose of the document. Illustrate the reason behind the contract - the employee renders their services in exchange for wages provided by the employer.
- Duration of employment. It is necessary to record the date the contract becomes effective and its end date. Alternatively, the employment can be indefinite - it is better to write that provision clearly and unambiguously.
- Description of the job duties. Devote two or three paragraphs outlining the obligations of the employee. It is advised to include the name of the supervisor the employee answers to as a rule.
- Work schedule and the rate of pay. You need to state how many hours and days the person will work, will they receive a fixed salary or they may be entitled to the commission, and describe potential overtime.
- Benefits and perks. This section mentions sick leave, insurance, vacation time, and other privileges available to the employee during their employment.
- Confidentiality clause. If the employee is granted access to proprietary data, the employer is within their rights to forbid its disclosure to third parties.
- Termination and cancellation. Record the procedures to follow and steps to take if either of the parties decides to end the working relationship.
- Signatures and the actual date of signing. Make sure both parties get a physical copy of the agreement.
When Should a Contract of Employment Be Issued?
Even though it is possible to hire a person without a formal agreement that elaborates on the rights and obligations of the employer and the employee, it is important to have a document that establishes the basic rules to follow in the course of the professional relationship. There should be a handwritten or typed contract offered by the human resources department employee to the new hire within 60 days of the start of employment. Generally, the papers are signed during the first week of employment or even before the first working hour - it protects both parties in the event of a dispute.
How to Get Out of an Employment Contract?
If you want to put an end to your Contract Employment before the agreement in question expires, here is what you may be able to do:
- Reread the terms and conditions of the agreement paying attention to the provisions about the cancellation or termination of the contract. There may be a clause that allows you to claim the agreement is invalid in the first place or you can discover a valid ground for termination without breaking an Employment Contract which often leads to lawsuits and damages.
- Negotiate with the employer - if you are not happy about the atmosphere in the workplace or you were promised a raise, promotion, or benefits yet did not receive them, you should ask when you can expect the fulfillment of written or verbal obligations.
- Find out whether you need to notify the employer about the termination days or weeks before - the timeframe is typically mentioned in the text of the agreement.
- If the employer is not willing to part ways with you, you should hire a mediator that will help you and your soon-to-be former boss find common ground without a trial.
Haven't found the template you're looking for? Take a look at the related templates below:
This legal contract is signed between a business and its employee in which the business is bound to provide the employee with work and pay them an agreed salary, while the employee is legally bound to work for the business on the terms stated in the agreement.
If you are an individual living in Georgia and you have secured a new job, you will most likely be required to sign this type of template with the individual or business that is hiring you.
If you are an individual living in New York and you have agreed to undertake a new job or position, this type of template can be used to help document and legalize the conditions and agreements formed between the employer and the employee.