A contract of employment governs the relationship between employer and employee.
While it doesn’t have to be a written document, taking the time to put the terms of employment black on white can pay off down the road. A written employment contract provides clarity and protects you from situations that could spell trouble for your business.
Read on to discover four clauses that you should always include in an employment contract.
1. Defining the Basic Terms of the Agreement
You should always list the following basic information: a) the name of the employer; b) the name of the employee; c) the job title; d) the duration of the employment; e) the place and hours of work; and f) the starting date.
A lot of this information might seem obvious, but writing it out in simple language ensures that the employee fully understands and agrees to the basic conditions of employment. Writing down the starting date will also make it clear when the rights and duties of each party to the contract come into effect.
2. Setting Out Duties and Responsibilities
You should always set out in clear language the main duties and responsibilities the job entails. This will ensure that you and your new employee are both on the same page, and will avoid many potential arguments about what the position does or doesn’t involve. You cannot argue with what’s written down in plain English.
3. Salary and Benefits
Everyone wants to get paid, so setting out wages and benefits is a crucial aspect of any employment contract. Besides setting out the basic wage, frequency and method of payment, you should also list any other benefits – such as the number of paid holidays and insurance – that will form part of the employee’s compensation package
4. Termination
Thinking about firing someone isn’t fun, especially when your new employee hasn’t even started. Unfortunately, things can go wrong despite everyone’s best intentions. Setting out clear grounds for termination and severance terms at the outset can go a long way towards making the process as painless as possible should the need arise.
Do you need to draft an employment contract but aren’t sure where to start? Get in touch to set up an appointment with our employment specialists.