How To Create The Perfect Employment Contract
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How to Create The Perfect Employment Contract

by John Moran — 2 years ago in Review 2 min. read
2217

An employment contract, sometimes known as an employment agreement, is a legal requirement.

Every employer must provide a document that entails an employee’s roles, responsibilities, and rights within the first two months of their employment. This applies to hiring freelancers, or full-time and part-time workers.

The main aim of an employment contract is to convey very specific information about the employment so that both the employer and the worker are on the same page.

Employers must get their contracts right. Contracts that contain missing information or loopholes are prone to misunderstanding and abuse, and this can lead to a vast array of problems.

For example, if an employer spots a loophole, they may take advantage of it in several ways. They may demand higher pay, refuse to do certain aspects of their work or even take legal action against you.

Also read: How to Start An E-commerce Business From Scratch in 2021

Hiring a Lawyer

Contract signing is a key part of the hiring process. As quick and easy as it seems when your new employees are signing the dotted line, creating the perfect contract can be a lengthy task.

For most employers, hiring either an employment lawyer or a contract lawyer is necessary to make the contract creation process as seamless as possible. Many business owners simply don’t have time to sit and create a contract, so they choose to outsource this task to the experts.

Employment and contract discrimination attorneys can work alongside you to formulate the perfect contract for your employees to sign when they join your company. You may need more than one type of contract and this is something that your lawyer can discuss with you.

Attorneys who are legally trained in employment law will know exactly what to put in your new contract. They can also search for any potentially weak areas in your existing contract that are open targets for abuse.



What to Put in an Employment Contract

Even if you choose to hire a lawyer to help you out with your contract creation, it’s important to learn what the process entails yourself.

  • Generally – An employment contract should contain details about: Basic information about the job – more
  • Specifically – The job title and department, and the name of the line manager
  • Employment period -Permanent or temporary and hours (full-time or part-time)
  • Probationary period – The length of the probation and how long the notice period is during this time
  • Hourly pay or annual salary – usually, the contract will state the earnings before taxes
  • Benefits and bonuses – This is optional, depending on whether you offer additional work benefits for your employees
  • Paid leave entitlement – How many days of paid leave per year the employee is entitled to
  • Sick pay – How many days of paid sick leave the employee can take each year
  • Job roles and responsibilities – This should be as extensive as necessary to make it clear to the employer what their job will entail
  • Details about termination – This may include whether or not written notice is necessary and the length of notice that is required
  • Pension payments – Necessary details about voluntary retirement and your pension scheme
John Moran

John Moran is an American who enjoys the fine art of living well. His interests include anything wine, food or nature related especially when enjoyed with friends and family.

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