The Easiest Way To Make an Employment Agreement
Drafting an employment agreement may be a demanding task, especially if you don’t have any experience with legal documents. Having a lawyer draw up a contract in your stead seems like the best choice, but their service will undoubtedly cost you a pretty penny.
What Is an Employment Agreement?
An employment agreement, or a work contract, is a binding legal document signed by the employee and employer upon agreeing on the conditions.
The employment agreement should set the rules, rights, and responsibilities of both parties and include any specific items regarding unique hiring situations.
What Does the Standard Employment Agreement Cover?
A work contract is enforceable during the entire tenure of the employee. If you’re drawing up an agreement on your own, you should double-check what it must cover.
Take a look at the following table to see what clauses a standard employment agreement should include:
|Employment Agreement Clauses||What Does It Include?|
|Salary||The starting salary, potential bonuses, and payment methods|
|Working hours||Description of the working hours, breaks, and overtime policy|
|Benefits||Benefits granted by the employer, including health care insurance, retirement plan, paid vacations, and other benefits regarding the specific job. This section should also include sick leave and maternity leave policies|
|Probation period||Probationary employment usually lasts for three months, during which period each party has the right to terminate the contract without consequences|
|Work responsibilities||Description of the employee’s tasks, responsibilities, due dates, and other important information the employee should focus on|
|Protection of confidential information||The employee is prohibited from sharing the company's confidential information outside the workplace. The contract can also include a provision that prohibits the employee from switching jobs while under contract or working for a competitor firm for at least a year|
|Performance evaluation||Information about performance reviews—how frequent they are (once a month, every three months, or other) and what they entail|
|Termination||Details of employment termination, including how and when it can be done|
Types of Work Contract Agreements
There are different types of employment contracts, and the employer decides which type is the most suitable for the situation.
The most common employment agreements include:
- At-will contracts—the most often used employment agreements. This type of contract gives the employer the right to terminate the contract whenever they deem it necessary, while the employee holds the right to quit the job for any reason
- Written contracts—the most comprehensive contract types. They list all the information regarding the employee-employer relation, including rules, rights, regulations, and obligations. The contract allows termination in case the employee violates any of the terms
- Oral contracts—similar to at-will contracts, but they are not formally filed. Because of that, oral contracts are difficult to enforce
Why Are Employee Agreements Necessary?
The workplace is not the most laid-back environment, and it requires a set of rules to function properly. The employment agreement helps establish those rules and create a stable professional relationship between the employer and the employee.
To protect both parties, an employment agreement has to:
- Set up boundaries
- Regulate terms and conditions
- Leave space for terms negotiation
- Settle disputes
- Provide stability
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The Consequences of Breaching Your Employee Agreement
An employment agreement is a legally binding agreement between the employer and their employee. A contract breach happens if one of the parties that signed the contract breaks one of the terms—e.g., the employer doesn’t pay the wages, or the employee doesn’t work the hours agreed upon in the contract.
Regardless of the reason, when a breach of the employment agreement happens, the affected party should deal with the situation by:
- Involving a third party, like the Department of Labour
- Taking legal action by making a breach of contract claim in small claims court using DoNotPay
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