Employment Agreement Template

After a job candidate accepts a job offer, employers must draw up an employment contract that describes everyone’s obligations, rights and responsibilities as long as a relationship exists between employee and employer. With a proper contract, all parties understand their relationship and how to maintain it. General items that appear on most contracts include addresses and names of worker and employer, salary, salary schedule, job responsibilities and requirements, benefits, time off, job title and a confidentiality clause.

One major factor that determines what belongs on a contract is employment type. Permanent full-time employment means the worker meets the state’s full-time status requirements and does not have a predetermined employment end date. Permanent part-time employment workers work part time and do not have a predetermined employment end date. Fixed-term and fixed-period employment means that an employee has a predetermined employment end date. Also, neither party bears an obligation to give notice to end employment under fixed-term or -period employment.

Another employment classification is “contract employee.” This means a company hires a person for a specific project, but the business relationship and contract end along with the project. Contract employees receive a specific wage as long as they uphold their end of the agreement. Examples of contract employees include copywriters, landscapers, consultants and graphic artists.

Employment contracts help ensure employer and employee remain on the same page regarding job responsibilities, wages, employer/employee rights and benefits that companies offer. Even if a new hire understands her or his job duties and salary, an employer may create an employment agreement that includes a confidentiality agreement to protect company secrets or sensitive information. Employers who bring on interns or temporary employees should have them sign an agreement so everyone understands the nature of employment and how long the internship or temporary position lasts. Because oral agreements do not offer the same legal protections as written contracts, employers should use employment contracts that reiterate all terms and details of an oral agreement.

Without a proper employment agreement, workers and companies may have differing opinions about an employee’s job title and responsibilities, which can lead to confusion, frustration and potential legal action. Besides defining job roles, employment contracts also offer all parties legal protection under state employment law. For instance, contracts may explain how to resolve disputes, a specification that can save a lot of time and money. If over time, parties feel that an existing contract no longer serves them, they can renegotiate and sign a new agreement. Without a written contract, employers and employees may have no choice but to handle disputes in court, which could prove expensive and time-consuming.

The contents of an employment contract depend on the specific employment type. Some of the most common elements of an agreement include:

• Wage Information: The contact should note if a worker receives a salary or an hourly wage. This is also the section of the agreement to include commission information and how often employees receive payment.
• Non-disclosure or Confidentiality Agreement: Employers should note company information that they classify as confidential, such as designs, products, inventions, pricing, client lists, and trade secrets. Contracts that include a confidentiality or non-disclosure agreement often note how long the agreement lasts.
• Benefits: Jobs with benefits and perks require a rundown of dental, health and vision insurance. Other examples of benefits include disability and life insurance. Benefits sections also include whether workers receive paid time off, vacation time or personal days.
• Termination and At-will Employment: If a person is an at-will employee, the employment contract should explain whether the employer must offer a reason for terminating the employee. Companies may also wish to explain their termination policy, including how and whether terminated employees must return company property.
• Good Faith/Best Efforts Clause: Companies may expect employees to perform to their highest ability at all times. This section of the contract may detail a business’s severance package.
• Conflict of Interest/Non-Compete: Some businesses and employers do not want workers engaging in work that may lead to conflict. For instance, a coffee shop may not want baristas lending their talents to competitors.

1 What is a Employment Contract?

2 What is a Employment Contract used for?

3 Why should you use a Employment Contract?

4 How to write a Employment Contract?

5 How to fill out a Employment Contract with PDFSimpli in five steps?

6 Employment Contract frequently asked questions

6.1 What is a probationary period?

6.2 What is the difference between an independent contractor and an employee?

6.3 What is a non-solicitation clause?