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Essential Employment Contracts: What to Include and Why They Matter

Essential Employment Contracts

Employment contracts are mandatory and set out the terms and conditions of a person’s employment. They specify the rights and responsibilities of the employer and employee, setting the expectations for both parties.

As an employer, formulating in-depth employment contracts can be complicated. There are so many factors to consider, and missing just one small piece of information could leave your contracts vulnerable to misinterpretation or breaches.

In this article, we’re going to cover the essential components of an employment contract so you can create accurate and error-free documentation for your employees.

Job Description

At the start of each employment contract, you must clearly state the job title and department of the relevant role. Following this should be a short and concise description of the job role, including the employee’s duties and responsibilities.

With a clear job description, you and your employee are on the same page. You can avoid disputes and difficulties and point to the contract if an employee refuses to do a task that falls within their job role.

Work Hours and Shift Patterns

You just outline the number of hours per week your employee is expected to work. You can also include details about shift patterns and work hours if this is something that you have both discussed before recruitment.

You may wish to include details about picking up overtime and the expected payment for working during unsociable hours.

Compensation and Benefits

Another key section in each of your employment contracts is employee compensation and benefits. Make sure to include details about the employee’s annual salary or hourly rate and payment schedule (such as weekly, biweekly, or monthly).

In this part of your contract, add information about paid leave and sick leave policies. Include details about additional employee benefits, such as healthcare packages and retirement plans.

Termination and Notice Period

Specify the notice period that you and your employee are required to provide when terminating the employment contract. Include details about the termination itself, including valid reasons for ending the contract and the process of doing so.

Hiring a Lawyer to Help with Your Employment Contracts

Because it’s so important to get employment contracts right, hiring professional help is often a lucrative choice.

An employment lawyer or contract lawyer can aid you in drafting, finalizing, and editing employment contracts to streamline the process. They will provide guidance about the required sections and details in your contracts and advise you on how to word things clearly and concisely.

With an employment lawyer by your side, you can ensure that your employment contracts are perfect. You can rest assured knowing that your contracts are free of errors and loopholes that could cause you issues further down the line.

Employment and contract lawyers can also advise you regarding terminating existing employment contracts. They know the legally fair reasons to end a contract and fire an employee and can support you through the claims process if necessary.

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