Creating an employer contract is essential for both employers and employees. It establishes clear expectations, job roles, and responsibilities, reducing the risk of misunderstandings and disputes.
An employer contract stipulates the rights and obligations of the employer and the employee during the entire employment period.
After the employer offers a specialist a job and both parties sign the contract, they undertake to fulfill its terms and conditions. Usually, an employer contract contains the following clauses:
- general duties;
- duration of employment;
- salary;
- work schedule;
- benefits;
- confidentiality;
- noncompetition clause;
- termination details.
All employees must sign a contract with their employer. This document will ensure that employees follow the rules.
If the contract features clear provisions, the employer is also protected in cases of dismissal or wage disputes. This is a great alternative to any verbal agreement between two parties.
Signing Employer Contract: Why It Is Important
This document sets out the responsibilities and rights of both parties. It guarantees the employee’s position and protects the employer from all kinds of risks. In addition, a job contract is important for the following issues:
Income
Regardless of the number of hours an employee works, an employment contract helps determine the employee’s income and wage rate.
This reflects the agreement between the employer and the employee and the salary, leaving no room for misunderstanding. A fixed annual income, as well as various bonuses and benefits, can also be set.
Confidentiality for employers
Many positions give employees access to confidential information. Therefore, this clause should be outlined in the contract.
This will protect the company and the business. Should an employee violate this clause, the employer shall be entitled to take the matter to court.
Employee’s vacation
Everyone needs a leave from time to time. It could be sick leave, annual vacation, or possible maternity leave.
If the contract outlines information about vacation rights, it means that the actual vacation policy used by the company complies with all laws and regulations applicable to employment.
The document also clarifies any benefits that will be accrued to employees should they take time off work.
Once such important clauses are stipulated in the employment contract, the employee and the employer can be assured that there are no risks for both parties.
Drafting Employer Contract Correctly
Drafting a work contract agreement is an important process, so it is important to include all the necessary information. A typical contract should incorporate the following points:
Employment Information
This part should contain an agreement with the employer’s policies and regulations. Some of these details may involve the job description, and the team or department the employee will be working with.
Duties of the employee
In this paragraph, it is important to state the main duties that the candidate will be performing.
Salary
Information about the hourly rate or annual salary, raises and bonuses are specified here.
Leave policy. As a rule, this part features information about sick leaves, annual vacations, paid and unpaid leaves, and emergency situations.
Information on employee remuneration
Information about the probation period. It should be detailed what both parties should undertake during the probation period before they renew or terminate the agreement.
Performance
This includes consent to monthly and quarterly performance evaluations. It involves compiling a review of the employee’s performance, efficiency, punctuality, and feedback from other employees.
Termination terms
Here it is important to stipulate how the termination of cooperation will take place. Also, this clause includes the amount that should be paid as compensation under certain conditions associated with the termination of the employment relationship.
Company Protection Agreement
This clause prohibits the employee from engaging in activities that may be in competition with the employer’s business.
Other clauses should be entered according to the peculiarities of the company’s operation. Since each business entity may have its own specific requirements, they must be taken into account when the document is prepared.
Key Advantages of Employer Contract
There are benefits to signing a contract for both the employer and employee:
This is a legally binding document that the employer and employee agree upon. It reduces the likelihood that either party can take legal action.
The document enables employees to understand what is expected of them and what actions will be taken if they do not comply with the terms.
There is a part of the contract that deals with paid vacation, as well as a clause that regulates overtime payments. This helps the business save money.
If the company has confidential information, appropriate clauses can be added to prohibit employees from disclosing that information.
Employment contracts may look similar but include different terms and conditions. This depends on whether the employer hires employees on a permanent or temporary basis, for a full-time or part-time job.
Tools to Use
If you want to draft an employment agreement correctly, it is a good idea to use an employee agreement sample. This will help you avoid mistakes and incorporate all essential clauses into the document.
PandaDoc is an excellent platform for creating employment agreements. This is software that enables organizations to avoid time-consuming document management.
It automates all processes and accelerates the generation, management, and signing of digital documents.
The platform offers an employee contract template that can be downloaded and customized for free.
The process of document generation is simple and takes a little time with the help of such templates. This is a big advantage for companies where there is a continuous and heavy document flow.
The list of various tools in the software enables users to edit, and modify documents. А special storage can save all the necessary documentation.
You can log in to the platform and open the required document at any time. Confidentiality is ensured for all users since the platform has reliable encryption.
Only those users who have a password set by the owner can access the documents. Using this service, users can easily transfer documents to other employees and sign them.
