Many job positions come with an employment contract that outlines each party’s responsibility to the other. Because these contracts are legally enforceable, they must be handled properly.
For the most part, employment contracts are used for salaried employees. Sometimes, those who are paid commission are also covered by an employment contract. If your company is hiring people who need an employment contract, consider these points.
Provisions to include in an employment contract
While the exact provisions that are included in an employment contract can vary considerably, there are some basic points that should be in each one. These help to ensure that the contract can be enforced by the court if it ever needs to be. These are the minimum terms that should be included in an employment contract.
- The parties who are part of the contract
- The date the contract begins
- Benefit and pay details for the position
- Details about the job duties
- Information about conduct during work hours
- Process for dispute resolution
- Circumstances that can lead to termination
Other terms might also be included in the contract. Things like non-disclosure agreements and non-compete clauses are common in some industries. It’s up to the business owners or administration to determine exactly what’s appropriate for a specific employment contract.
Making sure that employment contracts are in order is imperative because they protect both sides. Doing this can help to ensure that there aren’t any issues with enforcing the contract if it ever becomes necessary. Having experienced legal guidance is beneficial so your company doesn’t have to waste time trying to ensure that their contracts are legally enforceable.
