All you need to know about employment contract template

An employee contract template can be used to formalize your employment agreement with a new employee.

Employee contracts contain details like hours of work, the rate of pay, the employee’s responsibilities, etc. In the event of a dispute or disagreement about the terms of employment, both parties can refer to the contract.

Workers are among the essential resources of any business. Often, they become productive when they know their interests are secured.

For that reason, as a business owner, you have an obligation to come up with an agreement that guides your working relationship with them, an employment agreement.

Below you will find all the essential facts you may need to know regarding these special document.

Types of contract of employment

There are three main types of employment contracts. They are permanent, fixed, and casual contracts. The contracts are further divided into three based on the form of agreement. They include:

  • Written agreements
  • Verbal/oral agreements
  • Implied agreements

1. Identify the drive for hiring

As a business owner, you need to know where you need an extra hand in your firm. This way, even the prospective candidates will understand what is expected of them when they are finally hired. You can also do a quick search on the internet on how other businesses have tackled it to get the inspiration.

2. Layout your job description

The job descriptions used for advertisement come handy here. Use them to identify the duties you missed out. Besides, you do not want to regret long after the contract has been sealed.

3. Outline your company policies 

Write down both the workplace and government rules you would love to be observed by the employee. Similarly, you can draft a non-disclosure agreement for the case of proprietary information. State the repercussions for disclosing such information.

4. Think through what ensues when a worker leaves/quits 

Obviously, a contract can end or be exterminated due to various circumstances. How would you want the employee to behave after leaving now that he/she knows a lot of secrets about your company? Will you allow them to work for a competitor? Well, you should be able to factor some of these aspects when designing a contract.

5. Seek legal advice 

What does the employment attorney think about your rules and regulations? He/she should advise you on what to do to make it perfect before you move to the actual drafting stage.

Fundamental elements

This is the second and most crucial phase in writing a job contract. Well, a standard employment agreement should entail the following components:

1. Create a simple title

Type a self-explanatory and straightforward title on top on the template. You are allowed to include the name of the firm in the title. For example, it can be Silicon Shakers’ Employment Contract.

2. Define the parties

This is the part that officially states the name of the firm and all the details of the employee, including their addresses. Remember, indicating the location of the business is necessary for this section. Similarly, outline the specific role(s) of an employer and the commencement date.

3. Benefits and considerations 

This part is essential for any contract. It states how the employee will be paid and other entitlements such as bonuses and overtime, among other types of compensation.

4. List terms and conditions 

Be clear on what you want the employer to abide by including dress code, sick days, vacation pay and other packages. Also, ensure your regulations are in line with those of the labour laws. This is the part that determines whether the employee will sign the agreement or not.

5. Be clear on the position and duties

Define the responsibilities of the worker. Typically, duties are outlined when advertising a position. List them again in the contract to avoid surprises from the staff. If they are many, you can attach them separately alongside other contract requirements.

6. State the length of the contract

Specify the period you want the agreement to hold. Otherwise, it may run forever, and you will not be in a position to exterminate it. Both the fixed-term employment contract template South Africa requirements are somewhat similar to those of part-time agreement. They have a field where you are supposed to indicate the length.

7. Confidentiality

Organizations have top secrets that should be shared within their premises. As a business owner, you have an obligation to protect such information in an instance, the contract expires or is exterminated. Employers should agree not to disclose such information once they leave. Otherwise, they must agree to suffer the consequences.

8. Disciplinary measures and dispute resolution

State how you would like to solve disputes if any. It can either be through arbitration/choice of law or negotiation. In case you decide to seek the intervention of an attorney, parties should agree on to share the costs.

9. Termination procedure

All templates, including the free basic employment contract template, should have a section that gives the procedure for termination. Make use of this section by defining the circumstances under which your working relationship can come to an end.

10. Staff reviews 

The performance review is an essential aspect of the growth and development of a company. Define the procedure for reviewing your workers. This will avoid unnecessary surprises from the part of the employer. Similarly, state the consequences of the evaluations to their benefits, especially bonuses.

11. Other clauses

Some business owners may consider adding other provisions to the agreement to make it robust. Some of the other clauses to add are probationary, non-solicitation, non-compete, failsafe among many others.

Finally, revise it in the presence of an attorney before declaring it official for use. In case of a problem, you can correct it together. Otherwise, you may suffer the consequences later before coming up with another new employment contract.

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