An Employment Contract is a contract of employment for an employee of your business. It sets out clear expectations for both you and your employee and lays the foundation for a mutually rewarding relationship.
An Employment Contract is a document designed to regulate the relationship between an employer and an employee. It lays out key information about the employee's work, including important areas such as pay, benefits, hours, holidays, sickness, termination, and confidentiality. It gives the employee and employer contractual responsibilities and allows either side to take legal action if the other side breaches the contract.
Most businesses employ staff at some stage. If your business employs people, or if you're thinking about employing people, you are legally required to enter into a written employment contract.
Some matters to include in an Employment Contract seem fairly straightforward, such as the hours an employee will work, holiday entitlement, and pay. But will they receive overtime pay or a bonus? Do you want there to be a trial period during which you can monitor the new employee's performance, and, if necessary, dismiss them from the role? How can the relationship come to an end? How much notice does the employee have to give to terminate their employment?
A well-drafted Employment Contract is consistent with the current law and lets both sides know exactly where they stand. Your employee knows what to expect and you are protected in case the relationship doesn't work out.
When drafting an Employment Contract, it is important to focus on a number of key clauses, in particular:
For senior employees, it's also worth including the following: