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Employment Contract Template

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Here is an Employment Contract Template that can facilitate the process of hiring an employee on a specific designation for a company. I have tried to include all possible terms and conditions that an employer and employee might be concerned about. Moreover, I have put them in sections so that it should be easier for anyone to quickly search and edit a section.

An employment contract is necessary for each company to protect the interests and benefits of the business. Employment contracts should be well written and fully address the important job duties of employees and expectations of the company with potential employees. It is necessary to write this contact in advance to avoid any misunderstanding that can be harmful in near future. Employment contracts are used to bind the loyalties and expertise of high-level employees. This contract is used to define the working relationship between employer and employee. It is an easy way for an employer to explain his/her expectations to employees regarding the job. It is an important document therefore it is necessary to write it in detail to avoid any future problems.

Here is a preview of this Employment Contract Template,

employment contract template

Elements of Employment Contract

Fundamental parts of the job should be clearly explained in the employment contracts. It is important to write your expectations with the potential employee so that the person can understand what to do and how much to do for your satisfaction. Do not forget to write about remunerations and benefits in the employment contract to increase the motivation level of a potential employee. The following are some important elements that should be defined in the employment contract:

  • Do not forget to write the duration of the job if you have any. If the job is limited to two or more years then it is important to define it in the contract.
  • The benefits of the employees are really important because it is the point that can increase the motivation level of potential employees. Do not forget to define everything in the contract like benefits that come with employment such as health insurance, vacations, sick leaves, disability leaves, incentives, bonuses, etc. to avoid any confusion in the future.
  • Do not forget to explain the grounds for termination so that the employee can be careful during the tenure of his/her job.
  • No complete or limited-compete clauses can limit your capability to take a similar post with the competitor so be careful about it.
  • After completing the employment contract, it is important to take the signatures of both parties to make it a legally enforceable contract. After signing the contract, all parties promise to uphold the terms and conditions of the contract. In case of any negligence about the terms and conditions or any breach of contract, another party can take necessary legal action against another party.

Tips to Write Employment Contract

  • It is important to write the names of all parties involved in the employment contract followed by the duration and renewable status of the employment contract.
  • Clearly describe the position such as job title, essential functions, and the responsibility of the employee. It is important to write a theoretical statement to explain your expectations to potential employees. It will help him/her to perform his/her duties according to your expectations.
  • You can write performance indicators that will help employees to develop his/her performance. Do not forget to explain the compensation plan of employees such as cash payments, medical allowance, travel allowance, pension contributions, insurance, etc.
  • Carefully draft all clauses of the contract with a penalty in case of violation or breach of contract. Do not forget to write the termination circumstances under which the contract will be automatically terminated.

Here is the download link,

download word template