Hiring new staff is one of the most important activities in a business. Bringing on the right people is key to a company’s success, and one of the most important documents to get in order when you’re hiring is the employment contract. This is because it clearly clarifies the relationship between the business and the new employee, and whilst they don’t need to be in writing to be legally valid, spelling them out on paper is better so there is no confusion in what is agreed. If you’ve never studied law before, this course is fantastic as it covers the main points of contract law in 60 minutes of training.
The main points an employment needs to cover is the basics of salary, working hours, and holidays. In addition, contracts also have many implied terms, and sometimes these are not be spelt out in writing. Sometimes this is because they are too obvious to mention (i.e. you will not steal from your employer), or they are necessary for the contract to work (i.e. you must have a driving license if you’ve been employed as a delivery driver). Often, terms of a contract can be established over time, based on the customs and practices within a company. The best position you can be in is to include everything that may be even possibly related, so there is no room for uncertainty if it becomes an issue. For start ups, you really should check out this course, and get a good understanding of the concepts every business owner needs to understand.
To save yourself from many misunderstandings, be thorough and spell out exactly what the contract covers. You need to be as clear and detailed as possible in the terms of your employment contracts. If you’re working with independent contractors, this recent post is a great example to what you need to prepare. But for a simple employment contract, follow our template and you’ll have your bases covered:
Company header (name, address, telephone number, contact, and date)
Employee details (name, address, telephone number)
Dear (employee name),
I am happy to confirm your appointment as (position title) with (company name). This document outlines the terms and conditions of your employment contract, and all the information relevant to your employment with (company name).
The contracts commencement date is (starting date)
Your previous employment with (previous employer) does count as part of your period of continuous employment which began on (date the period of continuous employment began).
Your previous employment does not count towards your period of continuous employment.
Your position is (job title), and will be based in (city), however the company employs the right to change this based on the needs of the company, after adequate consultation with yourself.
Your job duties include:
- List out all examples of the tasks,
- Example 1
- Example 2
- Example 3
- and so on…
You are required to perform your duties to the best of your ability at all times, using your best endeavors to promote and protect the interests of your employer, and follow all reasonable and lawful directions given to you by your employer. This includes complying with company policies and procedures, which are detailed in full in a separate document to this employment contract. You are expected to comply with the Company dress code.
You are required to work (insert hours) per week. You may be required to vary these hours if required for a temporary or permanent basis should the needs of the position require this. Payments for overtime are made on the following scale (insert details for overtime payments).
The salary for this position is (insert salary). This will be reviewed annually, based on performance to your key objectives. You are also eligible for the company bonus scheme, which is as follows (insert details for bonus scheme). In addition to your salary, you will also receive an allowance of:
- $$$ for company car
- $$$ for company phone
You will be paid (weekly/monthly) on (describe the day, such as the last working day of the month), by direct transfer to a bank of your choice.
The company’s leave policy entitles you to (insert number of days) per year, which are accrued. You will be paid your holidays at the rate of (insert details of holiday pay scheme). Holidays cannot be accrued across multiple years, and any leave still owing to the employee in the instance of termination will be paid at the standard rate.
You are required to give the company at least (number of weeks) weeks’ notice if you decide to terminate this employment contract. The company is required to give you (insert notification period) notice before terminating your contract.
The position is subject to the successful completion of a (number of months) month probationary period. Only at the end of this period, and its successful completion will your position be made permanent. During your probation, your employment may be terminated with (insert notice period) weeks’ notice at any time, by either party.
Disciplinary action is carried out in line with the company policy (insert details of disciplinary action, or provide access or a link to the document with this information).
You are required to notify your direct manager as soon as practically possible in the event you cannot work due to illness, and doctors certificates are required for employees that have taken more than one consecutive sick day.
Throughout the course of your employment, you may gain access to confidential information in both electronic or paper form. On no account should this information be divulged to an unauthorized person.
The company offers a pension scheme which covers (insert details of the pension scheme), however staff are also able to manage their own pension fund.
If you are in agreement with the terms above, and accept this offer of employment please sign both copies of this document, and return one copy to (insert contact at company name).
(insert contact at company name)
(insert company name)
Signed and accepted by:
(insert employee name)
If you’re new to hiring staff and don’t have a contract in place already, it may be beneficial to run through your finished version with a legal professional. They’ll be able to give advice on any areas you may have missed, and ensure you’re protected no matter what happens with your staff. If you have a spare hour before you meet them, try this course and you’ll definitely impress with the work you’ve done so far. The reason checking with a lawyer is great is that sometimes contract specifics like future trade clauses or non-competes are needed, and you need to ensure they’re setup correctly on day one.
Getting your employment contracts in order is critical once you start building your team. Once everyone knows where they stand, and there is no ambiguity, they are set for growth and achieving more. The trouble is keeping staff motivated, and without clear guidelines you’ll find it very difficult to keep them on track. Check out this course and learn the secrets of effective hiring, and once you find the right people start with an employment contract template and you’ll be off to a head start.
Get it right and you’ll have a fantastic team built in no time!