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An employment contract template is a pillar of internal business processes. It helps to make cooperation between employers and employees formal and long-term. A well-written employment contract should describe job responsibilities, dates when employment starts and/or ends, probation period information, benefits, etc.

Samuel J. Parkerson
Template by Samuel J. Parkerson

Table of Contents

Employment Contract

An employment contract is key in business relationships. When employers and employees are on the same page, this contract for work helps create a productive and harmonious workplace. Both sides are responsible for fulfilling their roles to keep a lasting and stable cooperation.

Whether you are hiring a new team member or updating existing contracts, a free employment contract template may become a great asset for multiple uses by HR departments.

When to Use an Employment Contract

Use an employee contract template anytime you hire someone on a full-time, part-time, or temporary basis. This document sample clearly lays out the job’s duties, responsibilities, and expectations, so there’s no confusion about how things work.

Also, a sample employment contract should address such topics as confidentiality, non-compete clauses, and intellectual property rights, especially in industries where proprietary information and competition are concerns.

Getting on the same page of the employer contract from the start cuts down the potential for disputes and helps protect the legal rights of the employee and employer.

Types of Employment Contracts

Understanding employment law is essential, especially when it comes to the different types of work agreement contracts. They are designed to suit varying business needs and role requirements. Here are the most common types of employment contracts:

  • Permanent employment contracts: These employment agreement templates are used for long-term positions, providing ongoing employment.
  • Fixed-term contracts: Appropriate for positions with a definite start and end date, typically used for seasonal work or a project with a predetermined duration.
  • Casual employment contracts: Ideal for temporary or sporadic work where there are no guaranteed hours of work.
  • Zero-hours contracts: These employment contract samples are necessary when employers are not obliged to provide a minimum number of working hours. The worker is only called in as and when needed.

Terms and Parties of Employment Contracts

Since employee contracts are the foundation of working relationships, the key parties and their roles are as follows:

  • Employer: The organization or individual who hires and pays for the labor of the employee. The employer must provide a safe and non-discriminatory work environment for the employee, adhering to local labor laws.
  • Employee: The individual engaged by the employer to perform specific tasks in exchange for compensation. After signing an employment contract, the employee agrees to comply with company policies and maintain confidentiality during the whole cooperation period. In some industries, where employees create means of intellectual property, they are owned by the employer within the whole course of employment.

The main terms of an employment contract cover various crucial details, including:

  • Job role: Detailed description of the position and responsibilities.
  • Working hours: The expected hours of work, including any potential overtime.
  • Compensation: The payment details for the job, including the amount and payment schedule.
  • Benefits: Any additional perks offered, such as health insurance, retirement plans, or bonuses.
  • Leave entitlements: Policies related to vacation, sick leave, and other types of time off.
  • Termination procedures: The process for ending the work contract, including notice periods and potential severance packages.

How to Create an Employment Contract

Crafting a legally binding work contract agreement is simple using our free templates. Just follow these key steps:

  • Identify the parties: Begin your work contract template by providing the names and contact details of the employer and employee.
  • Job description: Next, clearly describe the main responsibilities and employer expectations. You can also specify the probation period terms and requirements in your employee agreement template.
  • Working hours and compensation: Specify the wage details and daily working schedule, including overtime or bonuses, if these apply to your work contract template.
  • Company policies, benefits, and leave: Detail company policies, employee benefits, and leave terms, including vacation and sick leave provisions.
  • Termination: Clearly articulate the job termination conditions, setting out any notice periods or required documents.
  • Signing the job contract template: Finally, remember to provide space for both parties to sign and date the document, affirming their agreement with the stipulated terms.

By following these steps and using available resources, you can create a custom employment contract sample that fits your business and your team just right. Drafting legal document forms for personal use or work is not a complex or time-consuming task anymore. Free Juroform templates give you huge room to make a complete legal contract yourself and stay confident when solving urgent legal matters.