Features of Employment Contracts

4 Details to Include in Your Employment Contracts to Avoid Disputes

Employment contracts are complex, and it can be tough to get them right, especially when you’re hiring multiple staff members for different roles.

You will need to provide an employment contract for every person you hire, providing information on the employee’s wage, overtime pay, working hours, job responsibilities, employment period, and termination policy.

Sounds complicated, right? Don’t worry because this article should cover everything you need to include in an employment contract.

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What Should You Include in Your Employment Contracts?

Although the general details of employment contracts remain the same for most employees within a business, some terms and conditions can vary depending on an employee’s unique roles and responsibilities. Because of these minor differences, you will need to check every contract in great detail to avoid errors or loopholes.

If you’re unsure of anything or want help drafting and finalizing your employment contracts, contact an employment lawyer at HKM.com. Eliciting the help of an expert lawyer ensures your employment contract protects your rights and provides safe and fair working conditions for your employees.

Below is the basic information you should include in your employment contracts to keep your employees well-informed and build a healthy workplace environment.

1. Job title and description

It might sound obvious, but you must include the title of the relevant employee’s role in your employment contract. Whether you have multiple rules in your business or just one or two, you must clearly state the exact job title at the top of your employment contract.

Just below the job title, you should include a description of the job, encompassing the duties and responsibilities of this particular role. Feel free to use bullet points when describing job roles in your contract or summing the description up in a paragraph or two.

2. Wage and overtime pay

Next, you must include details about your employee’s pay in their contract. This includes their annual salary or hourly rate and payment for working overtime (the hours they work beyond the standard 40-hour workweek). Generally, employment contracts state annual earnings and hourly payments before state taxes.

Features of Employment Contracts

3. Paid leave and sick leave

Your employment contracts must state the amount of paid leave your employees are entitled to (holiday pay or annual leave) over a 12-month period. It should state the number of hours or days they can take and the hourly pay they will receive.

It must also detail the amount of sick leave and associated pay your employees can take in a specific period of time, and the escalation process if an employee has too many periods of sickness within this period. It’s a good idea to include details on how your employees report sickness in their employment contract, too.

4. Contract termination policy

Another key thing to include in your employment contracts is the termination policy. Your employees need to know about the process of terminating their contracts if they wish to do so. Include details about the procedure required for terminating a contract and the length of time an employee must work after handing in their notice.

Salman Zafar

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