An employee contract is something that a business owner needs to provide when recruiting employees. The employment contract needs to contain several elements that must be considered to avoid misunderstandings from both parties. Then, what are the elements that need to be included in the employment contract? Here's the explanation that can give you the answers!
A contract is an agreement between two or more people which creates an obligation to do or not to take some action. Contracts are usually executed by the competent parties in mutually beneficial agreements. The contract is a written document containing the consent of the parties, with terms and conditions.
An employee contract is an agreement between a worker and an employer that contains the terms of employment, rights, and obligations of the parties. The employment contract that we often know has standardized terms.
An employee contract at least must include:
A permanent employment agreement is a work agreement without a time limit. It means the period is until retirement age. In this type of work agreement generally, a company will do probation to the employee before signing the employment contract. The probationary period usually will be in three months. If the company wants to change the employee’s status to a permanent worker, then the company must renew the employment contract.
Temporary employment agreements only have a maximum term of two years. It can be extended seven days before the contract expires. Therefore, there are several types of work that need fixed-time employment agreements such as seasonal and freelance.
Generally, part-time workers have different working hours than full-time. Their working hours tend to be less and more flexible. The template of an employment contract for part-time workers is almost the same as full-time. The difference is the number of the working hours written in the contract.
Similar to the example of a work contract in general, the internship contract also has an agreement. Usually, this agreement only lasts as long as the worker does the internship at the company, which is from three to six months.
Writing an employee contract is somehow needs more effort as you have to aware of the local laws about employment terms and conditions in your current location. From now, you can download free contract templates from Loker Bali. Go have a look at our contract templates below!
Do you know that creating an employment contract for each newly hired employee has benefits for you and your employees? Here are a few reasons why you need to create an employment contract:
Who should sign the employee contract? Who has to be the first? Does it matter?
Well, legally there are no rules for who has to sign the contract first as long as both sides agree. However, the terms and conditions in your agreement could be different based on the type of employee you’re hiring.
There are a few things that you must consider before you sign the contract as a new employee:
The most important thing to write a document is to include the title of an employment contract so the person who reads or signs will understand. You can name the document “Employment Agreement” or “Employment Contract of [Your Company Name]”.
Employee contracts usually mention which parties are taking part in the contract. Pay attention when writing down the names of your business and the candidates you’re hiring.
Some of the terms and conditions for the employment contract are set by governments. It’s important to check your local laws about the terms and conditions regarding employment. Other terms and conditions not included in in-laws are up to you to decide such as benefits, uniforms, and other terms.
Employment contracts generally have specific contract terms such as effective date, type of employment, and so on.
After you’ve completed the draft of the employment contract, have a legal professional view the contract to make sure it’s in line with all related laws. You have to be concerned about this to protect your company from future legal action.
That is the explanation about employee contract from the meaning until tips on how to make it. If you are looking for templates for the Contract or CV go visit Loker Bali and download templates for free!