What are some tips for making an employee contract?


Quick Answer

Those writing employment contracts must ensure that clear obligations and expectations are set in areas such as compensation, benefits, scope of employment and termination, according to Forbes. A good employment contract agreement also includes provisions regarding post-employment activities and miscellaneous terms to address the comprehensiveness of the contract.

Continue Reading

Full Answer

Employers and employees must ensure that employment contracts include compensation information regarding signing bonuses, base salary increases within specified time periods, and any circumstances under which employees' salaries can be reduced, states Forbes. The benefits sections of employment contracts must include employees' eligibility for benefits, and they must lay out clearly which party bears responsibility for premium payments for any covered benefits such as health and medical coverage, life insurance and disability.

People writing and evaluating employment contracts must also ensure that scopes of employment are set clearly, including factors such as job titles, employees' responsibilities and potential for relocation, advises Forbes. They should also ensure that termination parameters are set, such as the grounds on which employees can be terminated, compensation in the event of termination, and whether employers continue to pay for benefits following terminations. Good employment contracts also make clear the circumstances under which terminated employees can recruit other company employees, and set the periods during which employees agree not to accept positions with competitors.

Learn more about Applying & Interviewing

Related Questions