An employment contract is a legal document that defines the terms of employment. It is usually in written form and outlines any rights and responsibilities between parties involved. It is believed to have originated from the master-servant law which was in place before the 20th century. Anyone starting off in business should realize the importance of this contract in maintaining harmony in the workplace. The tips discussed below will outline how to write the first contract.

Title

An employment contract should always have a title. The title makes it easy for people to identify it. You can just title it, “Employment Contract.”

Parties Identification

An employment contract is an agreement between the employee and the employer. Therefore, it is necessary to include the title of the company and identify the name of the employee.

State the Position Title

Go into detail about the responsibilities and duties the employee is required to perform. This can help eliminate any confusion on the employee’s side.

Compensation

Employers are required by law to offer compensation to their employees. The contract must detail the amount set aside for this task and the duration. Taxes, Medicare, and social security are examples of compensation. It is also essential to make the employee aware of how compensation is calculated to eliminate any confusion.

Outline the Benefits

The employee is supposed to give their services to the employer. On the other hand, the employer is also supposed to give something in return. The employee should receive company benefits, and the contract should outline the timeframe of when the benefits will begin taking effect.

Specify How Long the Contract is Valid

Some employers draw their contracts to suit the entire period the employee will be working with them. However, some may prefer that the agreement is adapted for a specified period. Therefore, it is essential to put the time into writing.

Include Details about Paid Time Off

The contract should include details about any paid vacations and the duration. Add information about a sick leave and the period and amount payable. The agreement should talk about when it is acceptable to take a work leave and the number of days.

Specify the State Law

Define which state controls the law in your contract.

Conclusion

An employment contract is crucial if you want to avoid any future issues. Ensure that you also include a harassment clause in the contract. This provision will help protect employees from any form of workplace harassment. Ensure that both parties sign at the end. According to Weisblatt Law, “Every contract provision should be drafted in a way that is as favorable to your business as possible and you should ensure that no terms or conditions are unfair to your business.”