employee contract template

Employee contract will define the rights and obligations of both employer and employee. Your employer should give you a written statement within two months of you starting work. The statement must contain certain terms and conditions. An employee contract template can help formulate a professional employee contract.

Employee Contract overview

There is always a contract between an employee and employer. You may not have anything in writing, but a contract will still exist. This is because your agreement to work for your employer and your employer’s agreement to pay you for your work forms a contract.

Employee contract terms have big impact on the rights and obligations of employment with company. Generally, you and your employer can agree to whatever terms you wish to be in the contract, but you cannot agree to a contractual term which gives you less rights than you have under law. You should also know that your employee contract have both express terms and implied terms. Express terms in an employment contract are those that are explicitly agreed between you and your employer and Implied terms are those which are not specifically agreed between the employer and employee

Employee Contract Template

Due to the various conditions and features of different company, you can built your own personalized employee contract template instead of using pre-defined standard employee contract template, there are some key information you need to consider when creating your own employee contract template.

The first key information in the employee contract template is about employment conditions. In this part, you need to define the terms of employment, the probation period, compensation and benefits. The probation period need to clearly stated, for example, in the employment contract, the term can be stated: the employer shall have an opportunity to assess the performance, attitude, skills of the employee during the probation period and both party may terminate the employment relationship at any time during the probation period without advance notice. The employment compensation need to include: salary, reimbursement and expense, life insurance premium, bonus compensation etc.

The second key area of employee contract template is employment duties and responsibilities and the termination of employment. In the section, the employer may state the reasons for the termination of employment and the conditions for the employee to leave the company, for example, the employee may terminate his employment at any time by providing the employer with advance notice of his intention to resign.

The last key area of employee contract template is restrictions and confidentiality. These terms are generally obligations for the employee to follow. The restrictive covenant usually states that the employee can not solicit or attempt to solicit the business of any client or customer of the employer for his own benefit or that of any third person or organization after a termination of employment with employer within a define period of time. The confidential clause may require the employee who may have access to the confidential information refrain from disclosing to other parties, especially competitors.