Are you planning to add a new face to your business? Whether you’re starting a new business or an employee recently resigned, you’re most likely looking forward to signing the shiny new employment contract. However, before signing the contract, you need to think about the protections it offers all parties.
Outlined below are some important factors to keep in mind.
The job role
A good employment contract should contain basic information that defines its roles and responsibilities. This may include:
- The scope of the position
- The sort of tasks to be completed and the skills required
- Who employees employees report to
Parties to the contract
Every contract should include the names and addresses of all the parties involved. In addition, it may include a description of the business
Salary and other benefits
Another important component of a good employment contract is compensation and benefits. This means that your contract should include the following:
- How much do employees get paid
- 4O1k or other retirement/ investment plans
- Whether employees are paid by the hour or they will receive a monthly salary
- Bonuses
- Other perks that come with the job, such as health care, gym membership or dental coverage
Benefits can also include things that aren’t monetary, such as work-from-home days.
Confidentiality or non-disclosure agreements (NDA)
For any business to grow and thrive, it must protect sensitive information like client data, trade secrets, intellectual property, and other vital business data. Therefore, employees need to know what they can and can’t share outside of work. While confidentiality agreements and NDAs can be signed separately, they can also be included in the employment contract.
Although every good employment contract should include the above basic elements, there are plenty of other things that your contract can include depending on your business type. Consider seeking legal assistance to ensure you draft beneficial contracts in the day-to-day running of the company.