Employment contracts are invaluable tools that help prevent issues with workers. They can be used to outline job duties, wage information, termination rights and more.
As you create an employment contract, there are certain things you should include to help prevent issues down the road.
Services and expectations
The employment contract should outline what is expected of the worker. This includes the days and hours they work along with their duties. Be sure to be as detailed as possible and don’t leave anything out.
Wage information
Make sure all the information about wages and other forms of compensation is outlined carefully in the employment contract. This can eliminate any confusion about what an employee is due.
Termination rights
It’s important to detail how each party can terminate the working relationship and the rights they have when this is done. This should include the amount of notice required or expected, along with severance agreements (when applicable).
Dispute resolution
Even with a well-written, detailed employment contract, disputes may arise. If a dispute happens, there should be a section in the contract that explains how it should be handled. For most, arbitration is the best option. Whatever dispute resolution option you choose, be sure it is listed and explained in this section of an employment contract.
Avoiding issues with an employment contract
Employment contracts are invaluable tools that can help ensure everyone knows their rights and responsibilities in the course of a person’s employment. While an employment contract will not prevent all issues, it is a tool that is at your disposal and that should be used to help prevent these types of situations.