HR Essentials Series: Part 2: Policies and Procedures: Employment: Contracts
Employment contracts and policies mitigate risk, formalize the employer-employee relationship as well as clearly define and outline the rules of engagement. As an employer, this is your point of reference in the event there is any ambiguity or conflict.
A well written employment contract includes the following:
- A clearly defined role description
- A clear outline of the length or terms of employment
- Performance requirements and expectations
- Confidentiality, Non-Disclosure and Non-Compete clauses
- Compensation components with eligibility and payout schedule
- Outline of benefits with eligibility and restrictions (if any)
- Termination of employment
Important points to note:
* All employment contracts require an offer, acceptance and consideration. Many employers often forget about consideration.
*An industry best practice is to have all employment contracts signed prior to the employee start date. We strongly recommend this where possible to mitigate risk and deliver a seamless onboarding experience.
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