Elements of Employment Contracts
What is an Employment Contract?
An employment contract can be defined as a document that dictates the professional relationship of an employer and employee which both an employer and employee sign. Basically, this kind of contract carries both merits and demerits. Therefore, if you are an employer, it is ideal that you’ re aware of the various factors to put into consideration when thinking about an employee contract.
What is included in Employment Contracts?
First and foremost, for an employment contract to be considered good, it must clearly spell out how the employer expects the employee to carry out his/ her tasks. The contract should also spell what the employee to expect from the employer. The following are some of the other terms that an employer can include in an employment contract;
*Terms relating to various responsibilities of a worker
*Sick day and vacation policies
*Benefits like disability, life or health insurance
*Assignment clauses which state any patent procured by employee
*Non- disclosure agreements that relate to the employer’s trade secrets
Pros of Making Use of Employee Contracts
#1: Provide an Employer the Ability of Hanging onto His/ Her Best Employees:-
This is often possible when an employer decides to add terms and conditions into the employment contract which limit the reasons that employees can use to leave his or her firm. For instance, if an employer has spent a considerable cash amount training an employee, he or she can lock the employee into a length of employment under the employee contract.
#2: Putting Confidentiality Clauses: –
When employees are learning, or working with the employer’s trade secrets, an employer is allowed to put confidentiality clauses into his or her employment contract. This can prevent employees from trying to disclose the employer’s trade secrets in the future.
#3: An Employer can Use the Contract to Hire the Best Employees: –
It is so obvious that an employer will most probably offer the best workers many different employment contracts. If this is the case, the employer can end up offering the workers the best deal thus making them end up cooperating with him or her.
Cons of Employers Using Employment Contracts
#1: The Contract Limits Employee’s Flexibility: –
Employment agreements limits employee’s agreement since the employees are normally made to adhere to the different terms and conditions imposed by the employer.
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