How to Write an Employment Agreement
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How to Write an Employment Agreement
Introduction
Many businesses have begun to utilize employment agreements to ensure accountability and retention among their staff. An employment agreement contains provisions for termination, specific job responsibilities and details about potential advancement or wage increases. Follow these steps to write an effective employment agreement.
Instructions
Difficulty: Moderately Easy
Steps
1
Step One
Formulate an employment agreement specific to your company with contract software. Companies like ContractEdge provide programs that create legal documents that possess as much or as little detail as you require (see Resources below). Invest in this software if you anticipate a large recruiting push in the near future.
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Step Two
Begin an employment agreement with the duration and end point of employment. For permanent employees, this section can simply include the first date of work and a provision for employment as long as the worker follows the remainder of the contract. Temporary employment agreements include a start and end date.
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Step Three
Provide details about the supply of wages and benefits in the agreement. These provisions should include when wages are paid and general benefits information that is applicable throughout your company. Attach an addendum with wage and benefit data specific to the employee.
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Step Four
Explain the various ways in which an employee can be terminated when you write an employment agreement. Termination due to gross negligence, excessive absence or other activities needs to be described in detail. Failure to include these provisions can lead to a wrongful termination lawsuit by a former employee.
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Step Five
Add details about health and safety guidelines that need to be followed by an employee. For example, airlines require pilots to undergo physicals on a regular basis to stay in the cockpit. Explain to employees that these provisions are important to employee safety and the maintenance of company insurance policies.
6
Step Six
Include requirements about certification and professional development when you write an employee agreement. Professionals in certain positions require additional licenses and advanced education over the course of their careers. By outlining professional development benchmarks in the employment agreement, you avoid confusion over these requirements in the future.
Overall Tips & Warnings
- Consult your legal staff or an attorney familiar with contracts before utilizing an employment agreement. A trained legal eye can determine if a contract includes discriminatory practices or possesses language too vague to be actionable. If you use a standardized employment agreement, the one-time legal fees are usually affordable.
Overall Things You'll Need
- Blank copies of employment agreement
- Writing utensil
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