Employment contract is an agreement between the employer and the employee and is legally binding.
Aspects that should be included in an employment contract
Personal details of the employee: This should include the employee’s full name, date of birth, address, and contact information.
Details of the business/employer: This should include the employer’s name, address, and contact information. It should also state the type of business and the industry in which it operates.
Job title/Position: This should clearly state the employee’s job title and position within the company.
Job description: This should provide a detailed description of the employee’s duties and responsibilities. It should also include information about the working conditions, such as the hours of work, the dress code, and the safety requirements.
Job specification: This should list the qualifications and experience required for the job. It may also include information about the employee’s willingness to travel or to work overtime.
Date of employment/commencement of employment: This should state the date on which the employee will start work.
Place where employee will spend most of his/her working time: This should state the location of the employee’s workplace.
Hours of work, e.g. normal time/overtime: This should state the number of hours that the employee is expected to work each week, as well as the overtime pay rate.
Remuneration, e.g. weekly or monthly pay: This should state the employee’s salary or wages, as well as any other forms of compensation, such as bonuses or commissions.
Benefits/Fringe benefits/Perks/Allowances: This should list all of the benefits that the employee is entitled to, such as health insurance, paid vacation, and retirement plans.
Leave, e.g. sick/maternity/annual/adoption leave: This should state the employee’s entitlement to sick leave, maternity leave, annual leave, and any other types of leave.
Employee deductions (compulsory/non-compulsory): This should list any deductions that will be made from the employee’s salary, such as taxes, insurance, and union dues.
Period of contract/Details of termination: This should state the length of the employment contract and the conditions under which the contract can be terminated.
Probation period: This should state the length of the employee’s probationary period and the conditions under which the employee can be terminated during this period.
Signatures of both the employer and employee: Both the employer and the employee should sign the employment contract to indicate their agreement to its terms.
List of documents that form part of the contract, e.g. appointment letter/code of conduct/ethics: This should list any other documents that form part of the employment contract, such as the employee’s appointment letter, the company’s code of conduct, or the company’s ethics policy.
Disciplinary policy, e.g. rules and disciplinary procedure for unacceptable behavior: This should state the company’s disciplinary policy, including the rules of conduct and the disciplinary procedures that will be followed for unacceptable behavior.
In addition to these aspects, an employment contract may also include other terms and conditions, such as the employee’s right to privacy, the company’s intellectual property rights, and the employee’s obligations in the event of a conflict of interest.
It is important to note that the specific terms and conditions of an employment contract will vary depending on the individual circumstances. However, the aspects listed above are some of the most common and important terms that should be included in any employment contract.