FREE When Is an Employment Contract Necessary? [ Definition, Importance, Includes ]

Being accepted to your desired career position is a fulfilling moment. It only means that you have the right credentials and skills for the job. Before enjoying your first day of work, it’s important that your employer hands you an employment contract. Make sure the contract has the right contract essential elements.

Why Employment Contract Is Needed

Like any other contract such as payment contract, an employment contract is needed because it protects the rights of both employer and employee. Moreover, the contract is binding, thus no one can escape the consequences of one’s actions, once a provision is violated in the contract.

What Is an Employment Contract?

An employment contract is a legal document containing the rights and responsibilities of the employer and newly hired employee. It is a type of job contract that binds the two parties to uphold and respect the agreement in the contract.

When Is an Employment Contract Necessary?

An employment contract is necessary whenever a job applicant is newly hired in a company. The contract acts as a passage before the applicant becomes an employee and begin his/her assigned task and role in the company. A sample contract for employment is a teacher contract. This teacher contract is issued before an incoming teacher can formally teach students in a class setting.

Moreover, an employment contract is needed whenever work problems arise such as employer’s abuse of power, employee’s unexcused absences and late, and employee’s unproductiveness and low performance. With the aid of the employment contract, both parties can resolve such issues, since there are clauses in the contract that address actions when such predicaments arise. Without the contract, both employer and employee will have a hard time coming up with legal solutions to the unprecedented problems in the workplace. This is the reason why upholding and following the contract is of primary importance in the work scene.

Can You Change a Contract of Employment?

A contract of employment can be changed provided that the employer does the revision with a legal adviser. It’s best to revise the contract before a newly hired employee signs the contract. By the time an employee reads, agrees, and signs the employment contract, the contents containing the contract should be strictly followed. It’s not ideal to change any details on the contract, especially when an employee’s signature is already present in the contract.

What Should You Include in an Employment Contract?

• Task and Responsibility. The task and responsibilities an employee should do in the company are stated here.
• Salary. In exchange for the service rendered, an employee must be compensated justly.
• Benefits. The benefits an employee can receive from the company ranges from health to government benefits.
• Terms of Employment. The terms explain the duration of an employee’s stay in the company.
• Termination. The grounds and clauses for termination should be specified so the employee knows what actions to avoid.
• Confidentiality Clause. The employee must know that certain matters in the company such as meetings and work-related details need to be kept confidential and remain within the company premises.

 

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