The employment contract needs to benefit both the employer and the employee. It helps to clarify the rights and obligations of the two parties. An employer can follow these best practices outlined below to make sure they are creating well-defined contracts using an automatic contract maker.
It is important that the person reviewing or expected to sign the contract knows what they are looking at. Ensure your simple contract template includes the name of the company in the title for clarity as well as branding purposes.
Include a clause that identifies who is entering an employment contract. The full name of the employee should be used as well as the registered name of the organization offering the contract.
The labor laws of a country or state will dictate some of the terms and conditions stated in this section. These may include work hours, benefits, and severance packages. Be sure about the jurisdiction laws as you write this section. It is also possible to include in-house terms such as dress code and other policies as long as they do not go against labor laws.
Clearly outline the responsibilities of the employee when you create the contract so that there is no doubt about what is expected of them and they can determine if they can live up to what is expected of them. It is best to start with the responsibilities that require the most attention or even provide percentages to let them know how much attention needs to be paid to certain duties.
The new hire needs to know what will be reflected on their paycheck before payday. Clearly provide details of their compensation and any deductions that might be made. Details to include here are:
To avoid unnecessary court proceedings, include procedures to resolve disputes that may arise. This saves time and preserves relationships between employers and employees.
Let the new hire know what to look forward to when they sign the contract. The agreement should not only be beneficial to the employer. Many companies are looking to hire skilled persons and to edge out the competition, add incentives to the contract so that it is your contract that gets accepted.
Even though you intend to have them sign an NDA, it is important to let the employees know that company secrets should not be shared with outsiders. A brief clause about this with description of what may be considered confidential will suffice. A more detailed NDA document can be attached to the agreement if there is need for the employee to sign one.
Unless you are hiring a lawyer, it is best to leave out legalese language and stick to conventional employment terms that will not create ambiguity when interpreting the contract. If the contract ever ends up in front of a judge, it should be evident that the author made every effort to ensure it can be understood.
Do not include clauses that can be unfair to the employee. Non-compete clauses may not be necessary at times. For example, you cannot ask employees at a restaurant never to work for a competitor. Unfair clauses will deter employees from taking on the employment.
Do not give the employee a contract to sign on the same day they are expected to start work. A week or two should be given for them to read through, consult a lawyer about all the clauses and then they can sign it. This means you should be able to create contracts fast and send them to the new hire in time.
Not every company can afford legal counsel to draft employee contracts every time they make a new hire. For this reason, it is advisable to create templates for different contracts and these can be used whenever you need to hire a new employee. Templates will get the work done faster and will avoid errors. More companies today are adopting document automation as a best practice for creating different documents.
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