Find out the sample and contents of an employee contract agreement.
An employment contract specifies the responsibilities and rights of the employer and employee. They contain information about employee duties, compensation, procedures for termination, vacation time, and sick leave among others.
Contents of an employee contract agreement
Details of the employee and employer. These are their names and addresses.
Date. It is when the contract takes effect.
Job description. The position and duties of the employee are stated here.
Compensation. This section informs about the amount that the employee is to be paid, whether wages or per hour basis, review of the said payment and expenses reimbursement.
Benefits and vacation. Here the contract stipulates the benefits and vacation an employee is entitled to.
Termination of employment. The section bears the terms under which the employment can be terminated either by employee or employer.
Clauses. An employee contract can have other clauses such as the non-competition clause prohibiting the employee from engaging in any competitive business after termination, severability, independent legal advice
Signature of employee and witness. The signatures of the employee and a company representative and the date appear here.
Sample employee contract
Employment agreement between (employer) and (employee).
In good consideration, the parties agree as follows.
Date. This agreement will take effect on […] which is considered the date the employee commences the employment.
Job description. The employee’s job title will be […]. The employee is expected to perform the following duties:
- The employee shall be paid a salary of […] per year on regular payment periods.
- The employee is entitled to a commission of […]
- The payments are subject to statutory deductions.
- The mentioned salary shall be reviewed annually.
- All authorized expenses incurred in the course of work shall be reimbursed provided they are accompanied by receipts.
Benefits. The employee will be provided with the currently available health plan and other benefits as the law requires as stipulated in the employee handbook and policy documents.
Vacation. The employee is entitled to x weeks of paid vacation per year.
Termination of employment.
- With a just cause, the company may terminate this contract without payment or notice.
- The company may terminate the contract without showing a just cause provided the company pays the employee the amount stipulated by the Employment Act in lieu of notice or upon x weeks written notice.
- The employee may terminate employment without a just cause by providing the employer with x weeks written notice or as required by law.
- The company and employee agree that the sufficient notice to terminate employment is x weeks or the minimum legal requirement.
Non competition. Upon termination, the employee shall not engage in similar business, or solicit business from our present clients. The employee shall not try to hire any of the current employees.
Signed on […]
Employee Name […]
Company Rep Name […]