What is Employment Contract Drafting?
An employment contract is a legally binding document that’s signed by an employer and employee. It outlines key aspects of how their working relationship will be handled, such as the employee’s job responsibilities, salary, and working hours.
It has to be legal and protect both parties, which is why special attention must be given during the drafting of an employment contract.
Read the rest of this article to explore what’s typically included in an employment contract, how to draft it, and how a qualified lawyer can help you to ensure it’s fair, clear, and legal.
What are Key Terms in an Employment Contract?
To ensure the employment contract covers all important aspects of the working relationship, it should include key terms such as the following:
- Job description. The contract must clarify what the employee’s job role, job title, and duties are. This will ensure that they know what’s expected of them.
- Salary. The employee should know how much they will earn in their job role and if this will be paid hourly or monthly. The payment schedule must be included for transparency.
- Benefits. Additional compensation, such as dental care, bonuses, and health insurance, will be included as part of the employee’s compensation package.
- Work hours. The number of hours that the employee is expected to work must be included. This section should also clarify how overtime is defined and compensated.
- Intellectual Property (IP). The employment contract should define IP ownership and clarity about who owns content created during the employment term.
- Termination. There should be conditions for how the contract can end, and it should include how much notice must be given and what grounds are valid for termination.
How Do You Draft an Employment Contract?
When writing an employment contract, there are important things to consider.
Consider Employment Laws
There are laws governing working hours, wages, and other aspects of employment. These must be included in the employment contract so that it’s compliant with all relevant laws and regulations.
Think About Expenses
The employee might have some expenses to cover during the fulfillment of their job tasks, such as travel costs. The contract should include how they will be reimbursed for these and what submission is required, such as providing receipts, so that there are no delays in reimbursement.
Include Non-Disclosure Clauses
A non-disclosure agreement informs parties of how they are responsible for protecting the company’s sensitive information, such as trade secrets. The employment contract should include details about what information must be protected and what doesn’t require protection, such as information that’s already public knowledge.
There should also be clarity about how breaches will be handled, such as the damages employees in violation of the NDA should pay.
Don’t Forget About Amendments
Employment contracts might need to be revised over time. The original agreement should specify how changes will occur, such as if notice of changes needs to be provided or both parties need to consent to the revisions. It’s wise to ensure all changes to the contract are made in writing so that they can’t be disputed at a later stage.
Research Similar Salaries
As an employee, you should research salaries for similar roles to yours in your location. This will help you assess if you’ll be compensated fairly before agreeing to the contract’s terms.
Mention Restrictions
There might be some restrictions in an employment agreement, such as “side hustles” the employee is allowed to accept. Another example is a non-compete clause that can restrict an employee from working with competitors after terminating the contract.
These should be included to provide clarity on real-world considerations.
How Can a Lawyer Help You with Employment Contract Drafting?
Although you might assume you don’t need to hire a lawyer to draft your employment contract, it’s advisable. There are legal and financial aspects tied to employment contracts, so both employers and employees need to know that it’s legally sound and clear to avoid disputes.
Here are some reasons why you should work with a lawyer when drafting an employment contract.
- A lawyer will assess the employer-employee working relationship so that the agreement is tailored to its specific concerns.
- They’ll use specific and clear wording that isn’t confusing or dense, so that both parties understand it. This prevents misinterpretations.
- They’ll match the agreement terms to all relevant laws so that the contract is enforceable and won’t expose the employer to penalties or disputes.
- They’ll explain both parties’ rights and obligations, such as regarding IP and data protection.
- They’ll identify broad provisions that could result in litigation.
- They’ll provide clarity on industry practices and ensure the agreement is aligned with them.
- They can also review an employment contract you already have written so that you feel confident to sign it.
Where to Find a Lawyer for Employment Contract Drafting
When searching for a lawyer, the process can sometimes be time-consuming and stressful. It’s not always easy to find the right lawyer for your legal requirements, such as if you need an employment contract drafted.
On ContractsCounsel, one of the biggest online legal marketplaces where clients connect with vetted lawyers, you can request a professional lawyer to draft your employment contract for peace of mind that all the terms are clear and legal.
To request a lawyer to draft an employment contract on the platform, here are the simple steps to follow:
1. Go to the ContractsCounsel marketplace, where you can post your project for free.
2. Include some details of what you require so that you’re matched with the most suitable lawyers.
3. You’ll receive multiple bids from lawyers directly on the platform who can assist you.
4. After receiving the lawyer bids, you should review the lawyers' profiles. ContractsCounsel provides a range of lawyer information you can access, such as their location, client ratings, years of experience, previous projects they’ve completed, and field of expertise.
5. Connect with a lawyer you think is best suited to your requirements and hire them to draft your employment contract. You can also request a chat with the lawyer if you have any queries.
