How to Create an Employment Contract

Employment contracts protect employers and employees.

Employment contracts are used by employers to document the terms of employment as well as benefits included with employment. Both employees and employers must sign the contract. Breaches of employment contracts occur when employees or employers violate the terms of the contract and are subject to legal prosecution. The contracts protect employees and employers by ensuring that both parties follow these pre-determined terms throughout the length of employment.

Instructions

1. Outline the responsibilities of the employee. Include the day-to-day activities of the employee as well as the employee's long-term duties. The hours, days and location of work should also be included.

2. Indicate the length of employment. The length of employment could be any amount of time. If an indefinite length of employment is indicated, employment can be terminated at any time by either employer or employee.

3. List the reasons you can initiate termination of an employee.

4. List benefits included with employment. Salary, health insurance, vacation time, sick leave and company cars are common benefits included with employment.

5. Sign the contract.

6. Request that your employee reads and signs the contract.

References

• Find Law: Employment Contracts and Compensation
• NOLO: Written Employment Contracts