How to Word an Employee Contract

When you hire an individual to work for you, it is important for this person to know what you expect from him and what he can expect from you. An employee contract can help protect your business from a frivolous lawsuit, keep trade secrets confidential and will help confirm the employee's awareness of your company's policies and procedures. Before finalizing an employee contract, seek the assistance of a lawyer who specializes in labor issues to ensure it is complete.

Instructions

1. Title the document and personalize it. When writing an employee contract, place your company's name and the words "Employee Contract" at the head of the document.

2. Date the document on the upper right or left side.

3. Add your business' name and address, as well as the employee's name and address under the date. Adding this information will show whom the employee is and for whom she is working.

4. Detail the responsibilities and duties of both parties. Outline the standards you expect the employee to meet, his responsibilities and any applicable deadlines. In the same section, let the employee know what he can expect from you as an employer.

5. Explain the payment terms in the next section. Write how much you will pay the employee, and indicate if this figure is an hourly rate or salaried wages. You can also include if the employee is eligible for a raise and the conditions she needs to meet to earn a raise. In the contract, also include when the employee can expect payment of her wages.

6. Outline the consequences of violating the employee agreement. In this section, briefly explain the company's disciplinary process. However, state that the employee can find a complete description of the company's disciplinary process in the company's policies and procedures or employee handbook.

7. Mention the policies and procedures. An employee contract may be the inappropriate place to list a company's policies and procedures. Therefore, in the contract, write a section that states your employee received a copy of the policies and procedures, that it is her responsibility to read the documents and that the employee understands that she can always consult with her manager if she has a question regarding the policies and procedures.

8. Create a space for you and the employee to sign and print your names, as well as write the date.

References

• CRN; Sample Contract -- Employee Agreement; July 2009
• Learn That; How Do I Write An Employment Agreement? Jeremy Reis; May 2009
• Directgov: Employment Contracts