Contract Labor Agreements


A company may use a contract labor agreement for any individual who is hired to complete a job. This can be a permanent employment agreement or a temporary contract position, where a trained professional helps out with a given task or project. The contract labor agreement is created to protect the company to ensure they get the services and expertise offered by the hired individual. It is also used to outline a set list of tasks or expectations as a guide for the hired employee.

Purpose of the Contract

  • A contract labor agreement is written to create a legally binding relationship between the company and the employee who is hired to complete a job. The legally binding agreement ensures that the company gets the professional services and skills offered by the employee during the job interview and on the job application. It also protects the company, as the employee cannot simply stop working without a proper warning or resignation notification.

Main Sections

  • The main section of the contract labor agreement includes a general scope of the work required by the company. Other sections include a general schedule of completion if the contract is for a contractor or temporary employee, a breakdown of the salary and benefits the employee will receive for the work and a list of the responsibilities the employee must complete. It will also include legal clauses that explain the requirements for amending or altering the agreement for both parties in the contract.

Additional Training

  • If the hired employee needs additional training, the requirements are often explained in the contract agreement. This can include practical training for office or company procedures or safety training in a production environment. The training can include personnel matters like reporting harassment from coworkers or operation training for dangerous or heavy equipment.

Using a Contract

  • The contract labor agreement outlines the roles and responsibilities the company expects the employee to fulfill. The contract can therefore be used as a guide for the employee to ensure she is fulfilling the required tasks and roles. This can be used for both full-time permanent jobs and contract positions. The company can use the contract as proof that the employee did agree upon signing and can use in the legal action, if the employee fails to respect the outlined terms and condition.

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