You’ll need to include different details, depending on the job title, but most employment contracts contain the following:
Job title and description
With a job description, you can set clear expectations of the new employee’s role and duties. This section can also include other important information, like who their manager/supervisor is, whether the position is part-time or full-time, starting date, work schedule, and the company’s policies.
Compensation package and employee benefits
Besides establishing the new employee’s starting salary, this section can inform the frequency of payment and options for receiving wages, such as direct deposit. Additionally, it can spell out the employee’s eligibility for other benefits, like health insurance, paid sick leave, and stock options.
This is usually a short paragraph detailing that employment is subject to the company’s policies, procedures, and the rules in the employee handbook, which may be revised at any time.
This section explains whether the position is considered at-will employment, meaning that either party can terminate the employment relationship at any time for any reason. It’s essential to avoid any language that implies a fixed-term employment period, as such language may render at-will status null and void.
Keep trade secrets and client lists safe, and avoid potential legal action, with a confidentiality agreement and a requirement that the employee disclose any employment restrictions.
List of contingencies
Clarify that this offer of employment depends on a background check, reference check, and proof of the new employee’s right to work in the U.S., according to your state’s laws. For certain roles, you might need additional contingencies, like a valid driver’s license or an active certification.