Key Sections in Your Employment Contract Template

When buying an employment contract template to use for formalizing the terms of a work relationship, there are four primary things to look for. It's important that the format includes these things, otherwise it may not be legally enforced.
First of all you ought to look for is space to distinguish the parties in the agreement. This implies the hiring manager or organization and the worker. You should be able to key in complete names, company names, address, telephone numbers, as well as other related info. This is essential to ascertain who the legally acknowledged people in the agreement are, and where they are geographically located. Location is applicable to the next item.

The second thing you should look for is a choice of laws and location in the event there is a disagreement that needs to be solved in a court or through attorneys. This will say something like "this contract is governed by and subject to the laws and regulations of the state A. Any kind of disagreement over the terms of this contract shall be addressed in a court or arbitration room in the county of Y in the state of A." As you can see, if you do not look out for this you could be pulled into a litigation on the other side of the country and even in another country altogether!

The third thing to consider in an employment contract template is whether or not the counterparties are referred to as company and employee or company and independent service provider. This is an important consideration, since the rights of an employee and independent service provider are extremely distinct. Employees typically obtain some form of benefits from the company, their own income taxes are deducted automatically, perhaps there is a pension plan or medical insurance plan, and the like. However, an independent service provider must supply all of these benefits on his own. Businesses pay independent workers much like other suppliers - using a 30 / 60 / 90 day payment plan once they are correctly invoiced. On the other hand, the business may want experienced crews for only a short time or for a specific project, whereby the independent contractor job status is what is required. It should be clearly written in the contract precisely what status the two persons have from the very start.

Next, you should make sure the employment contract template is written in clear language and you are able to comprehend every part. There is enough to worry about for both sides when commencing a brand new career or project. By making sure the template is written naturally and not in a confusing or non-obvious manner, this will save you a lot of time and expense when there is ever any kind of query about the duties and obligations of the parties.