An employment contract is the main document that defines the rights and obligations between an employee and an employer. It states that employees perform their tasks, and receive salaries from the company that hired them.
Everyone who has ever entered into an employment relationship has come across employment contracts. Business documents of this type are common and play an essential role for businesses.
In this article, we will look at how to optimise contract work, where to search and save employment contract templates, and what automatic tools will help companies of various scales.
When Should an Employment Contract Be Used?
Labour laws vary considerably from country to country, so in some cases, a written contract between the employee and the organisation would be mandatory, while in other countries there would be several options to regulate labour relations.
In the UK, for instance, a written employment contract is not required. At the same time, there is another mandatory document that the employer provides to all employees — it is called a "written statement of employment particulars". This document describes the basic details for a new staff member. The first part of the "written statement" is provided on the first working day, and more detailed conditions are issued within 2 months.
Whatever jurisdiction you are in, it is always better to sign an employment contract, even if it is not required by regulators. This protects both the company and its employees in case of any disputes and reduces the risks for both parties. Build your custom contract of employment template in LIGA UNITED.
Who Are the Parties in an Employment Contract?
Contracts regulate relations between two parties — the employee and the employer — entering into labour relations.
- The employee undertakes to perform the work specified in the agreement and to follow the internal working requirements.
- The employer (owner of the company) undertakes to pay the employee a salary and provide labour conditions necessary for the performance of tasks.
The typical structure of the contract, where the rights and obligations of the parties are prescribed, can be saved in the contract of employment template in LIGA UNITED.
What Clauses to Include in an Employment Contract?
There are variations to contracts, and terms can be different depending on the nature of the business, its size, the position to fill, and the legislation you operate in. Those aspects will dictate which terms should be agreed upon between the parties in advance, and be put down in writing.
The standard contract of employment template has the following structure:
- Name and address of the employer and employee.
- Job title and workplace.
- Probation period.
- Working hours.
- Salary and compensation.
- Sick, holiday, maternity/paternity leave.
- Notice period.
- Confidentiality and security.
- Etc.
It should be noted, however, that not all terms should be described in detail in contracts. For instance, it is better to leave some degree of flexibility when it comes to discretionary bonuses, unexpected sickness leave and other situations which are difficult to predict in advance. Even though such clauses may be envisaged in documentation, they must be easily adapted to reflect particular situations that may occur within the employment relationship.
What Information Do I Need to Complete My Employment Contract?
Both parties are signing the contract to clarify their duties and rights, have a mutual understanding of the scope of the tasks, as well as to protect themselves from risks. With that in mind, your work contract should provide information on:
- Job description, requirements and responsibilities for the role.
- Payment rates and bonuses.
- Work hours and schedule.
- Vacations and time off.
- Security policies.
- Conditions for termination of the contract.
Those terms are a minimum to guarantee that both sides understand their obligations and set up the right expectations for their cooperation. Use the contract of employment template in LIGA UNITED to create your document seamlessly and never miss relevant clauses.
What Are the Notice Periods in an Employment Contract?
After resigning from their position, employees have to continue working for a certain amount of time. The duration is usually specified in the contract as a “notice period”. Minimum notice lasts a week in the UK for workers who have been employed between one month and two years.
Apart from local legislation, the following conditions may affect how long the notice period lasts:
- Amount of time the worker held their role before the resignation,
- Terms for termination specified in the contract,
- Whether the employee resigned, was made redundant or was dismissed.
Want to streamline your document preparation? Create the contract of employment template in LIGA UNITED.
How to Make an Employment Contract Template in LIGA UNITED?
LIGA UNITED offers powerful features to automate your contract workflow, decreasing time teams spend on document preparation, checking and approving. The platform allows building a wide range of ready-to-use templates, such as document drafts for different job roles and employment contract templates UK.
Template creation in LIGA UNITED includes several easy steps:
- Upload the file or choose the document from the database.
- Use editing tools to adjust template to your needs. The functionality allows you to easily create new sections, edit the document, and navigate through the text.
- Run the analysis to check the errors in your text, as well as the pitfalls of the agreement. The system will notify you if mistakes are made in requisites, sums, or mandatory provisions.
- Send your document for signing.
Order the LIGA UNITED demo now to learn more about easy document preparation.
Why Use LIGA UNITED’s Employment Contract Templates?
When compared with free employment contracts, LIGA UNITED provides an additional layer of confidence for both employers and workers. Here are some advantages of working with the system:
- Fewer mistakes in your agreements with the auto-check feature. You can analyse your text for common mistakes, vague formulations, typos in dates and sums, etc.
- Custom-made templates uploaded by a user or created on the platform. You can add your own templates, which are used the most in your company.
- Less time for approval. Having pre-made templates at your disposal improves the contract workflow for your company, as it requires less time for document checks and approval.
Book your demo today to learn more about LIGA UNITED benefits.
LIGA UNITED includes several employment contract samples in English, which can be easily edited according to your needs.
A template is a draft of an agreement between employer and employee, which describes the responsibilities and rights between the parties and includes details of working relations.
LIGA UNITED allows you to be sure of your agreements, with features for text check and risk check, as well the flexible tools to edit and store your documents.
