Employment contracts are written agreements that lay down the duties and responsibilities both of the employee and the employer. A well-outlined contract can be a very helpful tool for providing both parties equal protection. The contract can also offer security for the employee since he or she will be able to understand the job as well as the expectations asked of him or her. Also, the employer keep hold of the authority to fire an employee who failed to meet the desired expectations or to abide with the conditions and agreements stipulated in the contract.
Every type of contract should contain important conditions. Each should contain basic information of both the employer and employee as the nature of service. Primarily, a contract should also comprise the complete names and addresses of both parties. Next, the agreement should also explain in full detail the position of the employee, range of salary, and other forms of compensations. Working hours, overtimes, sick leaves, maternal/paternal leaves, and sick leaves should also be outlined in a contract. Moreover, if the employee will be starting at a certain probationary period, this must be cited in the agreement. And lastly, every contract should include the basis and system for termination of service.
With a fixed-term service contract, the employee will be hired to work with a certain position for over a specific period of time. This means that the contract should specifically indicate the starting and termination date of service. By doing this, both employer and employee will be aware of the exact date of the beginning and end of the agreement. This type of contract primarily reduces legal challenges regarding issues of termination though legal options may still be allowed should termination was based in unjust grounds.
The ongoing service contract on the other hand, does not indicate the exact date of termination. Meaning, the duration of service of an employee is indefinite. Unlike the fixed-term contract, here, the employee can have make a number of legal challenges since the agreement does not specify the grounds for termination thus brings forth greater risks for both employer and employee to misinterpret the basis for termination.
Several forms of employment contracts may also contain conditions that can include certain boundaries upon other prospects of the employee. For a non-competing provision, the contract may include a clause stating that the hired employee should not seek or gain other employment from competitors for a certain region at a specific period of time.
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