Employment Contracts – What should be included?

A contract of employment is a document written to ensure that the employer and the employee agree on the same conditions and have the same expectations. Both parties bind themselves to the contractual obligations agreed upon. Elements of a contract of employment are:

1) Details of the Employer
Information about the company which may include the name of the direct employer and its Business Registration Number.

2) Details of the Employee
The full name of the employee, his identification number, address and so on

3) Employment Particulars
Employment particulars relate directly to the offer;
-The Job Title
-The Job Description, including the scheme of duties and responsibilities
-The type of Contract whether it is of an indeterminate or determinate duration. For a determinate contract, the duration should be specified.
-The Starting date
-Hours of Work and other Working Conditions, like the code of practice or rules and regulations

4) Remuneration Package
The remuneration paid for the service provided by the employee and the frequency of payment

5) Allowances
Any benefits to which the employee is entitled, for instance, bonuses, fuel and car allowances, medical coverage and other fringe benefits

6) Leaves
The number of leaves to which the employee is entitled and under which condition, including annual leaves, sick leaves, maternity leaves, paternity leaves.

5) Probation Period
The probation period that the employee must serve before confirmation that he or she is suitable for the position.

6) Termination of Employment
Conditions for termination of the agreement from whichever party and notice of termination.

7) Confidentiality clause
The employee agrees formally and unreservedly not to disclose any company information.

8) Non-competition clause
Employers within specific industries can determine a non-compete period after the termination of contract. The period space and time should be specified for it to be enforceable.

9) Disciplinary Procedure
Clause for any disciplinary procedure in case of misconduct. The Rules under which a dispute shall be settled is mentioned.

Other elements can be added to a contract but the latter should be in line with the Employment Rights Act or the Remuneration Regulations governing the different sectors. Before engaging in a contractual agreement both parties must be aware of all the conditions mentioned and be given an originally signed version of the document.