We have prepared 12 points here that you must consider including in your contracts.
Time to hire a fresh face for your company? Or maybe you are ready to sign a shiny new employment contract?
The question then is how you go about it without consulting an army of lawyers. We have prepared 12 points here that you must consider including in your contracts. And as an employee-to-be, these are points to watch out for in a negotiation situation.
Do not sign anything before consulting this. Then, when ready, use our ready-made templates and digital signature to make it easy as pie to handle.
Any good employment contract contains some basic information. And we are not just talking names and addresses here. Make it clear what the position is about. Consider including:
Regardless of the level of work-life balance, the coffee available or the amount of Friday beers - in the end, one of the most important factors is compensation. Consider these points:
Extra: Benefits can also be things that are not monetary. Is the employee allowed to work during their commute, are there work-from-home days or other goodies?
Career progression is extremely important to most hires. Especially Millennials expect a set career ladder or opportunities to grow important skills. Consider the following:
Extra: Consider describing this in an employee handbook that is an appendix to the contract itself.
This is where being a Danish-based company shows its beautiful face. Five weeks of vacation a year, a lot of sick time and often flexible systems for taking time off. But not all are that fortunate. You should consider:
Extra: This is a section of the contract often very regulated by law. Make sure you follow the laws of your country or state.
Most people like stability. Knowing when you should arrive, leave and when to expect extra work is positive. Include the following:
Extra: This is often also regulated by law. In Denmark, for example, the average working week by law is 37 hours if the position is affected by collective bargaining.
Some companies really guard their secrets of business. But if you do not have it in writing, it might be hard to enforce in the end. Include the following points:
Extra: Some industries have special circumstances here. Think of the confidentiality of working with patented technology or medicine or the confidentiality between a psychiatrist and their patient.
No companies function without a full suite of electronics. It is ripe for distractions. But also ripe for abuse. Consider writing the following down:
Extra: In many countries, the level of private use of company electronics can have a direct effect on taxation - keep that in mind!
It is 2020 and sexual harassment policies have never been more important. Consider the following in employment contracts or as a reference:
Extra: This can be a part of an employee handbook. Also note that sexual harassment is not just company policy but in many places also a criminal offense.
A traveling salesman might be expected to hold some business expenses that will be reimbursed. Maybe the employee is moving cross-country to sit in one of your chairs. Think about the following:
Extra: This point will not be relevant to all positions or companies - so feel free to skip it if it is not important to you.
In the same vein as with sexual harassment, employees expect that their place of work takes discrimination seriously. Include the following in contracts:
Extra: Consult applicable law to ensure you are compliant with minimum conditions here.
All good things come to an end. Maybe it was a bad fit, maybe one of the parties is at fault. Either way, set in stone how the termination procedures are handled.
Extra: While nobody wants to consider this at the beginning of a professional relationship, it is extremely important. Notices, valid terminations and termination periods is often heavily regulated by law.
As you part ways and the employee goes their own way, what sort of situations should still be covered?
Extra: Depending on your state, country, region or industry, many of these might not be enforceable.
Remember that contracts are often final. As an employer or employee, do not expect to make big changes three months down the road. So, if you want something done, get it in writing.
This is also where using Contractbook comes in handy: collaborate on contracts through comments and make sure all negotiation is logged and kept on file.
Here are three quick checks before you sign as an employer or employee.
Now, making this list is hard. We have tried to write something that can be used in the US, in France or in India. But we are a company founded in Denmark. That means that for every position, there are applicable EU laws, Danish laws and collective agreements between unions and employer’s associations.
This is multiplied in complexity with all the countries that could benefit from this list. An American company might have to consider state’s laws and federal laws. If in doubt, always consult a legal expert in your country or state.
Because, ultimately, you can write anything you want in an employment contract. You could write the employee should bake you a fresh apple pie every single day. But that does not make it legal or enforceable. Instead, many of the points covered here are also just points that can ensure a smooth onboarding and employment.
Because an employment contract is not just laws and stipulations - it is also a negotiation of benefits and duties.