Employment agreement (hourly)
1. Employment and duties
1.1 The Employee is employed as TITLE in the Company.
1.2 The Employee's duties will consist of DUTIES, and other tasks that are naturally associated with the Employee's position and work.
1.3 The Employee's work will mainly take place at ADDRESS, but can vary as needed.
2. Working hours
2.1 The employment relationship shall start on DATE.
2.2 The Employee's working week shall normally be NUMBER hours exclusive a half-hour daily lunch break, which the Employee shall bear at his own expense.
2.3 The parties will together agree and plan the Employee's working hours.
3. Salary
3.1 The Employee's gross salary amounts to AMOUNT per hour.
3.2 The salary shall be paid no later than the third business day after a payment period to the bank account which the Employee has informed the Company. A payment period shall be X WEEKS/MONTHS.
3.3 The tax consequences of salary for the Employee shall be of no concern to the Company. The Company will hold and pay any expenses that the Company is required to by law.
4. Expenses
4.1 If the Employee's work involves travel, accommodation or similar, the Company will cover such costs.
4.2 The Company either pays the expenses in advances to the Employee or reimburse expenses that the Employee has, against the submission of original receipts.
5. Holidays
5.1 The Employee is entitled to holiday pay etc. according to the rules that apply at any time according to the law of COUNTRY.
5.2 The parties shall together agree on the time of the Employee's vacation.
6. Disease
6.1 The Employee receives benefits from the Company during illness, to the extent dictated by law.
6.2 If the employee is unable to perform his duties due to illness, the Employee must report it to his supervisor no later than. 8:00 on the first day of absence.
7. Confidentiality
7.1 The Employee must at all times maintain the confidentiality of the Company’s business secrets or other information about the Company, regardless of type, which is not publicly available. The Employee shall not, without permission obtain access or possession of the Company’s confidential information.
7.2 The Employee must store the information securely to prevent that third parties get access to the information.
7.3 The Employee must submit the Company's confidential information upon termination of the employment and may not retain copies of the information.
7.4 Employee's confidentiality obligations apply both during the employment and at any time after the employment is terminated.
8. Duration
8.1 The first NUMBER weeks of the employment relationship is considered a trial period where Employee and the Company in writing may terminate the employment relationship without notice.
8.2 After the trial period, each party can terminate the employment with NUMBER weeks notice.
9. Other terms
9.1 The Employee may have other employment and responsibilities outside this employment without the Company's consent, to the extent the Employee can carry out the responsibilities of the employment relationship with the Company and without inconvenience to the Company in general.
9.2 The Employment relationship is not governed by collective agreements.
9.3 Disagreements between the Employee and the Company, which cannot be resolved amicably shall be settled under the laws of COUNTRY in the court of CITY.
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What is an employment contract for hourly paid employees?
An employment contract for hourly employees outlines the essential terms governing an individual's employment within a company. In addition to stipulating details like job duties, working hours, and compensation, this contract may also cover confidentiality and the protection of intellectual property rights.
When is an employee considered hourly paid?
Hourly paid employees are compensated based on the number of hours they work during a specific pay period. This payment method is often used for roles where the workload may vary weekly, or employees are engaged in primarily time-based tasks.
For example, servers, retail sales associates, or customer service representatives are often paid by the hour. Their earnings are calculated based on the hours they clock in at work, and they may receive overtime pay if they work more than a certain number of hours in a week.
Here’s an example. A retail store hires Sarah as a sales associate. She is paid an hourly wage for her work. Her employment contract outlines that she is expected to work 20 hours per week, with a schedule determined by her manager. Sarah's hourly rate is $12 per hour, and she receives overtime pay for any hours worked beyond 40 hours in a week.
In addition to her hourly wage, Sarah is entitled to paid time off, including vacation and sick leave, as outlined in the company's policies. After completing a three-month probationary period, she is also eligible for participation in the store's health insurance plan.
Sarah's employment contract specifies her job duties, which include assisting customers, restocking shelves, and maintaining the cleanliness of the store. It also provides confidentiality and intellectual property provisions, ensuring Sarah understands her obligations to protect sensitive company information.
If either Sarah or the employer wishes to terminate the employment relationship, they must provide two weeks' notice according to the contract terms. In the event of termination without cause, Sarah would receive severance pay based on her length of service with the company.
Can a salaried employee be paid by the hour?
Yes, a salaried employee can be paid by the hour under certain conditions, And those conditions will vary based on your country and state.
Hourly paid salaried employees may include students, on-call substitutes, and individuals working part-time with varying hours during the pay period. These employees receive compensation based on the hours worked, even though an overall salary policy covers them. They enjoy protections related to termination, illness, and other employment matters.
What to include in an hourly employment contract
Personal Details
Provide details about your organization and the client — such as your name as the independent contractor, the client’s name, and the start date.
Scope of Work
This segment of the service agreement is paramount for independent contractors opting for hourly compensation. It's where you delineate the precise details of the work you're contracted to execute.
Schedule and Dates
This section provides information regarding when you'll achieve the milestones outlined in the scope of work. This gives you and the client a comprehension of the project's duration and when specific aspects will be completed.
Payment Details
It's crucial to emphasize here that your client isn't merely compensating you for the hours devoted to working on their project but also for all hours expended on providing other services pertinent to the project. You should include tasks like emailing, making phone calls, and even doing research.
Changes and Revisions
This contract clause elucidates how you'll manage revisions or alterations to the original contract.
Legal Liability
This clause safeguards you against bearing responsibility for any damages claimed by the client or a third party arising from the services rendered.
Copyright
Creative endeavors often become subject to intellectual property disputes, underscoring the importance of preemptively addressing this aspect. This provision also protects the confidential information of your client’s company and yourself as the independent contractor.
Termination
This clause serves as your contingency plan—outlining the course of action if either party opts to discontinue the project, including any repercussions for the terminating party.
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This contract outlines the terms of an hourly employment agreement between an employee and a company. It covers details such as the employee's job title and duties, work location, start date, weekly hours, hourly rate, payment schedule, vacation/sick leave policies, confidentiality obligations, probationary period, notice period for termination, and governing laws. The contract aims to clearly establish the rights and responsibilities of both parties.
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