Permanent employment contract
1. Appointment and Duration
1.1 The Company shall employ the Employee and the Employee shall work for the Company under the terms of this agreement.
1.2 The Employment shall commence on DATE and shall continue (subject always to the terms of this agreement) until terminated by either party serving notice in accordance with the provisions set out below.
1.3 The first DATE months of the Employment shall be a probationary period and the Company may terminate the Employment at any time during this period on X weeks’ notice.
2. Duties
2.1 The Employee shall be employed as JOB TITLE or such other role as the Company may require from time to time having regard to the needs of the business and the Employee’s skills, qualifications and experience.
2.2 Details of the Employee’s duties will be communicated upon commencement of employment. The Company reserves the right to vary the Employee’s duties from time to time as may be required by the business.
3. Place and hours of work
3.1 The Employee’s ordinary place of work will primarily be LOCATION but a different location may occur from time to time.
3.2 The Employee’s normal hours of work shall be TIME to TIME from Monday to Friday.
3.3 The Employee may from time to time be required to work such additional hours as are necessary for the proper performance of his duties. The Employee acknowledges that he/she shall not receive any additional remuneration for any such additional hours worked by him.
4. Salary
4.1 The Employee shall be paid a basic salary of AMOUNT per month. Payment will be made in arrears in equal monthly instalments and shall accrue from day to day. The salary will be paid out to the Employee on the E.G. FIRST BANK DAY OF A NEW MONTH.
4.2 The Employee acknowledges that the Company may at any time deduct from his basic salary, or such other amounts as may be owed to the Employee, any sums that may be owed by the Employee to the Company including, but not limited to, overpayment of annual leave, unauthorised expenses and outstanding loans.
5. Holiday
5.1 The holiday year runs from DATE TO DATE.
5.2 The Employee is entitled to NUMBER days holiday in any holiday year. In addition, the Employee will be entitled to the usual bank and public holidays as are recognised in COUNTRY.
5.3 The Employee may not, without the prior written consent of the Company carry forward more than NUMBER days holiday from one holiday year to the next.
6. Sickness or injury
6.1 In the event that the Employee is absent from work due to sickness or injury, he will inform his supervisor as soon as possible and will provide regular updates as to his recovery, and as far as practicable will inform his supervisor of his expected date of return to work.
6.2 If the Employee is absent from work due to sickness or injury for more than seven consecutive days the Employee must obtain a medical certificate from his doctor and submit it to his supervisor.
6.3 For any period of absence due to sickness or injury the Employee will be paid statutory sick pay only, provided that he satisfies the relevant requirements. The Employee’s qualifying days for statutory sick pay purposes are Monday to Friday.
7. Confidential Information
7.1 The Employee acknowledges that during the Employment he shall have access to and use of confidential information.
7.2 The Employee agrees that he will not (other than in the proper course of his duties under this agreement), either during the employment or at any time thereafter (unless authorised to do so by the Company in writing) directly or indirectly (i) use for his own benefit or the benefit of any third party or (ii) disclose or permit the disclosure of any Confidential Information.
7.3 The Employee agrees that he will at all times use his best endeavours to protect the confidential information and prevent the unlawful disclosure or publication of it.
7.4 The restrictions on the Employee’s use of Confidential Information shall not apply to:
Confidential information which comes into the public domain other than in consequence of his unlawful disclosure;
any information which the Employee has acquired other than through the performance of his duties for the Company; or any information which is required to be disclosed by the Employee by order of a court of competent jurisdiction or an appropriate regulatory authority or otherwise required by law.
8. Conflict of interest
8.1 During the Employment the Employee shall not undertake any paid or unpaid work for any other company, firm or organisation without the written approval of the Company.
9. Termination of employment
9.1 Subject to the following, the Company may terminate the Employment by giving to the Employee NUMBER months’ written notice.
9.2 Subject to the following, the Employee may terminate the Employment by giving to the Company NUMBER months’ written notice.
9.3 The Company reserves the right, at its discretion, to terminate the Employment immediately without giving the period of notice referred to above by paying to the Employee his basic salary (fewer deductions of tax and national insurance) in lieu of all or part of his notice period as the case may be. Such payment in lieu of notice shall not include any element in relation to any holiday entitlement that the Employee would have accrued had he worked the full period of notice.
10. Company Policies
10.1 The Employee is subject to the Company’s disciplinary and grievance policies, copies of which can be obtained from INSERT. The disciplinary and grievance policies are not contractual in effect and do not form part of the Employee’s contract of employment.
10.2 The Company may suspend the Employee for a period of up to INSERT weeks for the purposes of carrying out a disciplinary investigation into any allegations that might be raised against him. During such period of suspension, the Employee will receive his usual pay and benefits.
11. Collective Agreements
11.1 There are no collective agreements which affect the Employment.
12. Entire Agreement
12.1 The Employee and the Company acknowledge and agree that the provisions of this agreement set out the entire agreement and understanding between them and that it supersedes all prior discussions, arrangements or agreements that might have taken place in relation to the Employment.
13. Amendments
13.1 No amendments to this agreement shall be valid or binding upon the parties unless it is recorded in writing and signed by or on behalf of the parties.
14. Governing Law and Jurisdiction
14.1 This agreement shall be governed by and construed in accordance with the laws of COUNTRY.
14.2 Each of the parties irrevocably submits for all purposes in connection with this agreement to the exclusive jurisdiction of the courts of INSERT COURTS.
15. Other terms
15.1 INSERT ANY OTHER TERMS
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What is an employment contract for a permanent employee with a monthly salary?
An employment contract for a permanent employee is a written agreement between the employer and the employee, establishing the terms and conditions governing their employment.
A monthly paid employee receives a fixed salary each month, regardless of the number of working days in the month. This arrangement doesn’t depend on whether the employee works full-time or part-time. Even part-time employees can receive monthly payments if compensated with a fixed monthly amount.
Are you looking for a contract template where the employee's working hours vary and they’re compensated based on the hours worked? Check out our template for hourly paid employees here.
Think of an employment contract as a protective shield. It makes sure both parties understand their rights and obligations. With this document in place, employers and employees can do the work, knowing that their professional relationship is well-defined and legally binding.
Different types of employment contracts
There are various types of employment contracts tailored to different employment arrangements.
From permanent contracts offering stability to fixed-term contracts for project-based roles, each serves a unique purpose in meeting the needs of both employers and employees.
Whether it's providing flexibility with casual or zero-hours contracts or fostering learning through apprenticeship agreements, our template library has what you’re looking for.
What should be included in a permanent employment contract?
- The appointment date and duration of the employment. This section will need to include any probationary periods.
- The duties the post holder will be expected to perform and the post’s job title.
- The place and hours of work. The contract should also deal with how overtime is expected to be paid.
- The post’s salary. Any salary clause or section needs to break down when the compensation will be paid and how any overpayments or unauthorized expenses are dealt with.
- Holiday days. A good employment contract needs to stipulate the dates the holiday year runs from and to, the number of days the employee is allowed per year, and recognition of how the company deals with public holidays. If a company will enable employees to carry forward holiday days, this section outlines the process.
- Sickness or injury. In this section, the contract will outline what is expected of an employee if they are ever absent for illness or injury. Companies may include a clause stipulating how long an employee can be lacking without a doctor's medical certificate and how or if sick days are paid.
- Confidential information. For companies to be comfortable that none of the sensitive information they handle is leaked, a confidential information section should be included in any contract delineating how employees should handle confidential information. It also needs to outline what will happen to an employee should they disclose confidential information that identifies any lawbreaking by the company.
- Conflict of interest. A clause that explains whether an employee can work for another company (competitor or not) without approval must be included.
- Termination of employment. This section outlines how long the company must give the employee when terminating the position and vice versa. Need an employment termination letter? We have a free template here.
- Company policies. It is crucial to outline a company's policies (like disciplinary and grievance policies) and how long a company can suspend an employee, if necessary, during any disciplinary investigation.
- They are governing law, amendments, and agreement sections. The last few sections should outline where the contract is valid and explain how the signed contract supersedes any previous agreements and discussions.
Do you need an employment contract?
You need an employment contract for salaried employees if your employee meets the following criteria:
- They’re employed in a service position, primarily in the trade and office area, or perform work involving warehouse dispatch or technical or clinical assistance services.
- They work more than 8 hours a week.
- Their employment period lasts longer than a month.
Store all of your employment contracts in one centralized location
The employment contract is a cornerstone of the hiring process, providing a structured framework for employers and employees to navigate the terms and conditions of employment. This template offers clarity and mitigates potential disputes by covering essential aspects such as duration, responsibilities, compensation, and termination clauses.
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This contract outlines the terms of a fixed-term employment agreement between a company and an employee. It covers the employee's job title, duties, work location and hours, compensation, leave entitlements, confidentiality obligations, termination procedures, and other standard employment policies. The contract is governed by the laws of the country specified.
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