7 Important Things That You Should Mention in Employment Contract
For every new start ups, figuring out a professional employment contract can be difficult. Sometimes, you end up with hiring people from your friend circle or from your family on the basis of recommendation and maintaining professionalism may not be possible always. So, it is always a better plan to contact contract staffing services that know their job the best and can come up with strong employment contract that must have the following important matters. Read on to know more-
1. Job Description
This is the first and the most important thing that the employment contract must have. Make sure that the contract you are creating should explain the job in details. If you contact the best contract staffing companies in India, they will guide you how to put the job description in the most effective way. Having a clear job description on employment contract can help you to find the right candidate for your company.
2. Legal Disclaimer
The employment law is different as per varieties of locations. Therefore, the employment contract must include all kind of confidential information, compensation packages to the intellectual properties, and other details. If you contact any contract staffing companies, make sure the contract these details evidently.
3. Compensation and Benefits
While drafting the employment contract, this is another important thing to be included. The employment contract should clearly state the compensation and benefit packages for the employees. It must include annual salary, hourly rate, health benefits, like eye care, dental care, medical benefits, , increments, bonuses, incentives, investment and retirement plans, and so on.
4. Overtime Rules
The overtime rule is different as per different countries and region. For example, in India, if an employee works for more than 48 hours a week, he should be entitled with overtime pay as per the Factories Act, 1948. Make sure you mention such details on the employment contract while drafting it.
5. Leaves and Holidays
The norms regarding holidays and leaves different in different companies. While preparing the employment contract, the company’s policy regarding festival holidays, annual leaves, and restricted holidays should be there. The contract must include number of leaves the employee can take throughout the year, paternity/maternity leaves, number of sick leaves, etc. If the annual leaves are carried forward, that should be mentioned on the contract.
6. Intellectual Property Clauses
Many companies aim to own any kind intellectual properties of the employees, created within the office hours. So, it has to be clearly mentioned on the employment contract so that there is no confusion between the authority and the employees.
Every company has their ethics and norms and the employees have follow it. The termination clause means the situations and conditions on which a company can terminate an employee under any circumstances. This clause must be very clearly mentioned on the employment contract.
So, these are top 7 essential matters to be included on an employment contract. Talk to contract staffing companies in Mumbai like Prompt Personnel Private Limited for more details.