The Ultimate Guide to Employment Contracts for Small Businesses

Every business needs employees to perform different types of jobs for them. No matter how big or small your business is you should have a proper employment contract for each employee you hire. Here are some important tips to make employment contracts for your business.

1) Employer and Employee details: When making a contract between two parties it is required to involve the contact details for both the parties. Include full name, address, telephone numbers and email address for both the parties. Include other details such as the role offered to the employee, job title, job location, salary details, incentives or additional payments, deductions etc. It is very vital to include every minute detail in the employment contract to in order to avoid any legal actions later on. If you are not sure what to include from legal perspective check out this link https://recovermywages.com/california-break-laws/.

2) Leave details: Every employee is entitled to certain leaves every year, the leave details are added in the contract as general information about the company and how much leaves the employees can have. Mention in detail if the employee cannot apply for leaves during the probation period. The information about the public holidays is usually present on the company’s internal portal so may not be required to add in the contract.

3) Notice period and termination clauses: If an employee decides to leave the job and move on with other options, he has to serve a certain notice period before he can be relieved from his duties. It is important to include the expected notice period in the contract, but the employer can change it according to the current conditions. Similarly, if the employer decides to let go any employee, the company must pay the employee the salary for a predefined duration. The employees have certain rights here and if not followed correctly the employees can choose to take legal action against their employers.

An employment contract is a very important document that works as a mutual understanding between two parties and so it is vital to include as many details as possible in order to avoid further complications.

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