Employment Agreement is an agreement, between the employee and the employer, used to mention the terms and conditions for hiring and stating the compensation that will be received by the employee. It may or may not be a binding contract between an employer and an employee and is usually in the written form. It is used for different types of employment, which include full time, part time orcontract-based employment.
Employment Agreement and its benefits
It benefits the employee in a retirement account, disability, life and health insurance. It usually mentions the essential aspects of the employment such as wages, the procedure for termination, covenants not to compete, duties and responsibilities of both, the employer and an employee, and includesemployee’s work hours, confidentiality, annual leaves and various other terms. The contract also protects the employer as it regulates the employee’s behaviour in the office.
How to use this document?
The employment agreement should be printed on stamp paper, and both, the employer and employee, should sign it and keep a copy for their own records.
Components
All employment agreements are different, but some components are typically included, such as:
It tells the responsibilities and the employee’s work nature. It holds details of sick leaves, yearly leave days, reasons for termination from job and many more. The contract defines the annual income and pays rates. It also decides on the working period and working hours. The employment contract helps both the parties to work happier together.
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