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Sample Employment Contract Template PDF Free Download
Employment Contract Templates
Provisions and Clauses
An employment contract is made up of different stipulations.
Upon signing the agreement — as long as the provisions and clauses are within the bounds of the law — the contract is effective.
It’s important for both employers and employees to know what rules to which they’re bound during someone’s employment term.
Duties:
The employee’s title and main duties bind the worker to carry out the duties within the contract.
Adding clauses that suggest that the duties could change over time always pads a contract with flexibility.
Compensation:
Compensation sets the starting wage that the employee will be paid and is typically categorized into salary (yearly pay) or hourly pay, as well as how often the employee will be paid.
Termination:
Some employment contracts are not longstanding, and some have an end date. Some renew yearly.
The termination date of the contract would be listed in these cases, but in the case of at-will employment, the termination section might be where
Non-Compete:
Employers have the option to include a non-compete clause for a set timeline, which would prevent workers from bringing trade secrets to competing organizations.
With a stringent non-compete, employees that leave might not be able to work for employees in similar industries.
Trial Period:
Also known as the “probationary period,” and is when a new employee is hired on a no-commitment basis for a set time, after which the employer will have the choice of either terminating or retaining the employee.
If the employee is retained, employer benefits like healthcare and more typically begin.
Benefits:
Benefits like health insurance, PTO, sick leave, and any other extras that the company provides the employee in addition to their salary should be listed.
How to Hire an Employee
When hiring an employee to fill a position, it is best to know exactly the skills and the traits that are needed in order to place an ad that gets the most qualified candidates. The hiring process also depends on the State as there are certain laws on what can or cannot be counted against the potential employee when considering employment.
Step 1 – Figure the Pay and Position
Once an employer has figured that there is a need for a position within the company they should decide:
The individual’s role;
Number (#) of hours to work per week;
Pay (salary);
Benefits; and
Time off (vacations, holidays, personal leave, etc.)
What to Offer for Salary? –
The most important figure to candidates will be the pay (salary).
Find out how much specific professionals are being paid in your area by using websites such as PayScale.com, Glassdoor.com, and Indeed.com.
This will allow the employer to understand the “going rate” for the profession in their market.
Step 2 – Place a Job Listing
Depending on the employment position, it is best to make an ad that details exactly what is expected of the individual as well as what skills will be needed for the available position.
It is best to place the job listing either in a local newspaper or on one (1) of the following websites:
Indeed.com – The largest website for job openings.
Craigslist.org – The oldest site for job listings. Great for supplemental, low-level, or part-time work.
Glassdoor.com – Allows employees to post reviews about employers.
Betterteam.com – Make 1 posting on this site and it will distribute to the top 100+ job sites.
Step 3 – Review Candidates’ Applications
Get ready for your inbox to be overloaded with resumés.
For general labour positions, the first individuals to apply will probably be the ones to get the job.
For more skilled professions, it will be easy to filter the applications just by reviewing the candidate’s past work experience.
Step 4 – Start the Interview Process
Now it’s time to begin setting up interviews and getting to know the person behind the resumé.
The employer will need to prep their interview questions and be able to formulate a conversation that will determine if the candidate will be a good fit for the company.
In addition, seeing the candidate’s enthusiasm for the industry and the company is a good test when finding out if the person truly has an interest in the industry.
This will also help in filtering out employees that will be moonlighting, also known as working for two (2) jobs at once.
This is an issue, especially for employers that work in remote locations.
Step 5 – Verify the Resumé
According to HireRight.com’s Study in 2018, an estimated 85% of candidates lie on their resumé when applying for a job.
Therefore, it is important and doesn’t take that long, to verify past employment, references, and the education of an individual.
Especially since there are thousands of dollars at stake and the cost of hiring someone may be more liable than the money spent on their salary.
Therefore, it is highly recommended to verify that the individual is who they claim to be at the start of the hiring process.
Step 6 – Prepare an Offer Letter
Once the candidate has been selected by the employer, it’s now time to entertain their needs by submitting a job offer letter to them.
This will outline the payment structure (usually salary or $/HR), benefits, time off, and any other terms or company policy that should be mentioned.
A job offer letter is nonbinding even when signed by both parties. It is just an outline for an agreement.
Step 7 – Perform a Background Check
It is necessary to conduct a background check on every one that is hired by a company.
Not just for the safety of the clients and customers but also for the other employees that work for the company.
Use the following services to conduct a criminal background check:
- GoodHire – $54.99
- Connect – $79.95
- HireRight – $79.95
- AccurateNow – $30
Step 8 – Complete and Sign the Employment Agreement
After the background check is clean the employee should be called in to negotiate the terms of their employment.
Typically, this is best done in person as the individual will be able to detail their wants and needs and an agreement can be signed soon after.
After the agreement has been signed, the employee will be required to present themselves on the first (1st) day of employment and the agreement will continue unless terminated by either of the parties, if at will, or at the end of the term, if fixed period.
| Author | – |
| Language | English |
| No. of Pages | 6 |
| PDF Size | 2 MB |
| Category | Form |
| Source/Credits | eforms.com |
Sample Employment Contract Template PDF Free Download