Our template includes standard language you’re welcome to modify as employee contracts for small business part of the employment terms. We’ve provided a general employment agreement template for you to download and use. You can customize it to your individual circumstances and state requirements.
- For small businesses, in particular, HR ensures that essential processes—like hiring, onboarding, and performance management—run smoothly, freeing up time and resources to focus on growth.
- Agency workers usually work on a temporary basis, and the length of their contract will depend on your needs as an employer, as well as their availability.
- With a valid employment contract in place, you have a much better chance of being able to successfully seek legal action against the ex-employee and potentially receive damages.
- An employee contract template can be used to formalize your employment agreement with a new employee.
- Employee contracts are a type of business deal that prevents legal liability from falling on a small business owner.
Step by step instructions on how to write your own employment contract
Download this At-Will Employment Agreement to provide yourself the freedom to terminate their employment at any time and without cause. A Compensation Agreement Template is a legal contract that spells out the terms and circumstances of the trade of products or services for cash between two parties. An Employee Retention Agreement Template is a written agreement that institutions use to possess high-achieving workers who have been with them for an ample period. You’ll have the potential employee sign if they agree to the terms of the possible new employee agreement you have discussed.
Zero-Hours Employment Contract
Also, as your business grows or changes, a contract will ensure a certain level of performance from your team (regardless of whether they are remote or on-site). Writing contracts can be daunting, but with a little bit of help from a small business expert or contract library, you can easily set the right contracts in place for a flourishing 2023. In 2020, work from home became the new normal, but now, many companies are urging employees to come back to the offices and split their time between the two. This contract should set clear expectations on when an employee needs to report physically to work — will there be a fixed schedule like 3 days from home and 2 days in the office? What would be the attendance protocol if there are training programs or team meetings that are scheduled on the days the person is not expected to be in the office? An employment contract or contract of employment is a legal agreement between an employer (you) and an employee that covers all the terms and conditions related to employment.
Why Employees Quit (and 7 Steps to Retain Them)
- D) Choose this option and explain any other commissions received for services rendered under this agreement.
- Use a freelance contract to hire self-employed workers for your business or a specific project.
- Background checks alert you to past criminal issues that could affect the person’s candidacy.
- If your business is located in the United Kingdom, you can edit the location details in our small business employee contract template.
- However, employers should manage fixed term contracts carefully to avoid misunderstandings about extensions or early terminations.
- Based on the inclusions, the candidate may wish to negotiate terms before agreeing.
A phone chat works best for an initial interview to review the job’s basics. Avoid wasting your and the applicant’s time if the salary and expectations don’t work for either party. Many employers use online job sites like LinkedIn, Indeed, CareerBuilder, or Monster. Recruiters also can assist with finding eligible candidates for any vacant roles in your company. By drafting an employment contract today, avoid mistreatment and legal repercussions for both parties.
Start with giving the agreement the proper title, then identify parties to the contract. After that, list the terms and conditions of the contract, such as working hours, confidentiality policy, and severance package. Don’t forget to include compensation information (salary, annual bonuses, holidays, overtime payment, etc.). Finally, to avoid conflicts and litigations, it is recommended to consult an employment lawyer before submitting the contract for signing. Don’t make the mistake of assuming you’ll have to hire a human resources team or legal consultant in order to put together worthwhile employment contracts, either. Ultimately, they’re relatively straightforward documents that a small business management platform like Homebase is perfectly equipped to help you with.
What to Include in an Employment Contract Template
Plus, when small business owners develop employment contracts with the help of a human resources professional and/or lawyer, they make sure that the agreement complies with local, state, and federal labor laws. They are typically formal, written documents that employers develop with the help of a lawyer, human resources professional, or HR tool and ask team members to revise and sign before their first day. However, especially Bookstime in the small business world, employment contracts may be more informal or even verbal, though this isn’t recommended from a legal perspective.
Step 2 – Term and Probationary Period
As an employer, it’s important that you keep track of your employees’ employment rights, so you don’t find yourself on the wrong side of the law. Having an employment lawyer draft a small business employment contract can be a trustworthy solution. Also known as casual contracts, online bookkeeping zero-hour contracts specify that an employee works only when required by you, the employer. This is a contract that provides the utmost flexibility to you, the employer, if you cannot guarantee any number of hours to be worked. As an employer, you are under no obligation to provide a set number of hours worked.
- Hiring family members might seem like a straightforward option, but it’s important to remember that employment laws still apply.
- A breach of contract may allow the party to seek compensatory damages for any financial losses.
- As an employer, it’s important that you keep track of your employees’ employment rights, so you don’t find yourself on the wrong side of the law.
- Our template provides fill-in-the-blank placeholders with subsections for you to provide these basics.
- One of the typical leave benefits that businesses offer to their employees is bereavement leave.
HR uses tools like performance management templates and performance management software to streamline the review process and ensure fairness for all involved. Regular performance reviews give people the opportunity to reflect on their achievements, identify growth areas, and set goals for future success. HR leaders can implement performance management strategies to help team members improve productivity, develop new skills, and take an active part in promoting organizational goals. This protects your business from potential legal mishaps and makes sure you’re treating your people fairly—which goes a long way toward building a positive and safe workplace culture.
