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A Closer Look at Employment Contract Basics

  • Thomas Oppong
  • Jun 12, 2020
  • 2 minute read

All contracts should aim to be as customized as possible and depend on the specific role in question as well as the nature of the business. The following are four key areas that should be covered by an employment contract: 

Conditions of employment

Duties 

Responsibilities

Rights 

Those key areas, in addition to any other additional clauses that a contract might have for forming the basis of employment, are referred to as the “terms” and need to be adhered to by all relevant parties. 

According to Net Lawman, generally they will include remuneration as well as clear indications of the work that is expected and the deliverables. Failure to adhere to the contract terms can result in a breach of contract, which makes it is essential to have clarity within the initial agreement. If in doubt contact 

Contract terms

In addition to general definitions of responsibilities and duties, there are numerous contract terms that frequently are included even though they are not strictly required. 

Being able to make payment rather than giving notice or placing employees on leave during a notice period are some of the common terms that provide employers with additional flexibility.  Businesses might be concerned about being able to protect their intellectual property and confidential information. It is especially difficult to draft and enforce non-disclosure terms ( referred to in English law as covenants).

Implied terms

When certain aspects of an employment relationship are not specified in an employment contract, terms may be implied and applied automatically by virtue of statute. Some common examples of this include the right to having a secure and safe working environment, the prohibition of stealing from an employer, prohibiting the revelation of trade secrets, and the right to have paid holiday. 

Company practice may also imply terms,  such as in the situation of seasonal bonuses. To prevent implied terms from working in unexpected and detrimental ways, the best thing to do is ensure that the contract as clearly as possible and as much ground is covered as necessary. 

Following steps

Employment contracts are essential for the development and growth of a company since they outline the important relationships within your company. It is critical to have a solid foundation to build your business and to achieve your goals. Pay close attention to employment agreements to protect your business and to have productive and motivated employees.

Thomas Oppong

Founder at Alltopstartups and author of Working in The Gig Economy. His work has been featured at Forbes, Business Insider, Entrepreneur, and Inc. Magazine.

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