A Labor Contract also referred to as an Employment Contract is a document that defines the relationship between the employer and employee. This way they both have a clear knowledge of the obligations of each other. It explains what one party will do and what the other party requires from him. Allow me to share with you a professional Labor Contract Template to assist you in preparing your contract.
When a company hires an employee, the recruiter assumes some duties or responsibilities that the employee will perform. Also, the employee expects the benefits he will get on the job from the company too. This way if they don’t state their requirements and needs in front of the other one. It’s possible that soon they won’t be able to continue their journey together because of the confusion and misunderstandings. This is why the employer prepares and signs a contract to make everything crystal clear.
Here is a preview of this Free Labor Contract Template in MS Word format.
Here is the download link for this Labor Contract Template,
Essential elements to include in a Labor Contract:
Define the Job Position
The contract should contain a definite description of the job along with the duties and responsibilities. This way when both parties are signing the contract, they both are aware of what the employer is offering and what the employee is accepting.
Length of Contract
This section concludes with the time the employee will work for the employer i.e. six months, one year, or five years. This makes it possible for the employee to not keep hopes too high and have a clear knowledge about the time when the contract will expire.
Performance
Here the contract states what kind of duties and responsibilities that the employee is required to perform on the job.
Benefits
Here the employer provides the benefits that the employee will receive after he has got the job. For example free education for the kids, free medical for family, insurance, and retirement plan.
Termination
it’s possible that after a while, the employee will decide or choose on his own without getting approval from the authority and this will cause some disputes between the employee and employer. This part explains what conditions will result in his termination from employment and what kind of decisions he is not allowed to make.
Other specific conditions (if any)
Depending upon the work environment and the company type, the employer or employee may have some additional conditions to state too. Those conditions or rules are stated here and both parties need to approve them.
How to prepare a Labor Contract:
- Print this contract on company letterhead so that both the Employer and Employee can use it in court in case of any dispute.
- State the date when the contract will start and the name of the Employee clearly
- Describe the job and provide the specifications about the job and its responsibilities.
- The contract should state the salary of the employee on a daily, monthly, and yearly basis just to make sure that both parties are on the same page. If the employer is required to increase the salary every six months, that should be stated here too.
- After that, the employer should include the violations or misbehaves that can result in the employee’s immediate termination from the job.
- The contract must state the benefits the employee will receive and the criteria he or she needs to follow to get those benefits like medical, insurance, or retirement plan.
- At the end, the employer and employee need to sign. The whole contract is a waste of time if any one of them does not agree to sign the contract as that may result in the expiry of the agreement.
