Hiring new employees can be tricky. A mound of paperwork must be completed, from verification forms and tax forms to other required government documentation. There is a lot that both the employer and employee must do before work can begin. However, one thing that many businesses often overlook during this process is an employment contract. As a business, you are taking a risk on someone when you hire them. They might be involved with handling money or customer service or have another important role that determines the success of your business. As a result, it is best to protect yourself, your business, and your employees with a legally binding contract. 

While not all employment relationships warrant a contract, and they aren't a legal requirement, it is best to cover as many bases as possible with your business. In many cases, you will find that most part-time employees and others don't have written agreements. However, without spelling out roles, responsibilities, payment, expectations, and other vital aspects of the job, you might leave yourself open to numerous issues. An employee contract is a written agreement between you and your employee outlining the entire relationship and acknowledging set terms. A contract obliges both parties to always act in good faith and deal fairly with each other.

To craft a solid, legally binding agreement, you may need to seek employment contract advice from a qualified lawyer or another litigant. Drawing up employment contracts is a worthwhile investment that helps prevent many issues or possible disputes in the long run. Let's take a look at some employment contract tips. 

Describe the nature of the relationship.

When you offer someone a job, their employment will either be "at-will" or term-based. Most employment agreements are known as "at-will" opportunities unless laws or regulations restrict this. "At-will" terms mean that the relationship is terminable at the will of either party without regard to the quality of performance of either party. If there is not a definite term of employment established, an "at-will" contract allows either you or the employee to walk away at any time. However, employees can't be fired for unjust or illegal reasons.

Outline roles and responsibilities.

A good employment contract includes basic details such as job title, location, full- or part-time status, and a general job description. Outlining the role and responsibility of the employer and employee ensures that everything is clear from the moment employment begins. You might also include an agreement to abide by and follow any policies and procedures contained in a separate policy manual. This will make sure that both parties understand what the job is and how it is supposed to be carried out.

Specify payment terms and benefits.

Payment and reimbursement are areas where disputes are likely to arise without a written agreement. An employment contract should include the rate of pay and frequency of payments. Additionally, you will also need to include any reimbursement policies, incentives, bonuses, or equity opportunities. Aside from payment terms, it might also be beneficial to include any employee benefits such as health insurance that you plan to offer. Outlining payment and benefits can help mitigate any disputes or misunderstandings.

Explain termination policies.

If employment is terminated, you'll want to ensure that you have solid reasoning or justification. Typically, you will define a termination for cause provision in the contract and outline how and why the employment relationship might be terminated. When you include this in the employment contract, you are making clear how this provision works, and both parties agree. This could also help to bolster your case later if a former employee raises a concern about termination.

Each business is unique and will require its own specific terms and conditions in an employment contract. Having an employment contract will help prevent numerous issues that could arise and clarify the responsibilities of both you and your employees. You should seek legal advice to ensure that your contracts are appropriate.