An employment agreement is a legal contract that establishes a formal employment relationship between an employer and an employee.
Having an employment agreement allows both an employer and employee to establish an understanding regarding the most important terms of employment such as job duties, length, compensation, termination, and general expectations. As for any contract, ensure that the contract spells out the offer, acceptance, and consideration. The following is an example of a preamble that covers those areas:
• The date of employment
• The job title and job scope
• The duration of the probation period
• The remuneration package
• The list of employee benefits
• The termination notice period
• The employee code of conduct
There are national minimum wages that you must adhere to in an employment agreement.
General Standards – Hours, Leave, Termination
When drafting an employment agreement, you must include the hours you require employees to work, the leave that they are entitled to and the reasons and conditions surrounding termination and redundancy. It is important that these standards, are included in an employment agreement so your employees are aware of their rights and the standards they are required to meet to benefit your business.
Restraint of Trade / Non-Competition Clause
When recruiting employees, it is essential to ensure that they do not perform work or share trade secrets, intellectual property and information of your business with your competitors. It is also in your best interests to ensure that employees do not leave to start a rival business and potentially poach your customers or clients.
A restraint of trade clause or non-competition clause prevents your employees from becoming a competitor or joining a competitor during their employment and even after the duration of their employment with you.
It is important that the information, ideas and property of your business is protected. When working for you, your employees may come across a number of assets possessed by your business. In order to protect such assets and ensure that they are kept private and confidential by your employees, it is advisable to include a confidentiality clause in an employment agreement.
For employers who are hiring foreign labourers, they must ensure that the employment passes or work permits are in order before employing the foreign employee. The employer will be required to pay monthly levies for certain classes of foreign employees and take note of the quotes which are imposed by law that limit the number of foreign employees an employer gets to employ.
Every employment agreement is different and it is important that your employment agreements reflect the interests of your business, the type of business you have and the employees you recruit.