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Employee Contracts

What is an employment contract?

An employee contract is a formal, legally-binding contract that outlines the terms and conditions of the employment relationship between the company and the new member of staff. Employment contracts differ between the private sector and the public sector because the objectives of each contract are changed depending.

Senior Employment Contracts in the Private Sector

Usually, employment contracts are more common in the private sector for senior employees and jobs that are more high level. This is because these types of employees generally have a lot at stake if the employment relationship doesn’t work out as it was intended to.

This is especially the case if an employee is considering leaving her current position for the position that your company is offering. It makes sense that the employee would go out of his/her way to ensure that her interests are protected.

There are so many factors that play a part in the success of the new senior employee, so an employment contract is a good way to ensure that her rights are protected and interests central.

Due to the employee stepping into a senior position, the employment contract is generally more lengthy and complex than that of a more junior position. This is because packages and incentives will usually be included so that the wellbeing of the employee is protected.

As a special effort is made to ensure that the interests of the employer are also well protected, lawyers are used on both sides for the purpose of contract negotiation.

Employment Contract Negotiation

Each employment contract is unique. If a union is not involved, then every aspect of the contract will be down to how persistent the employee and employer are when it comes to negotiation. When negotiating employment contracts, it’s recommended that a lawyer is present. From an employee’s perspective, it is better not to take risks when it comes to your career. From an employer’s perspective, if the original offer you have presented is not accepted or is met with another suggestion, it could also be beneficial to have legal representation on your side.

What can I expect to find in an employment contract?

In an employment contract you can expect to find details of what your job will entail, benefits, holidays, sickness, commissions, bonuses, profit-sharing, stocks, company phones, cars, and termination.

If you’d like to know more about employment contracts, see:

  • For Negotiating Fair Employment Contracts: The Balance

  • Key Points of an Employment Contract: ACAS

  • What Should be Included in an Employment Contract: Compact Law

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