PeopleMuster

Employment contract template

Employment contracts carry the clauses nobody reads until there is a dispute. Ownership of work. Confidentiality. What happens on the way out.

Parties
This agreement is made on [DATE] between:
[COMPANY NAME] of [COMPANY ADDRESS] (the employer), and
[EMPLOYEE NAME] of [EMPLOYEE ADDRESS] (the employee).

1. Role and duties
The employee is engaged as [JOB TITLE].
Duties are those set out in Schedule 1 and any others reasonably assigned.
The employee reports to [MANAGER TITLE].

2. Term and hours
Employment begins on [START DATE].
The term is [PERMANENT / FIXED TERM ENDING ON [END DATE]].
Normal hours are [WORKING HOURS] on [WORKING DAYS].
Overtime is handled under [OVERTIME POLICY REFERENCE].

3. Pay and benefits
Gross pay is [ANNUAL SALARY], paid [PAY FREQUENCY] into a nominated account.
Deductions are those required by law and any the employee authorises in writing.
Benefits are listed in Schedule 2 and may be varied on [NOTICE FOR BENEFIT CHANGE] written notice.

4. Leave
Paid leave is [LEAVE DAYS] days per year, accruing [ACCRUAL BASIS].
Sick leave, parental leave and public holidays follow [LEAVE POLICY REFERENCE].
Leave is taken with prior approval except where illness prevents it.

5. Confidentiality
The employee will not disclose confidential information during or after employment.
Confidential information includes client data, pricing, source code and unpublished plans.
Company records and copies are returned when employment ends.

6. Ownership of work
Work created in the course of employment belongs to the employer.
The employee will sign any document needed to record that ownership.
Anything made before joining, and listed in Schedule 3, stays the employee's own.

7. Ending the agreement
Either side may end this agreement on [NOTICE PERIOD] written notice.
The employer may end it without notice for [GROUNDS FOR SUMMARY DISMISSAL].
On the last day the employee returns all property and hands over live work.

8. General
This agreement replaces any earlier understanding on the same subjects.
Changes take effect only in writing, signed by both sides.
Governing law: [GOVERNING LAW AND JURISDICTION].
Signed for the employer: ______________  Date: ____________
Signed by the employee:  ______________  Date: ____________

Before you send it

  • Put duties in a schedule, not clause 1. Duties change; contracts should not have to.
  • Name what counts as confidential. A clause that says everything protects nothing.
  • List prior work in Schedule 3 before signing. Afterwards it is an argument.
  • Decide governing law before the first hire in a new country, not after.
  • Give both sides a signed copy on day one. Chasing signatures in month three never works.

Questions people ask about this letter

Which clauses cause the most disputes?

Ownership of work and notice, by a wide margin. Both are cheap to get right at signing and expensive to argue about afterwards. Spell out who owns what, and say plainly how much notice each side gives.

Do fixed-term and permanent contracts need different templates?

One template handles both if clause 2 carries an end date for fixed terms. What does differ is renewal: a fixed term needs a decision before it lapses, so diarise it the day the contract is signed.

Can a contract be changed after signing?

Only in writing, signed by both sides, which is what clause 8 is for. Verbal variations get remembered differently by each party, and a pay or duties change made in a corridor conversation is the one that later goes wrong.

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