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Training on :

Employment Contractual
Requirements
HR Manager
Fortuna Leather Craft Ltd.
Overview
This training provides detailed guidance on how to
create, agree, vary or terminate employment
contracts.

Need - By law all workers are required to be given


Terms and Conditions of employment (written
statements). Many Employment Tribunal Claims
arise from poorly drawn up contracts in which terms
are not documented properly. Similar scenarios arise
from altering or terminating contracts without
following proper procedures.

To find out what makes an agreement binding and


what an employee is legally entitled to.
Cont..
To gain an understanding of different types of
contracts, how to avoid loopholes and
communicate policies and procedures that
support contracts youve written.

Suitable For - Managing Directors, CEOs, board


members, team leaders, heads of department, HR
professionals and managers with responsibility
for preparing, changing or ending contracts
as well as those who oversee adherence to
contracts.
Employment Contracts : What you need to
know
An employment agreement is a written,
binding contract between an employer and a
prospective or current employee that, when
properly drafted, can be a highly effective
way of protecting a company's financial and
intellectual resources.

All employment agreements are legally


binding on the employer and, therefore,
employers are best served by having them
drafted and reviewed by an experienced
employment law attorney.
Different Types of Employment
Contract
Full-Time Permanent Employment Contract

This is the most common type of employment contract.


Full-time permanent employees are often the cornerstone of a business and many
employers are incredibly reliant upon this type of worker.
This type can be simple or complicated depending upon the employees seniority
This type of contract can be based upon whether the employee being
hourly paid or salaried
working hours,
holiday entitlements,
position within the organization, and various aspects of the employees working
arrangements.

Part-Time Employment Contract

Normally, a part-time employment contract would contain much of the same information as
the contract of a full-time employee.
In the part-time employment contract, employers need to have a particular focus on the
employees working hours and pay.
It is also important to ensure that the holiday entitlement for part-time employees is clearly
and accurately reflected in the contract and meets the relevant statutory requirements.
The law protects part-time workers from being treated unfavorably on the basis that
they are employed part-time. It is important to make sure that the terms and conditions
of employment for part-time employees are comparable to those of full-time employees in
the same organisation.
Cont..
Directors Service Agreement
A service agreement is generally the most
detailed and heavy duty type of employment
contract.
Normally this document would contain specific
details about how the director should behave
within the business and the scope and extent of
their duties. Service agreements are often very
comprehensive documents.
As a director would usually have unlimited access
to a companys financial and confidential
information, a service agreement almost always
contain restrictive covenants and thorough
confidentiality requirements.
Cont...
Fixed-Term Employment Contract
A fixed-term employment contract is normally for temporary
employees.
The duration of the contract can be anything from a couple of
weeks to a few years. This type of contract can vary
dramatically in its scope and extent.

Casual Work Contract


A casual work contract is generally applicable to a person who
is classed as being a worker rather than an employee.
Workers have fewer employment rights than employees. The
casual contract is not normally a permanent employment
contract and would, for instance, be used for seasonal
workers who work only a few weeks of the year.

Consultancy Agreement
A consultancy agreement is normally used when an organisation
wants to engage the services of an individual who will not be
employed. Where an individual will be self-employed, they will
normally need to be provided with a consultancy agreement.
Basic Elements of a Contract
Position
Any employment contract should provide a prospective employee with a
clear understanding of the job requirements, including
the name of the position and the essential duties
place and hours of employment.
concise and straightforward language, leaving no doubt as to your
expectations as an employer.
Length of Agreement
It must contain elements favorable to both parties. Therefore, an
employment contract should dictate an original term of employment
and stipulate conditions that are applicable to you and your employee
to extend, reduce or terminate the contract term.
Performance
performance requirements for insertion in the contract, consider
establishing
any skills you would like upgraded during the term of the contract.
production goals you want realized and revenue enhancements you
require.
If a sales-based position, insert sales volume expectations and recruitment
of new clients. Incorporate any other performance barometers you
plan to measure and for which you will hold the new employee
accountable.
Compensation
Any prospective employee expects an employment contract that
defines compensation
specify a base wage and dictate the method of payment --
salaried, hourly or commission.
If the position involves commission payment, spell out the
percentage;
how you handle draws against commissions; and how termination of
employment affects any pending contracts.
If your company has an incentive program, clearly state its
objectives. Include how you handle expense accounts as well.
Benefits
Spell out your new employee's benefit package in the contract.
Include
any health, dental, vision or other insurances you offer. Also,
state any percentages of benefit premiums the employee has to pay.
If professional licenses, dues or memberships are necessary, make
it clear in the contract who pays for their acquisition and
payment. Also
cover other items such as holidays, vacations, stock options,
any profit sharing your company offers and retirement plans
you provide for employees.
Other Elements
If applicable, you may want to include covenants
that include non-disclosure language, non-
solicitation periods, a non-recruit agreement and
a non-compete clause. You may also consider the
inclusion of a property rights clause that
covers ownership of existing clients and
equipment, as well as any licenses, patents or
copyrights held by your company.

Termination
Although not a pleasant thought, you must cover
termination language. Specifically explain what
happens if an employee is let go with or
without cause. Ensure that you include a
definition of both scenarios and cover
severance terms that apply in each incidence.
For your participation !