The employment contract is an essential document that outlines the terms and conditions to be followed by both the employer and the employee during the employment period. It is a legal requirement for every employer to have an employment contract in place when hiring new staff.
Here are the three legal requirements of the employment contract that every employer must include:
1. Terms and conditions of employment
The employment contract must provide clear terms and conditions of employment. It should outline the job title and duties to be performed by the employee. The contract should also indicate the expected working hours, pay rate, and payment frequency. Additionally, it should state the holiday entitlement, sick leave, and other benefits offered by the employer.
2. Termination clause
The employment contract must include a termination clause that outlines the circumstances under which the employer or employee can terminate the contract. It should state the required notice period to be given by the employer or employee before terminating the contract. The clause should also indicate the grounds for dismissal and any disciplinary procedures that may be followed.
3. Confidentiality clause
The employment contract must have a confidentiality clause that protects the employer`s trade secrets, confidential information, and intellectual property. The clause should prohibit the employee from disclosing any confidential information to a third party during and after the employment period. It should also state the consequences of a breach of the clause, which may include legal action and termination of employment.
In conclusion, the employment contract is a vital document that outlines the relationship between the employer and the employee. It is a legal requirement for every employer to have a contract in place when hiring new staff. The contract must include terms and conditions of employment, termination clause, and confidentiality clause. Employers must ensure that the employment contract complies with the legal requirements as failure to comply may result in legal action and penalties.