Examples of free employment contract templates

To help you grow your business, we have created a fairly simple yet reliable employment contract template in Word and PDF versions so you can use it over and over.

What's in this model?

• job description

• Salary

• Termination clause

What is an employment contract?

An employment contract (or employment agreement) sets out the terms of a legally binding agreement between an employee and an employer, such as compensation, duration, benefits, and other terms of the employment relationship. This contract is often concluded in writing, but in some cases the employer may require the contract to be recorded orally.

The law requires that all employees and employers have a written contract to define the working conditions.

What are the 3 types of employment contracts?

The three types of employment contracts are:

1. Permanent employment contract:  It is a kind of contract used for permanent employees of the company who are paid on a monthly or hourly basis.

2. Fixed-term employment contract:  This type of contract has a specific date. If a person is hired for a fixed term, the employer will use a fixed term employment contract.

3. Casual work contract:  It is a type of contract where an employee does not have to report to the office at a specific time. This contract indicates the number of working hours and other conditions that an employee must fulfill.  

What are the 5 rules to follow to conclude an employment contract?

There are 5 rules to follow when concluding an employment contract:

1. The employment contract must be in writing. 
2. A work contract must be registered verbally with the tax and customs administration if the contract is not written.
3. The employment contract must contain details of the date of hiring, the place of work and the place of residence.
4. The employment contract must indicate the duration of the contract and must be precise.
5. The employment contract must contain an agreement between the parties on all the conditions (of the place of work, working hours, salary, safety equipment, holidays, etc.).

Important Terms

What should an employment contract contain?

A contract of employment must include:

• Employee position

• Trial period details

• Professional responsibilities 

• Salary

• Other benefits

• Termination rules

• Other terms and conditions

How to write an employment contract?

An employment contract is a type of written document signed by an employer and an employee, in which they agree to abide by all the rules and regulations mentioned in the contract. He has all the rights, responsibilities and obligations of both parties during the term of employment. 

The following details should form part of the employment contract.

• Job details: all job details – rights and responsibilities.

• Designation: The designation must be clearly mentioned.

• Salary: The actual salary with all deductions and bonuses etc. must be clearly mentioned.

• Benefits: All benefits such as bonuses, tips, vacations, etc. should be mentioned.

• Probationary period: The probationary period, its deductions and the exact dates and details of the permanent employee must be part of the employment contract. 

• Departure/Termination: The rules of the company must be mentioned on the employment contract to avoid any later inconvenience