Components of The Job Agreement Letter


Job Agreement letter (employment contract) is a contract between an employee and an employer, whereby the employee undertakes towards the employer to perform the work with wages and under the employer's authority.

4 Main Elements of a Job Agreement Letter

For the existence of a job agrrement letter, therefore, at least four elements must be met:

- An agreement
- Labor
- Salary
- Authority (bond of subordination)

There is an employment contract as soon as these four elements are present in the facts, there is no employment contract if one or more of those elements is missing.

What the various components of an employment contract entail exactly is explained further below.

1. An agreement

An employment contract is a reciprocal agreement. This means that there are two parties that assume obligations towards each other. In the case of an employment contract, this is the performance of work by the employee under the authority and the pay of wages by the employer.

An employment contract is only concluded when both parties give their consent. That permission can also be oral.

Essential elements of the employment contract may not be changed unilaterally (ie without the agreement of the other party) either by the employer or by the employee.

To be legally valid, an employment contract must meet a number of validity conditions, and in some cases also a number of formal conditions.

2. Labor

The subject of the employment contract is the performance of work. The employer undertakes to provide work and the employee undertakes to perform the work entrusted to him carefully and accurately.

Work is understood to mean the work performance that someone performs under the authority of another and for which he receives compensation.

There is therefore work within the meaning of the Employment Contracts Act as soon as someone performs an employment under the authority of another and is rewarded for this, even if the employment is of short duration or the amount of compensation granted is limited.

The work doesn't necessarily have to be precisely defined. Nevertheless, it's always recommended to specify the function to be performed in the agreement.

3. Salary

Wage, in the general sense of the Employment Contract Act, is the consideration for the work that's carried out in performance of an employment contract.

Without a wage there can be no question of an employment contract. The agreed wage must be determined (for example, a fixed monthly wage) or be measurable (for example, piece wage, hourly wage, commission).

The Employment Contracts Act doesn't contain any standards with regard to the wage level. The parties can therefore freely negotiate the size of the wage.

In doing so, they must nevertheless take into account the binding minimum wages that have been laid down in a generally binding collective agreement (wage scales).

In sectors where such wage scales are set, the parties may not stipulate in their employment contract wages that are lower than the applicable minimum wage scale set in the sector for the employee's job.

If the wage isn't explicitly stated in the employment contract, the applicable minimum wage scale in the sector applies.

If no wage scale has been determined within a sector or within the company, the employee is entitled to the guaranteed average minimum monthly income, possibly adjusted according to age.

With regard to the payment of wages, specific protective rules are laid down in the wage protection law.

4. Authority

The existence of an employment contract requires that the employee performs his work in a ratio of subordination to the employer. There can therefore be no employment contract without an authority relationship.

Working under authority is what distinguishes the employee from the self-employed person.

The Court of Cassation describes the exercise of authority as "an essential element of the employment contract that implies for the employer the authority to lead the employee and to supervise the work of the employee".

In other words, authority entails the authority for the employer to supervise the employee (command law) and to supervise the execution of the orders (control and disciplinary law).

The authority doesn't necessarily have to be exercised effectively and permanently. It's sufficient that the employer has the legal option to exercise effective authority at any time, without it being necessary for him to do so strictly and continuously. The authority relationship therefore exists as soon as authority can actually be exercised.

In practice, it's n't always easy to distinguish between an employee and a self-employed person. A number of criteria have therefore been laid down in the Labor Relations Act to determine the nature of the employment relationship.

Example of an employment contract (job agreement letter)

The undersigned:
Model xxxx, established at xxxx, represented by person xxxx, hereafter referred to as the employer.


Employee xxxx, born in xxxx, residing at .... xxxx, hereinafter referred to as the employee, declare that they have agreed as follows:


The employee will be employed by the employer with effect from 1 February 2019.

Duration of employment contract

The employment contract has been entered into for a definite period of time for a period of 1 year.

The employment contract ends by operation of law, without any cancellation being required, after the expiry of 1 year.

The employment contract ends in any case, without any cancellation being required, at the moment that the employee reaches retirement age according to the labour Law.


A probationary period of one month applies to this employment contract. The probationary period starts at the start of the employment contract.

Scope of employment contract

The employment contract is entered into for an average of 40 hours per week.

Working hours

8 hours will be worked per day. Work will be done on Monday to Friday from 9 a.m. to 5:30 p.m. The employer has the right to change working hours in consultation with the employee.

Function and Activities

The employee joins the employer in the position of legal assistant and will perform the following activities: drafting agreements.


The employee receives a gross salary of $(USD) 25 per hour.

The employer will pay the wages and other allowances, after deduction of the legally required deductions, at the end of each calendar month by transfer to the bank account to be specified by the employee.

The employer provides the employee with a payslip with every payment of wages.


The employee is entitled to 25 days' leave with pay per year.

The employer is obliged to give the employee the opportunity to take vacation days. The employer must determine the vacation in accordance with the wishes of the employee. The employer may deviate from this for serious reasons. The accumulated but not enjoyed statutory vacation days expire six months after the end of the calendar year in which those days are accumulated. of the calendar year in which the vacation entitlement arose.

Holiday bonus

The holiday allowance amounts to 8% of the gross annual salary received over the period from 1 June up to and including 31 May. Payment of the holiday allowance takes place at the latest in May.


If circumstances within the company make overtime necessary and the employer makes a request to the employee to work overtime, the employee is obliged to work overtime.

There is overtime when the agreed weekly working time is exceeded. Overtime is permitted up to a maximum of 10 hours per week.


There is no mandatory pension scheme.


Both the employer and employee are authorized to terminate the employment contract prematurely, with due observance of the notice period.

The notice period that the employer and employee must observe is one month. The cancellation must be made in writing at the end of the calendar month.

The notice period that the employer must take into account for an employment contract that on the day of termination:

has lasted less than five years: one month; has lasted five years or more, but less than ten years: two months; has lasted ten years or more, but less than fifteen years: three months; has lasted fifteen years or more: four months.

The notice period that the employee must observe is one month.

Travel allowance

The employee receives a reimbursement for commuting expenses of $ 0.19 per kilometer traveled. The reimbursement of travel expenses is untaxed and doesn't form part of the employee's wage.

Incapacity for work

In the event of occupational disability, the employee is obliged to report this immediately to the employer, at least before the start of the working day.

The employee is obliged to adhere to the health regulations that apply within the company. These rules are appended to this employment contract and form part of the employment contract.

Competition clause

Without prior written permission from the employer, the employee is prohibited from being directly or indirectly involved in, or cooperating in, activities that, either during his employment or for a period of 1 year after termination thereof compete directly or indirectly with the activities of Model bv.

claimable fine of $ 500 per violation and also $ 50 for each day that the violation continues. The employer can also claim full compensation instead of this fine.

Copyright and intellectual property

The copyright and industrial property rights arising from the work and / or inventions of the employee, performed and made during the existence of the employment contract, remain the property of the employer, unless explicitly agreed otherwise in writing. All documents and / or copies thereof that have been obtained from the employer's company or its customers or clients are and remain the employer's property.

The employee is forbidden to keep the aforementioned documents in his private possession without written permission from the employer or to make the documents and / or copies thereof available for inspection by third parties. immediately terminate all employment documents and copies as referred to above to the employer.


The employee isn't authorized to sign on behalf of the employer, unless the employer has given prior written permission for this.

Labor and business rules

The employee declares to be aware of and to agree with the applicable labor and business rules. These rules are appended to this employment contract and form part of the employment contract.

Applicable law

US law applies to this agreement.

All disputes that arise as a result of this employment agreement will be settled by the competent court.

Final provisions

The sickness regulations and the employment and company rules form part of this employment agreement and form one whole with this employment agreement.

By signing the employee declares that he / she is familiar with the content of this employment agreement and that he / she has agreed to it, as well as having received a signed copy of this employment agreement.
Employer's signature ........ Employee's signature ........

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