How Do You Write Up a Contract of Employment


In this article you'll find a summary guide for how to write a contract of employment, provided by good example to show you in practice.

Writing an Employment Contract

If you are hiring someone new or taking on a new job yourself, the only way to prevent misunderstandings and to ensure that both employee and employer are on the same page is to draft an employment contract. From duties to benefits, an employment contract outlines everything an employee needs to know to understand his role, responsibilities and compensation package and to successfully meet the expectations of the employer.

Indicate for whom the contract lies. Include the contact details for both the employee and the employer. Don't forget to provide the legal name of both the employee and the employer or company and confirm that the address, telephone number and e-mail address are up-to-date and complete for each party.

Provide an overview of the employment conditions. The stated terms and conditions must contain the dates of employment, compensation, position and duties. The more specific you are in your employment contract, the smaller the chance that yo'll have misunderstandings later.

Explain the policies and procedures for requesting vacation time, allowances, sick leave or leave. Instruct the employee with whom you want to speak and note down all forms that must be completed. Also indicate the extent to which an early application for leisure time must be submitted.

Add specific agreements, statements or clauses. If you ask your employees to sign a confidentiality agreement, a privacy agreement or a statement that this is the only work that the employee will take on during the term of the contract, include these statements in the employment contract. Ask the employee to write her initials next to each statement .

Provide information about insurance benefits such as health insurance, dental insurance, disability insurance and other insurance that you offer. Make sure you clearly state the benefits for each type of insurance.

Indicate how the agreement can be terminated. Include information about shooting at cause and non-cause and the notification procedure. Make an overview of any termination packages that you offer.

Sign the employment contract. Ensure that both parties sign the contract to perform the contract. Ensure that verbal changes to the employment contract are not binding.


When the employee starts at the bottom of every page, he shows that the employee has read every page of the contract. Allow the employee time to review the contract before signing. This gives the employee the opportunity to view and ask questions. Keep the original copy for yourself in a safe place.


Failure to draw up a detailed employment contract can cause problems on the road. Having a contract offers both parties a tangible document to go back to, so that what has been agreed can be revised.

Employment contract example

The undersigned:
[Organization Trade Name], [Organization ID], represented
by person Mark Smith, hereafter referred to as the employer.


Employee John Cole, [ID Number], residing at
59 West 46th Street, New York City, NY 10036, hereinafter referred to as the employee, declare that
they have agreed the following:

The employee will be employed by the employer with effect from 1 October 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 Law of Department of Labor.

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 the 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:
  • Performing front office activities:
    • Gathering information through interviews and written requests.
    • Providing legal advice to clients, the organization or the board.
    • Possible referral of customers to other organizations for specific questions.
  • Processing applications and assignments:
    • Checking supporting documents and other data.
    • Organizing file data.
    • Checking file data for completeness, accuracy and relevance.
    • If necessary, seek advice from third parties.
    • Performing a literature review if necessary.
    • Drafting (or contributing to the drafting) of draft legal and standard documents.
    • Processing of mutations in standard documents.
    • Guard the legal period of files.
  • Legal staff public administration:
    • Preparing and / or evaluating legal policy on behalf of a colleague or supervisor. Selecting and processing data in the context of support and needs research. Processing data in, for example, graphs, tables and presentations.
  • Legal assistant business services:
    • Collecting, processing and presenting market data for management.
    • Performing promotional and marketing activities.

The employee receives a gross salary of $ 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 v acation in accordance with the wishes of the employee. The employer can deviate from this for serious reasons.
The accrued but not enjoyed statutory vacation days expire six months after the end of the calendar year in which those days are accrued.
The extra-statutory vacation days expire after 5 years at the time of the last day 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 the month of 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:

a. has lasted less than five years: one month;
b. has lasted five years or more, but less than ten years: two months;
c. has lasted ten years or more, but less than fifteen years: three months;
d. 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 the commuting expenses of $ 0.19 per kilometer traveled.
The travel allowance is tax-free and does not form part of the employee's salary.

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 [Organization Trade Name].

Without prior written permission from the employer, the employee is forbidden for 1 year after the termination of the employment contract, within an area of ​​100 kilometers from the employer's place of business, for compensation or to not enter directly or indirectly into service at or on perform work in any way for an enterprise that manufactures, offers or trades similar or similar products or provides the same services as an employer, or performs similar or similar activities for its own account.
In the event of a breach of the non-competition clause, the employee forfeits in favor of the employer, after the employer has been informed of the existence of the violation, a direct, unenforceable penalty 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 copyrights 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 the written permission of the employer, or to make the documents and / or copies thereof available to third parties for inspection.
At the request of the employer or at the end of the employment contract, the employee immediately transfers all documents and copies as referred to above to the employer.

The employee is not 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
U.S law applies to this agreement.

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

Thus agreed, drawn up in duplicate and signed in New York, on 2 September 2019.

Employer SignatureEmployee Signature

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