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What provisions should you include in an employment contract?

On Behalf of | May 17, 2022 | Employment Litigation |

A new job offer is usually an exciting event for both the employer and the employee alike. To the employer, a new recruit means bringing in new talent that will, hopefully, boost the organization’s output. And to the employee, a job offer is an opportunity to take up a new challenge and advance their career. 

However, as soon as a new employee joins the organization, it is important that they sign an employment contract. An employment contract stipulates each party’s roles and obligations to one another.   

Here are important provisions each employment contract should come with. 

The parties

An employment contract should clearly indicate the parties to the contract. It should provide the employer’s name, address and the employee’s workstation. Likewise, it should also indicate the employee’s name, address and applicable identification number for tax purposes. 

The employee’s role

Also known as the job duties, this clause outlines the employee’s duties and expectations. This clause also includes elements like an employee probation period, performance appraisal and what happens if the employee fails to fulfill their duties. This clause may also explain whether the job will require the holder to travel as the obligations of the employer to the employee as far as fulfilling their duties is concerned. 


Every employee deserves fair pay for their work. The remuneration clause explains how and when the employee will be paid for work done. This clause may also explain if the employee will be paid per hour or on commission. It will also explain how overtime and bonuses will be paid. 

Contract termination

This clause explains how or when the employment contract will end. It outlines some of the circumstances when either party may legally terminate the employment contract. It also explains what happens if either party terminates the contract prematurely. 

An employment contract sets the terms of reference for the employer and the employee. Find out how you can nail the finer points of the employment contract without jeopardizing your rights and interests. 


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