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Things you need to know about Regular Employment Contract.


1. What is an Employment Contract? 

An Employment Contract (the “Contract”) is a written agreement between the employer and employee stating the terms of the latter’s employment.  The Contract contains stipulations regarding the employee’s (a) salary; (b) benefits & allowances; (c) job title; and (d) job responsibilities.

The Contract may also contain stipulations intended to protect the employer during and after the employment relationship such as (a) confidentiality of the employer’s proprietary information and trade secrets; (b) non-solicitation of the employer’s clients and employees; and (c) the employer’s ownership of intellectual property rights over the employee’s work.  

With Legal Tree you can easily create an Employment Contract with all the essential terms of the employment relationship. You may also add stipulations to further protect the employer (i.e. non-competition, non-solicitation) as discussed above. 


2. What does it mean when the employee is regular?

A regular employee is one whose employment is permanent and for an indefinite period of time.  He enjoys security of tenure and may be terminated only for causes authorized by law and/or the Employment Contract.  This is different from other types of employment such as probationary, project or fixed-term where the employment is for a fixed duration or merely tentative.


3. When do you need an Employment Contract?

An Employment Contract is used when you are hiring another person as your employee and you want to clearly outline the terms of employment.


4. How can an Employment Contract protect you?

An Employment Contract protects both the employer and employee because it puts in writing their respective rights and obligations.

For the employee the Contract clearly states the salary and any benefits he is entitled to.  At the same time the Contract describes his job title & responsibilities and informs him exactly what kind of work product is expected from him.

On the other hand, the Contract gives the employer added protection by containing stipulations to protect his interest. These include stipulations granting the employer ownership of the intellectual property rights over the employee’s work product.  Other stipulations may require the employee to keep confidential the employer’s proprietary information & trade secrets and prohibit the employee from having any conflict of interest with the employer’s business.


5. What information do you need to create the Employment Contract?

To create your Employment Contract you’ll need the following minimum information:

  1. The name, address and nationality of the employee
  2. The type of employer (i.e. individual or business) as well as name.
  3. Basic terms of the employment namely: (a) salary & benefits; (b) job title & duties; (c) place of work; and (d) working hours.

Related Documents.

Activities that involve a Regular Employment Contract sometimes use the following documents. You may be interested in them:

Document Name