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Last updated on 20 December 2023
An employment contract is a written agreement between the employer and employee containing the terms of the employee’s employment (e.g. salary, job responsibilities).
The contract may also contain terms such as (a) the 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.
A regular employee is one whose employment is permanent and for an indefinite period of time. The employee has security of tenure and may be terminated only for causes authorized by law and 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.
This contract is specifically for regular employees. If you need a fixed-term, probationary, or project employment contract, use the following instead:
An employment contract is used when you are hiring another person as your employee and you want to clearly outline the terms of employment.
An employment contract protects both the employer and employee because it puts in writing their respective rights and obligations.
For the employee, the contract states the salary and benefits he is entitled to, his job title & responsibilities, and the work product expected from him.
The contract may also contain terms to further protect the employer's interest. These include terms granting the employer ownership of the intellectual property rights over the employee’s work product. Other terms require the employee to keep confidential the employer’s proprietary information and trade secrets, and prohibits the employee from having any conflict of interest with the employer’s business.
To create your employment contract you’ll need the following minimum information:
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Activities that involve a Regular Employment Contract sometimes use the following documents. You may be interested in them: