Sample Work Agreement Contracts: Everything You Need to Know
If you’re looking for sample work agreement contracts, know that you can draft one yourself if you are unable find one that suits your needs.3 min read
If you’re looking for sample work agreement contracts, know that you can draft one yourself if you are unable find one that suits your needs. An employment agreement documents all rights and duties between your business and a contracted employee. Such a contract could be between a 1099 or W-2 employee. An employment contract is typically reserved for:
- Short-term employees
- High-level management workers
Overall, this type of agreement is one of the most important you can use when it comes to creating an employee-employer agreement. Further, it ensures that everyone agrees on:
- Confidential Information
Most importantly, employment agreements make sure that all parties understand what’s expected of them. You should use an employment contract if:
- You intend to hire a new employee or want to detail obligations and rights of an employee and employer
- You are an employee, but your employer will not offer an agreement
Employment agreements are also called a job or employee contract. If you hire an employee, mention the type of employee they will be, such as a 1099 or W-2 worker. Under W-2, you would deduct taxes while 1099 employees must pay their own.
Creating an Agreement
If you are an employee, you should have an employee sign an agreement after he or she has filled out an application and submitted a resume. Before drafting an agreement, you should ensure that the following are discussed before documents are signed:
- Job description
The contract itself should contain essential information about your business, the new employee, and other information such as the address of the business and employee name. Additionally, you are free to add more information where necessary. For instance, you can stress a specific purpose for the role in question, such as picking up boxes or stocking shelves in a backroom. In addition, you should list any health insurance benefits if applicable.
Also, you should list certain contract provisions, most notably any wages or how you will pay your employee. You can pay your employee in the following forms:
- Salary: Fixed sum on a by-weekly basis
- Wage: Daily or hourly payment
- Commission: Determined by output or performance (most notable in the sales field)
Certain employers may choose to draft a separate non-disclosure agreement to protect company secrets or intellectual property. Ensure that you mention what needs to be kept secret before an employee signs the contract, and detail the consequences of divulging sensitive information.
Further, other companies may add a non-competitive clause, which means that employees cannot work for a competing company that’s a direct competitor. Non-compete clauses may last for about one to two years. Moreover, you should have a provision in place that determines how you and other parties can resolve conflicts.
A clause pertaining to social media is vital if you intend to have employees handle Twitter, Facebook, or any other social media outlet. Doing so allows you to retain ownership over any followers or likes involving your business.
Benefits are a crucial aspect that can attract the type of employee you’re looking for. You can offer benefits in the form of:
- Free baseball tickets
- Vacation days based on performance
When it comes to employment terms, you have the option of choosing at-will employment. At-will employment allows an employer to terminate a worker for no reason, so long as it’s legal. For instance, employers cannot invoke at-will employment by discriminating against an employee. Further, an employee may leave at any time under at-will employment. In another instance, an employee may leave if he or she finds better opportunities.
Regardless, an at-will employment clause should be mentioned in any contract so an employee does not misunderstand why he or she may be terminated. Also, an at-will clause allows the owner to make tough decisions in the form of lay-offs, so long as the decisions do not violate labor laws.
Be sure to include certain provisions, such as a 30-day notice or any severance payments to be made.
Lastly, an employment agreement should clearly state the job responsibilities associated with the position in order to prevent future miscommunication. You may use a pre-existing job description if you have one in place, but you may also summarize all key aspects of the position. Such a clause may be located under “additional duties as assigned” or a similar listing.
Do you need to find sample work agreement contracts? To find out more, submit your legal inquiry to our UpCounsel marketplace. UpCounsel’s lawyers will help you draft a sound employee agreement that all parties can adhere to, and they will ensure your interests are safeguarded legally. Also, our lawyers will stand by you if you find yourself in the middle of a legal squabble with another party.