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How to Set up a Contract of Employment

When starting a new job, one of the most important things is understanding your rights and responsibilities. This is where a contract of employment comes in. A contract of employment is a legally binding agreement between an employer and an employee that outlines the terms and conditions of the employment.

Here are some steps to set up a contract of employment:

1. Determine the type of employment

The first step in setting up a contract of employment is to determine the type of employment. Employees can be full-time, part-time, temporary, or contractors. Each type of employment has different rights and responsibilities, so it is important to understand the differences before drafting a contract.

2. Define the terms of employment

Next, the terms of employment need to be defined. This includes the job title, duties and responsibilities, working hours, location, and salary. The contract should also outline any benefits that the employee is entitled to, such as holidays, sick leave, and pension contributions.

3. Include confidentiality and non-compete clauses

Confidentiality and non-compete clauses are essential in certain industries. A confidentiality clause ensures that the employee does not disclose any confidential information about the company, while a non-compete clause prevents the employee from working for a competitor for a certain period after leaving the company.

4. Add termination and notice clauses

The contract should also include termination and notice clauses. These clauses outline what happens if the employee or the employer ends the contract early. Notice periods are usually between one and three months, but this can vary depending on the type of employment and industry.

5. Get legal advice

It is important to seek legal advice when drafting a contract of employment. This ensures that the contract complies with employment law and protects both the employer and employee.

In conclusion, setting up a contract of employment is an important step when starting a new job. By following these steps, both the employer and employee can ensure that their rights and responsibilities are protected.


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