What is an employee contract?
An employee contract is a signed agreement between employers and employees outlining the terms of employment, and typically includes information on salary, schedule, benefits, and general responsibilities. Depending on the position, employee contracts may include information on the duration of employment and how often employees will be required to travel.
What are the pros and cons of employee contracts?
For both parties, it's important to carefully outline and review the information contained in an employee contract. As an employer, you don't want to commit to something you can't follow through with like overpromising on benefits or being too flexible with scheduling. However, this should not deter you from creating and implementing a work contract agreement with your employees. An employment agreement letter clearly defines the terms of employment for you and your employees and prevents confusion on the job.