What is an Employment Agreement?
An employment agreement is a formal contract between an employer and an employee. It details the terms of employment, including the employee’s job title and responsibilities. The agreement also lays out the employee’s obligations during the work period.
Why do you need to use an Employment Agreement?
An employment agreement is a legally binding document between an employer and its new employee. It ensures both parties are on the same page as it relates to certain job duties and responsibilities. It also provides structure to your company and is an excellent practice to utilize to protect your company from any adverse action.
When do you need to use an Employment Agreement?
An employment agreement is typically executed upon the hire of a new employee. This allows the employer to define the employee’s job title and responsibilities clearly. This can help tackle any potential issues at the front end, so there is no confusion down the road.
There are different types of employment contracts based on your company’s needs — for example, a seasonal employee agreement. A seasonal employment agreement is ideal for company’s who only need temporary employees for a short amount of time. This is most common during the holidays for holiday retail. A seasonal employment agreement can also be utilized for construction services, landscaping, snow shoveling, etc.
What are the main things that go into an Employment Agreement?
An employment agreement can be very detailed depending on the company, size, job title, and necessary protections required. However, a short-form basic employment agreement is suitable for a lot of companies as a way to document the employment relationship. A basic employment agreement should include:
- The company’s name, location, and type of business
- The full legal name of the new employee
- The employee’s primary work location
- The employee’s job title
- The employee’s obligation to protect the company’s confidential information
- The date the agreement is to become effective
What are the most common mistakes to avoid?
One of the most common mistakes is misclassifying an independent contractor as an employee. An independent contractor agreement is different than an employment agreement. There can be some serious implications for misclassifying the type of worker you have hired.
For an employee, the company withholds taxes, whereas, for an independent contractor, the company does not withhold any taxes. An employee generally works for one company where an independent contractor can work for multiple companies.
If you decide to hire an independent contractor, we have that agreement here on Formpros.com.
Do I need to use a lawyer, accountant, or notary to help me?
You can easily create an employment agreement without hiring any lawyer, accountant, or notary. Creating the form online can save you time and money. It can also cut out the hefty expense of hiring a lawyer.
What is the easiest way to create an Employment Agreement?
An employment agreement can be completed quickly on this site. Our process is convenient, easy, and efficient. You will be able to download the form as soon as you complete the questions, and your document will be tailored to fit your needs. You can also come back at any time and make any additions or revisions you see fit.
Why use our Employment Agreement generator?
- Easy to use
- Eliminates mistakes
- 100% money-back guarantee
- 100% private & secure
- Legally binding documents