Sample Employment Contract That Briefly Explains
the Terms and Conditions

Sample employment contract is for the purpose of providing some help in the preparation of employment contracts or for that matter, to improve existing employment contract.

You may need this if you help manage an employment office.

Organizations that can afford to engage legal practitioners will need little help. Other organizations may find assistance from the explanation given in any sample employment contracts found at various places.

Your HR specialists or internal legal expertise can prepare the employment contract. Where possible, ask a lawyer to vet, verify or check it against existing legal provisions.

The sample employment contract found here is not referring to permanent appointments

A Fixed-Term Contract refers to a fixed-term contract which is usually the way executives in senior management positions are appointed. But you can also use it for junior employees.

A CEO contract is normally a fixed-term contract. However, there are still a lot of CEOs appointed on a permanent basis. This limits the freedom of organizations to make important changes to the management team.

An employment contract is one of the important matters that require careful preparation under human resources employment plan. This helps avoid complications including matters having legal implications.

It is important to keep in the mind the "approved" terms and conditions of appointment at the time you conduct the recruitment exercise. The approved terms and conditions refer to terms and conditions agreed to by the directors and or top management.

It is preferable to have a copy in hand when conducting job interviews.

Parties to a Contract
The commencing paragraph names the parties to the contract, namely, the employee and the employing organization with their respective address included.

The employment may take the form of a fixed term contract, where the duration of employment is clearly stated. It has a starting date and an end date. Some organizations may go for permanent appointment, using the usual form of a letter of appointment.

Conditions under which the Contract is Made
If you have the opportunity to see any other sample employment contract, you may notice that the conditions under which the employment contract is made and executed are stated usually with the commencing words "WHEREAS" under "Recitals". Here, the parties also state that there is an intention to create legal relations.

Terms and Conditions of Appointment
These form the major portion of the employment contract between the employee and organization. You can see this on sample employment contracts.

The terms and conditions include clauses / provisions for:

  • Termination,
  • Confidentiality,
  • Compensation,
  • Incentives,
  • Reimbursements,
  • Equipment provided,
  • Breach and effects of any term and condition,
  • Effects of the country's laws on the agreement,
  • Limitation as to future competition

Remember to make entries of every item agreed between your organization and the employee. The contract may include an option to renew or extend the duration of the employment. This may have legal effect that you may not foresee. This provision can lead to controversy.

Execution and Stamping of Contract
The employee and employer's representative will put their respective signature at the end of the employment contract. This signifies their agreement that the terms and conditions are binding for the duration of the contract. The terms and conditions are subject to change where the contract is extended.

Both employee and employee must have their signatures witnessed respectively.

Once the agreement is executed and stamped, it is practically impossible to amend the terms and conditions. Well, of course until the next time the contract is due for renewal if it is ever renewed.

Ensure that if you decide to extent the employment contract, make it a new appointment. However, if the contract is extended every time it ends, it may acquire characteristics of a permanent appointment.

Check out this Sample Appointment Letter
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