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This Sample Employment Contract
briefly Explains How the Terms and Conditions are Drafted

Organizations that can afford to engage legal practitioners will need little help. Other organizations may find some assistance from the explanation given in this sample employment contract.

Your internal HR or legal expertise can prepare the employment contract. Where possible, ask a lawyer to vet it.

Fixed-Term Contract
This sample employment contract does not refer to permanent appointments.

It refers to a fixed-term contract which normally is the nature of appointment of executives in senior management positions. But it can involve junior employees, too.

A CEO contract is normally a fixed-term contract. However, there are still a lot of CEOs appointed on a permanent basis.


It is one of the important matters that require careful preparation under your human resources employment plan.

It is important to keep in the mind the "approved" terms and conditions of appointment at the time you conduct the recruitment exercise.


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

Conditions under which the Contract is Made
If you have the opportunity to see sample employment contracts, you will note that the conditions under which the employment contract is made and concluded are stated usuallywith 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 your organization.

These include provisions for termination, confidentiality, compensation, reimbursements, equipments provided, breach of any term and condition and effects of the country's laws on the agreement.

Enter every item that you have agreed upon.

Execution and Stamping
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.

Both employee and employee will have their respective signature witnessed.

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 isever renewed.

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