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How to Create a Small Business Employee Contract

Hiring an extra employee can help your business expand and provide better services to your customers. Many Small Business Contractbusinesses choose to create an employee contract for each new addition to the company’s team. You must generate a small business employee contract even if you are hiring an old colleague or a friend. Small business employee contracts protect your business and your employee. In addition, they let the employee know what his or her job expectations and the terms of employment are. This includes what hours the employee is expected to work and how much he or she will make while working.

Include All Basic Information in Your Employee Contract

There are certain things that you must include in your small business employee contract in order for it to be effective. For example, you have to include your employee’s starting date. You should also include your employee’s responsibilities while he or she is working for your business. The employee contract also gives you a chance to explain your employee’s compensation package. A compensation package includes benefits, medical leave, vacation time, your employee’s salary, bonuses and stock options if stocks are available. You should also include how often your employee will be paid in the contract.

You will also use the employee contract as a way to explain how many hours your new employee will be expected to work. This will ensure that there will be no confusion about anything later. If overtime is available at your business, provide more information about it in your contract. For example, you will need to explain what the pay structure is for overtime. You also need to include how pay raises are given out and how often performance reviews are done. You should also explain how much notice your new employee has to give you before he or she terminates her employment at your small business.

Use Your Employee Contract to Protect Your Business

In order to protect your business and your employees it is a good idea for you to draw up different employee contracts for each new employee that you hire. This is safer than just using the same standard contract for each employee. Each person you hire will have different compensation packages and job responsibilities based on their experience, knowledge and background. Having employee contracts that explains everything to them can build a trusting environment and that can help you keep your business active and productive. Your employee contract needs to explain everything to your new employee. It should also protect their rights and your rights. Your employees need to know that they are being treated fairly. It also gives you a chance to show that you will respect and value their efforts. Remember to include a nondisclosure agreement in your small business employee contract. Nondisclosure agreements make sure that your employees will not share any business secrets while they are working for you. You should also find out what state laws will affect your employee contract. Everything must be legal. Because of this, it may be a good idea for you to get the help of a lawyer.

2 comments

1 divanteNo Gravatar { 11.19.12 at 8:17 pm }

No matter what always think profit….

2 divanteNo Gravatar { 11.19.12 at 8:19 pm }

Always put it in your employees head to unerdstand the quality of the business



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