Drafting an employment contract

Preparing a good employment contract involves more than downloading a few templates from the internet and doing a bit of cut-and-paste.

What you want is an employment contract tailored to your type of business and to the role of the new employee.

What should you consider in a good employment contract?

The possibility of early termination of a fixed-term employment contract;
the desirability and scope of a non-compete clause and a customer and business relations clause, and possibly a prohibition on side activities;
agreeing a probationary period;
the requirements that an applicable collective labour agreement sets for the content of the contract and employment conditions;
a tailored bonus scheme or employee participation arrangement;
agreements on confidentiality and the protection of your confidential business information and intellectual property rights;
provisions on succession of fixed-term employment contracts.

Chain of employment contracts

Many employers first offer one or more fixed-term employment contracts. Within a period of three years, there may be a maximum of three fixed-term employment contracts before the last employment contract changes into an employment contract for an indefinite period. If an employment contract is continued or converted, it is wise to check whether existing agreements need to be amended and, for example, whether a non-compete clause should be agreed again in writing.

Prefer a contract for services?

If you prefer to work with self-employed professionals, freelancers or contractors, you should choose a contract a contract that does not include employment-law entitlements. To genuinely keep employment law, including dismissal law, out of the picture, it is particularly important in practice not to create a relationship of authority.

Would you like advice or do you have a question? We would be happy to advise you on a tailor-made employment contract or contract for services. Please feel free to contact us.

More information on employment law >