A hiring contract might be the last thing you think of when interviewing prospective employees, but it shouldn’t be. A quality hiring contract is one that will lay out the terms of agreement for new employees in a way that can be clearly understood by all parties. Here are four tips for writing a hiring contract you can use again and again.
Vague phrasing can be the death knell of a hiring contract. You want yours to be specific enough to be clearly understood but not so ambiguous that it leaves people confused. Imagine that you’re the employee being hired. How would you like for your hiring contract to be phrased? Ensuring the language is clear also reduces the chances of future misunderstandings as well. Bond Street explains, “terms and conditions needs to be expressed in an easy to understand way. For example, the compensation, duration, expectations and provisions need to be understood by the employer and the employee. The employee can’t agree to something they don’t understand. This will also help with any further confusion down the line.”
There needs to be as much information as possible regarding the position. It should clearly lay out the expectations and duties of the employee. If it‘s a temporary position, your hiring contract needs to make note of the tenure. There also needs to be details regarding any benefits and an agreement for what is expected of the employee should they leave the position, such as not working for competitors for a certain number of years.
Each part of the hiring contract should be presented in a logical manner. The Business Professor demonstrates, “there needs to be a feasible structure to your hiring contract. The basic structure goes as follows: The Preamble, The Recitals, Words of Agreement, Definitions, The Action Section(s), Representations and Warranties, Covenants, Conditions, Endgame Provisions, General Provisions, and the Contract Enforceable. Every part should progress from the previous one in a way that doesn’t feel like the reader is being pulled in all sorts of different directions.” There should also be quality formatting with line spacing, headings and subheadings, and readable font.
Have it Reviewed by a Professional
Even if you feel confident in your completed hiring contract, you still want to have the contract reviewed by a professional. Hersem Law recommends, “make sure key business decisions are made correctly and future problems are avoided. All contracts should be reviewed by a lawyer to ensure that potential difficulties do not arise, especially because of their legally binding nature.”
A lawyer will give you a clear idea of what is missing, what should be revised and what should be excised. Having their professional input will help you to ensure that you have a contract that is worthy of being presented and signed. Your new employee will appreciate this as well.
Give yourself plenty of time to create a compelling hiring contract, and you’ll have a template that you can go back to for each new position that you hire for. While you’ll have to edit it as necessary, the basic outline should be the same. With these tips, you can make your hiring process all the better, as well as set the foundation for other types of business agreements.
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