If you have worked with a staffing agency or a recruiter recently then you may have encountered the term employer or employment contract. In this modern era, companies are using staffing agencies more and more.
A lot of companies prefer working with staffing agencies as it is often easier and less expensive to hire an outside agency to fill a job position.
Temp contracts are very necessary because they set out the rules for the relationship between an employer and a temporary employee.
A proper contract protects the business from liability and from paying unemployment benefits when the employees’ contract is complete.
Permanent employees are on a fixed-term contract. For employees, it simply entails that you are contracted by your employers.
Full-time permanent employees enjoy health, paid-time-off (PTO), retirement, long-term job security, sick days, unemployment benefits, and paid vacation days.
During recruiting, staffing agencies aid businesses with the hiring process, and the employees are paid on a temporary contract basis that more or less turns to a permanent employment contract when the company hires the employee full-time as a direct hire.
Businesses tend to take longer to hire full-time employees since they are more careful when they make a longer-term decision.
A skilled employment attorney who specializes in areas of employment law such as contracts and handbooks can help you both write and understand an employment contract.
While these contracts can include nearly anything the employer and employee can and should expect from each other, below are some of the most common components of an employer contract with a staffing agency.
Components of an Employer Contract With Staffing Agency
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Defined Income And Pay Rates
Whether an employee is temporary, permanent, or contract to hire, an employment contract helps to define the income and pay rates.
This information inside a document shows an agreement between the both parties about salary or wages, leaving no room for miscommunication. You can also set a fixed annual income and any relevant bonuses, or perks if any!
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Confidentiality For Employers
This is the primary interest of all the employers, especially those working with staffing agencies! Most jobs provide employees with access to confidential company data and information.
Therefore, it is necessary to add a confidentiality clause in each employee’s contract, to protect your company and business.
If an employee was to violate their employment contract in any way, their employers are bound to take legal action against them.
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Requirements After Termination
The contract should include any restrictions or mandates on an employee after leaving the organization. For instance, an employee may not be allowed to start his or her own business in the same industry within the same locale in a specified time period or work with the business’s clients independently.
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Define Clear Protocols for Staff Leave
Employees need to take different types of leave, like sick days, annual holidays, or potential maternity. Note that having information about staff leave entitlements in an employment contract means that the process for taking a leave is always consistent and legal, for all staff members.
The contract also clarifies any payments that employees will receive when they take days off work, either from the staffing agency or the third party company.
- The Schedule And Employment Period
The contract should explicitly state if employment is ongoing or for a set term. It should also include when the employee is expected to work.
Also, remember to include the number of hours the employee is expected to work and any flexible working options like working from home or remotely while out of town. If the job requires working nights and weekends, explain when and how often.
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Compensation and Benefits
Extensively outline the compensation and benefits package. It should include the annual salary or hourly rate, information about raises, bonuses, or incentives, and how these may be obtained.
Explain what the benefits plan includes — medical, dental, eye care, etc. — what percent the employer pays, and what percent the employee pays. If provided, include information about the 401(k) plan, stock options, and any fringe benefits.
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Position Related Responsibilities
One of the most varying parts of an employment contract is the section detailing employee responsibilities. This is because every job is different; therefore, the expectations for each position differ. For example, a construction contractor’s employee responsibilities aren’t the same as a salesperson’s responsibilities.
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Technology Privacy Policy
Ensure to clarify what’s OK and what’s not regarding the use of social media and email on company property. For instance, if you don’t want employees to use company computers or mobile devices to update their personal social media channels or check personal email, say so. If you don’t want employees saying anything negative about work on social media, prohibit it.
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Dispute Resolution
Although you may not want to include this, but note that such resolutions might include methods such as mediation or arbitration to solve disputes between an employee, an employer, and even the staffing agency.
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Job Information And Performance Reviews
Some key pieces of information to start with include the job title and the team or department with which the employee will work. Explain how performance will be evaluated and to whom the new hire will report.
This involves forming an overview of the employee’s performance, work, punctuality, and honest feedback from the senior employees.
While these basic elements are a good starting point, there are plenty of other things you can include to further define the role or the business relationship.
However, a skilled employment attorney who specializes in areas of employment law such as contracts and handbooks can help you both write and understand an employment contract