Employment Contract Template
An employment contract is the long-form agreement between an employer and employee that sets out numbered clauses covering the position, remuneration, working hours, leave, confidentiality and termination notice. Employers use it to record the full terms of the relationship in one governing document, distinct from the shorter offer or appointment letter that precedes it.
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Use this contract to record the complete relationship once a hire has accepted an appointment, rather than relying on the shorter letters exchanged earlier. Numbered clauses make it easy to reference a specific section during a dispute, an amendment or an exit, and each clause should be checked against the rules that apply where the employee actually works.
Clause 1: Parties and Effective Date
This agreement is made between [COMPANY NAME], having its registered office at [COMPANY ADDRESS] (the Employer), and [EMPLOYEE FULL NAME], residing at [EMPLOYEE ADDRESS] (the Employee).
Effective date: [DATE]
This agreement supersedes any prior discussions or letters relating to the same appointment, except where stated otherwise.
Any reference to 'this agreement' includes its annexures and schedules.
Clause 2: Position and Duties
The Employee is engaged as [JOB TITLE] and will report to [MANAGER NAME, JOB TITLE].
The Employee will perform the duties set out in [JOB DESCRIPTION / ANNEXURE B] and any other reasonable duties assigned from time to time.
The Employee's principal place of work is [LOCATION], subject to reasonable business travel.
The Employee will devote their full working time to the Employer's business unless agreed otherwise in writing.
Clause 3: Term
This agreement is for [AN INDEFINITE PERIOD / A FIXED TERM ENDING ON DATE], commencing on the effective date above.
If fixed-term, renewal or conversion to indefinite employment will be discussed separately and confirmed in writing.
The first [NUMBER] months are a probationary period, during which either party may end the agreement on [NOTICE PERIOD] notice.
Confirmation at the end of probation will be recorded separately in writing.
Clause 4: Remuneration and Working Hours
Base remuneration: [AMOUNT] per [YEAR/MONTH], reviewed at the Employer's discretion.
Working hours: [STANDARD HOURS PER WEEK], [DAYS OF WEEK].
Any overtime, allowances or variable pay: [DESCRIBE OR STATE NOT APPLICABLE].
Payment is made [MONTHLY/BI-WEEKLY] by [BANK TRANSFER], subject to statutory deductions where applicable.
Clause 5: Leave and Confidentiality
Annual leave entitlement: [NUMBER] days per year, plus any public holidays or sick leave provided under local rules.
During and after employment, the Employee will keep confidential all non-public business, client and technical information belonging to the Employer.
Confidentiality obligations survive termination of this agreement for [PERIOD, IF AGREED].
This clause does not restrict disclosures the Employee is legally entitled or required to make.
Clause 6: Intellectual Property
Work created by the Employee within the scope of employment belongs to the Employer, unless agreed otherwise in writing.
The Employee will sign any documents reasonably needed to assign or register that ownership.
This clause applies to work created during employment and does not extend to work clearly outside its scope.
Any pre-existing intellectual property the Employee brings to the role remains their own unless separately agreed.
Clause 7: Termination, Notice and Governing Law
Either party may end this agreement by giving [NOTICE PERIOD] written notice, or pay in lieu where permitted.
The Employer may terminate without notice for serious misconduct, as defined by the policies referenced in Annexure C.
This agreement, and any dispute arising from it, is governed by the laws of [JURISDICTION], and this document together with its annexures forms the entire agreement between the parties.
Signed for the Employer: [SIGNATORY NAME], [SIGNATORY TITLE] Date: ____________
Signed by the Employee: [EMPLOYEE FULL NAME] Date: ____________
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How to use this template
- Draft each clause with input from HR and, for anything involving notice, termination or IP, a local legal advisor.
- Fill in the term, probation length and notice periods to match what your company actually applies, not a generic default.
- Attach the job description, confidentiality policy and any misconduct definitions as the referenced annexures rather than leaving clauses vague.
- Walk the new hire through the key clauses - term, pay, notice - before asking them to sign, rather than expecting them to read it cold.
- Store the signed contract securely and reissue a fresh version whenever a material term, such as pay or title, changes.
Tips
Employment Contract Template — FAQs
How is an employment contract different from an offer or appointment letter?
Does every clause in this template apply everywhere?
Can this contract be used for a fixed-term hire?
Who should review this contract before it is used?
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