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Drafting Employment Contract

An Employment Contract is also known as a Contract of Service. It is an agreement agreed by the employer and the employee and the terms and conditions of the contract must always be defined clearly at all times.

The terms and the conditions of an employment contract can usually be negotiated on between the employer and the employee as long as both parties are aware of the labour laws that govern the statutory terms of employment.

Below are the essential terms which are usually included in employment contracts:

• The date of employment commencement
• The job title and job scope of employee
• The hours of work required
• The duration of the probation period
• The remuneration package
• The list of employee benefits
• The termination notice period
• The employee code of conduct
• The EPF contribution

The employment contract is an important document because it safeguards the rights of the employees and ensure that they get the fair treatment they deserve. All employees, regardless of their nationality, who is under a contract of service with an employee is covered by the Employment Act.

For employers who are hiring foreign labourers, they must ensure that the employment passes or work permits are in order before employing the foreign employee. The employer will be required to pay monthly levies for certain classes of foreign employees and take note of the quotes which are imposed by law that limit the number of foreign employees an employer gets to employ.

Well prepared employment contracts will attract more talents to the company and help to expand the business. Which is all the more reason why drafting an employment contract is a task that should be taken seriously.

Employment contracts are best drafted by professional services providers because they come with the needed experience to make sure that it is done right. Professionals will also be able to better advise you on your rights and obligations as an employer.

3E Accounting understands the importance of drafting the perfect employment contracts and we are more than ready to provide you with the guidance you need to draft the perfect employment contract. For more information, contact us today.