Employment Contract Template + Tips to Write Work Contracts

manager writing a contract
Stories
Morgane Lança
July 3 2024

Regardless of the type of job or position, an employment contract is an essential legal document that defines the terms and conditions of your employer-employee relationship. In addition to detailing the professional expectations and obligations related to the employment, these contracts also specify the rights and benefits of employees within the company.

Whether you’re hiring for the first time, or making sure your existing employment contract meets legal requirements, here are our tips and a free employment contract template to get inspired.

What is an employment contract?

In Canada, an employment contract can consist in a written or verbal agreement between an employer and an employee. This agreement has legal force and defines the rights and obligations of both employer and employee. Rights and obligations vary according to the type of company, the type of job filled, and the organizational policies in place.

It is always preferable to build and sign a written employment contract in order to ensure that the terms of employment are set down in writing and that everyone’s rights are respected.

The employment contract can be for a fixed term, an indefinite period, or temporary (for seasonal jobs, for example).

Why use an employment contract template?

Drafting employment contracts can take time and resources that you may not have available within your company. If you don’t have an HR department or knowledge of labor laws in your organization, using a free employment contract template can save you time and ensure you’re on the right track. You can also use these templates as inspiration to eventually create an employment contract that reflects the reality of the role, the organization and your company policies. For more comprehensive solutions, consider using a legal template to ensure your contracts meet all necessary legal standards and are customized to your specific needs.

Of course, no matter which model you use, we recommend that you validate the legal value and proper drafting of the document with a competent lawyer.

Essential elements of an employment contract

Regardless of the position or the industry, here are the key elements you need to include in your employment contract:

  • Identification of the parties: in the context of an employment contract, the parties are the employer and the employee. Be clear and precise in your identification and include names and contact details for each individual.
  • Job description and responsibilities: the employee’s tasks, duties, obligations and responsibilities must be detailed to communicate your expectations from the get-go.
  • Duration of contract: you should clearly state the duration of the job, and whether or not it has a definite end date.
  • Remuneration and benefits: the annual and hourly salary must be included in the employment contract, as well as the main benefits offered to the employee (paid time off, health insurance, etc.).
  • Working hours and working conditions: remember to mention the expected working hours (hours worked per day, days worked per week, flexible working hours, for example), but also the working conditions (office, remote work, hybrid work, etc.).
  • Specific clauses: specify the terms and duration of the probation period, confidentiality and non-competition conditions to be respected, and any other clauses relevant to the employee’s role and your company’s reality.
  • Termination terms and notice: it’s important to detail the conditions for terminating the contract in the event of employment termination or departure, whether the decision is taken by the employee or the employer. To avoid misunderstandings, define the notice period to be respected by each party.

Click here to get all the onboarding documents you need when recruiting new hires.

How to personalize the employment contract template

In addition to including the essential elements detailed above, you should also customize your employment contract template to suit your needs.

This customization may involve explaining the compensation system and model, working conditions specific to the company and position, and clauses specific to your organization.

For each section of the contract, make sure that all information, conditions and expectations are well defined and understood by both parties. Don’t hesitate to add sections detailing your company’s policy and expected or prohibited behaviors. In this way, you’ll be presenting your corporate values and organizational policy right from the moment the employment contract is signed.

Other essential documents for HR management

Talent management requires using a wide range of essential documents. Here are some free templates to cover all your needs: 

  • Performance appraisal template: It’s important to monitor and evaluate your employees’ performance regularly and effectively. This interactive performance appraisal template will help you conduct mutually beneficial performance reviews.
  • Onboarding checklist: Use this checklist which covers all the onboarding phases to make sure you don’t forget anything throughout the process, and to provide a memorable experience for your new hires. 
  • Exit interview template: Employee departures represent an opportunity to ask them about their experience with your company and the reasons for leaving their role. Encourage a healthy and productive dialogue right up to the end of your professional relationship with our interactive exit interview template. 

As with your employment contract, be sure to customize these free templates to suit your needs and reality!

Access your free employment contract template:

Feel free to tailor it to your organizational reality!

DOWNLOAD YOUR EMPLOYMENT CONTRACT TEMPLATE

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