Call us today 973-442-7900


What does a good employment contract include?

On Behalf of  | Feb 8, 2022 | Employment Law

An employment contract is an important document to have for both you as the employer and the new employee you are going to bring on board.

The contract protects your business interests, explains the employer-employee relationship and provides the new hire with assurances of a suitable work environment.


The contract must include the hiring basics: the title of the position and the main responsibilities. Provide the hours of work and the location of the position.


Describe performance expectations. Include production goals and the increase in skill level you expect to see over a certain period of time. If the position is in sales, include your expectations as to sales volume and recruitment of new clients.


When you include the monetary information for the position, indicate how the company will pay: through a salary, a commission or an hourly wage. If applicable, explain how the company handles commission payments and draws against commissions.


Describe the company benefits, such as the healthcare plan, retirement plan and profit-sharing. You can also cover vacations, holidays and sick days in this section of the agreement. Additionally, make clear who pays for memberships, professional licenses or dues, if applicable.


You should explain the term of the contract and the conditions that could result in extending, reducing or terminating the agreement. An explanation of the company’s “with or without cause” termination policy deserves space in every employment contract.

Contract review

Finally, when you are drafting your employment contract, it is a good idea to present it for an attorney’s review. This is a legally binding document, and you want to ensure that it includes all the important elements and no errors.


Recent Posts



RSS Feed

Call Today To Schedule a Consultation

Contact Us Today

Find out how we can help you


150 Mineral Springs Drive P.O. Box 220 Rockaway, NJ 07866
Find out how we can help you
Scroll to Top