ContractsCounsel Logo

Employment Contract Checklist

Clients Rate Lawyers on our Platform 4.9/5 Stars
based on 7,581 reviews
Home Blog Employment Contract Checklist

Jump to Section

Need help with an Employment Agreement?

Post Project Now

An employment contract checklist outlines the components that describe the terms and circumstances to be reviewed before signing an employer-employee contract. Before signing the contract, all parties must thoroughly analyze and comprehend it. The purpose of an employment contract is to safeguard both employees and the company. This agreement establishes the legal relationship between the employer and the employee. Let us read the blog below to understand the employment contract checklist further.

Essential Components of an Employment Contract Checklist

An employment contract checklist may be useful in ensuring a thorough review. This checklist serves as a guide, emphasizing essential areas and terms that should be thoroughly reviewed before contract signing. A checklist can help employers and employees ensure that important aspects of the agreement are covered and that necessary adjustments or clarifications are made. The components are as follows:

Parties to the Employment Contract

The contract must identify the parties involved to avoid confusion. The personal identity number or business ID assists in uniquely identifying the parties, especially when several workers or employers have identical names. Furthermore, giving the domicile or place of business aids in establishing the jurisdiction or governing law relevant to the transaction.

  • Employer: The individual or organization that employs the employee is known as the employer. The contract should explicitly contain their name, personal identity number or business ID, residence or place of operation, and contact information. As an example:
    • Name: [Employer's Name]
    • Business ID: [Employer's Business ID]
    • Domicile or place of business: [Employer's Domicile/Place of Business]
    • Details of Contact: [Employer Phone Number and Email Address]
  • Employee: The employee is the person who will do the labor or services specified in the contract. Their full name, personal identity number (if applicable), address, and contact information should be supplied. As an example:
    • Name: [Name of Employee]
    • Employee Identification Number: [Employee Identification Number]
    • Address: [Employee's Address]
    • Details of contact: [Employee's Phone Number and Email Address]

Employment Start Date

The employment start date is when an employee begins working for a company. An important component in an employment contract indicates when the work connection begins. The contract should explicitly mention the start date in a conventional format (e.g., DD/MM/YYYY). Before signing the contract, the employer and the employee should agree and confirm the start date. It marks the starting of various rights and obligations of the parties. Any modifications or alterations to the commencement date should be disclosed and mutually agreed upon in writing.

Job Position

An employee's job title identifies the employee's function and duties. The job title should be specified in the employment contract and briefly describe the role. A well-defined job title promotes clarity and comprehension of the employee's position.

Place of Work

If the nature of the job necessitates the employee working in many locations, the contract should offer an explanation or justification for this necessity. This ensures that the employee knows their responsibilities and the extent of their job, including any travel or location-specific requirements. Clarity about tasks and work location aids in establishing clear expectations for the employee's performance and flexibility in their work arrangement.

Benefits and Compensation

An employment contract must include benefits and remuneration. An employee's financial benefits, such as pay, bonuses, commissions, and Redundancy pay, are called compensation. Health insurance, retirement plans, vacation and sick leave, and other employee benefits are examples of non-monetary advantages supplied by the business. These measures are intended to attract and retain employees, improve job satisfaction, and promote general well-being. The employment contract must precisely explain the benefits and pay parameters to maintain openness and mutual understanding between the employer and the employee.

Working Period and Overtime

Working hours and overtime are important factors in an employment contract. The contract should explicitly outline the position's typical working hours, including start and end timings and any breaks or lunch intervals. It should also state the circumstances and remuneration for any overtime work, including the pay rate and arrangements for time off in lieu. Clear rules for working hours and overtime help set expectations and guarantee fair treatment of employees while also fulfilling any legal requirements for maximum working hours and overtime compensation.

Probation Period

A probationary term is when an employee's performance and suitability for a position are assessed before their employment is permanently confirmed. The employment contract should explicitly state the probation period's rules and conditions. This covers the probationary period, performance review standards, and the repercussions of failing to fulfill expectations. During the probation phase, the employer and the employee can evaluate the working relationship and determine if it is a suitable fit. Before signing the contract, it is important to understand the expectations and ramifications of the probation term.

Termination and Resignation

The employment contract should address the terms and conditions of termination and resignation. In the case of termination or resignation, it should indicate the notice time necessary for both the employer and the employee. It should also include the reasons for termination, such as misbehavior or redundancy, and any prospective severance or notice pay rights. Clear termination and resignation rules safeguard both parties' rights and enable a fair and orderly procedure.

Confidentiality and Non-Disclosure Clause

Confidentiality and non-disclosure clauses are essential to an employment contract since they safeguard sensitive information and trade secrets. These provisions clarify the employee's responsibility to discreetly keep proprietary information, customer data, and any other private materials they can access during employment. It forbids the employee from releasing or exploiting such information for personal advantage or to the employer's damage.

Dispute Resolution

An employment contract's dispute resolution sections specify the recommended approach for resolving issues that may develop between the employer and the employee. These provisions may describe alternatives such as mediation or arbitration as an alternative to litigation. Clear dispute resolution provisions aid in establishing a framework for resolving differences fairly and efficiently, reducing the need for expensive and time-consuming legal action.

Overtime Compensation and Non-Compete Provision

Other clauses that may be added to an employment contract include night shift, Saturday, and Sunday pay, which defines additional compensation rates for labor during these periods. A non-compete provision may also be inserted, prohibiting workers from doing identical work or competing with the employer for a set amount of time after their employment expires. These clauses guarantee that employees are fairly compensated for working outside conventional hours and preserve the employer's economic interests by prohibiting employees from directly competing after leaving the organization.

Date and Signature

The employment contract should have slots for both employer's and employee's signatures. The date symbolizes the day the contract is signed and serves as a reference point for the agreement to become effective. Both parties' signatures reflect their approval and consent to the contract's terms and conditions.

Meet some lawyers on our platform

Morgan S.

6 projects on CC
View Profile

Gregory B.

138 projects on CC
View Profile

Wendy C.

37 projects on CC
View Profile

Sara S.

43 projects on CC
View Profile

Key Terms for Employment Contract Checklists

  • Compensation: Includes information on bonuses, commissions, and increases, as well as the salary, pay, or any other type of compensation.
  • Working Hours: This specifies allowances for overtime, breaks, and rest intervals, as well as the estimated working hours per day or week.
  • Probationary Term: Outlines the length of the probationary term and any constraints linked with it, if relevant.
  • Termination: Includes provisions for contract termination, such as notice periods, grounds for termination, and severance compensation.
  • Confidentiality and Non-Disclosure: Specifies any duties regarding preserving confidential information and trade secrets.
  • Intellectual Property: Clarifies ownership of intellectual property developed during employment and any relevant agreements.
  • Non-Competition and Non-Solicitation: If applicable, this limits the employee's capacity to compete or solicit clients/employees following termination.

Final Thoughts on Employment Contract Checklists

It is necessary to properly analyze an employment contract to ensure that the employer and the employee cover and understand all major parts. Both parties may guarantee that their rights, duties, and expectations are well stated and safeguarded by carefully checking the checklist described above components of the employment contract. Before signing, you must get legal counsel or professional assistance to fully understand the ramifications of the contract and make informed decisions. A well-negotiated and well-understood employment contract lays the groundwork for a pleasant and mutually beneficial working relationship.

If you want free pricing proposals from vetted lawyers that are 60% less than typical law firms, click here to get started. By comparing multiple proposals for free, you can save the time and stress of finding a quality lawyer for your business needs.

How ContractsCounsel Works
Hiring a lawyer on ContractsCounsel is easy, transparent and affordable.
1. Post a Free Project
Complete our 4-step process to provide info on what you need done.
2. Get Bids to Review
Receive flat-fee bids from lawyers in our marketplace to compare.
3. Start Your Project
Securely pay to start working with the lawyer you select.

Meet some of our Lawyers

Jane C. on ContractsCounsel
View Jane
4.9 (72)
Member Since:
October 9, 2020

Jane C.

Free Consultation
New York
18 Yrs Experience
Licensed in CT, DC, NY
Pace University School of Law

Skilled in the details of complex corporate transactions, I have 15 years experience working with entrepreneurs and businesses to plan and grow for the future. Clients trust me because of the practical guided advice I provide. No deal is too small or complex for me to handle.

Tim E. on ContractsCounsel
View Tim
4.9 (41)
Member Since:
August 12, 2020

Tim E.

Founding Member/Attorney
Free Consultation
Cleveland, OH
9 Yrs Experience
Licensed in OH
Cleveland-Marshall College of Law

Tim advises small businesses, entrepreneurs, and start-ups on a wide range of legal matters. He has experience with company formation and restructuring, capital and equity planning, tax planning and tax controversy, contract drafting, and employment law issues. His clients range from side gig sole proprietors to companies recognized by Inc. magazine.

Jeremiah C. on ContractsCounsel
View Jeremiah
5.0 (31)
Member Since:
March 5, 2021

Jeremiah C.

Partner/Attorney at Law
Free Consultation
15 Yrs Experience
Licensed in NV, TX
Thomas Jefferson

Creative, results driven business & technology executive with 24 years of experience (15+ as a business/corporate lawyer). A problem solver with a passion for business, technology, and law. I bring a thorough understanding of the intersection of the law and business needs to any endeavor, having founded multiple startups myself with successful exits. I provide professional business and legal consulting. Throughout my career I've represented a number large corporations (including some of the top Fortune 500 companies) but the vast majority of my clients these days are startups and small businesses. Having represented hundreds of successful crowdfunded startups, I'm one of the most well known attorneys for startups seeking CF funds. I hold a Juris Doctor degree with a focus on Business/Corporate Law, a Master of Business Administration degree in Entrepreneurship, A Master of Education degree and dual Bachelor of Science degrees. I look forward to working with any parties that have a need for my skill sets.

Stacey D. on ContractsCounsel
View Stacey
5.0 (32)
Member Since:
July 16, 2020

Stacey D.

Free Consultation
Grand Rapids, MI
13 Yrs Experience
Licensed in FL, MI
Stetson University College of Law

I enjoy helping businesses of all sizes succeed, from start-ups to existing small and medium sized businesses. I regularly advise corporate clients on a variety of legal issues including formation, day to day governance, reviewing and drafting business contracts and other agreements, business acquisitions and sales, as well as commercial and residential real estate issues, including sales, purchases and leases. As an attorney licensed in both Michigan and Florida, I also advise clients on real estate issues affecting businesses and individuals owning real property in either state, whether commercial, residential or vacation/investment property. I also regularly assist nonprofit organizations in obtaining and maintaining tax exempt status, and provide general legal counsel on all matters affecting public charities, private foundations and other nonprofit organizations.

Pura R. on ContractsCounsel
View Pura
5.0 (11)
Member Since:
July 22, 2020

Pura R.

Healthcare Law and Employment Expert
Free Consultation
Miami, FL
13 Yrs Experience
Licensed in FL
Nova Southeastern University

Pura Rodriguez, JD, MBA is the President and Managing Partner of A Physician’s Firm, based in Miami. She represents healthcare providers from different specialties in a broad range of issues, including contract review, business planning and transactions, mergers and acquisitions, vendor and contract disputes, risk management, fraud and abuse compliance (Anti-Kickback Statute and Stark), HIPAA compliance, medical staff credentialing, employment law, and federal and state regulations. She also assists providers in planning their estates, protecting their assets, and work visa requirements.

Jaclyn I. on ContractsCounsel
View Jaclyn
Member Since:
September 10, 2020

Jaclyn I.

Free Consultation
New York, NY
13 Yrs Experience
Licensed in NJ, NY
Hofstra University, Maurice A. Deane School of Law (J.D.)

Jaclyn is an experienced intellectual property and transactional attorney residing and working in NYC, and serving clients throughout the United States and internationally. She brings a targeted breadth of knowledge in intellectual property law, having years of experience working within the media, theater, PR and communications industries, and having represented clients in the music, entertainment, fashion, event production, digital media, tech, food/beverage, consumer goods, and beauty industries. She is an expert in trademark, copyright, and complex media and entertainment law matters. Jaclyn also taught as an Adjunct Professor at Cardozo School of Law, having developed and instructed the school’s first Trademark Practicum course for international students. In her spare time, Jaclyn’s passion for theater and love for NYC keeps her exploring the boundless creativity in the world’s greatest city!

Yoko T. on ContractsCounsel
View Yoko
Member Since:
July 22, 2020

Yoko T.

Free Consultation
4 Yrs Experience
Licensed in MN
Lewis & Clark Law School

A bilingual attorney graduated from J.D. with a C.P.A. license, an M.B.A. degree, and nearly ten years of experience in the cross-border tax field.

Find the best lawyer for your project

Browse Lawyers Now
Learn About Contracts
See More Contracts
other helpful articles

How It Works

Post Your Project

Get Free Bids to Compare

Hire Your Lawyer


Want to speak to someone?

Get in touch below and we will schedule a time to connect!

Request a call

Find lawyers and attorneys by city