A Contract is a legally binding document between Company and an Individual or group of individuals or a Company represented by its authorised representative that defines and covers the obligations of the parties to an agreement. A Contract is legally enforceable and protects the injured party from the defaulting party in case of a breach of the Agreement.
A Human Resource Contract governs the relationship between employer and employee it contains the terms of hire that is extended from an employer to an employee to set the terms and conditions of their employment and is binding on both the parties. While usually a written document, these agreements can also be verbal and can incorporate express terms and terms implied by customer and practice and those incorporated by statute.
Advantages of a Human Resource & Labor Contracts
The following are different types of Human Resource & Labor Contracts:
An employee agreement is the traditional document used in relationships between employees and employers for the purpose of laying out the rights, responsibilities, and obligations of both parties during the employment period. Given its purpose, an employee agreement can be one of those vital documents utilized by an employer. The employee agreement will allow an employer to solidify the relationship with employees to make certain that the key terms of the contractual relationship are understood by each party. Examples of these key terms are:
1) Salary
2) Benefits
3) Work schedule
4) Vacation allotment
5) Restriction on confidential information
Employer benefits that are generally offered and included in an employment agreement include health insurance and 401K matching in addition to non-traditional offerings, such as vacation based on hitting performance goals.
An employee agreement will typically be reduced to a traditionally written agreement that will require the employer and employee to acknowledge and sign. That said, employers do not have to reduce every employee agreement to a written contract. In fact, more frequently then being reduced to writing, employee agreements can be implied via verbal statements or additional actions taken by either the employer or the employee. These implied agreements can take the form of company authorized memoranda, company policy and procedure, or employee handbook material.
An offer letter is a letter given by a company to an potential employee that provides key terms of the prospective employees employment.
Key terms should include the position/title, name/position of supervisor, full-time or part-time work schedule, exempt/non-exempt classifications, duties, equity, bonus/commissions, base salary, benefits, policies, at-will employment status, confidentiality/invention assignment agreements, prior employer confidential information/restrictions, and any contingencies.
A service agreement is an agreement between two persons or businesses where one agrees to provide a specified service to the other. It can also be an express undertaking of employment signed by both the employer and the employee detailing therein the explicit terms and conditions of service.
A service agreement is different from a bond. A service agreement binds both the parties to the agreement, whereas bond is one sided and binds the employee to the agreement only.
There are various types of service agreements. For instance, General Service Agreement (an agreement between a contractor and a property or a business owner to provide services like gardening and repair works); Consultant Services Agreement (an agreement between a consultant and a client that identifies the terms and conditions related to the type of consulting services that the consultant will provide); Artist Services Agreement (an agreement between a business owner, or client, and an individual to perform bookkeeping or accounting services); and Child Care Services Agreement (an agreement between a contractor/child care provider and an individual to provide child care services).
Generally, a service agreement includes the following:
1) a description of the services to be provided, and their frequency;
2) identification of the persons or categories of persons who are to provide the services;
3) Statement: what you are going to declare as true
4) fees for services;
5) a choice-of-law provision; and
6) a plan for contingency action, for example, the action to be taken by the licensee, client, and responsible persons.
The sole purpose of the employee non-disclosure agreement is to make clear to an employee that he or she may not disclose your trade secrets without permission. Lawyers recommend that employers use such agreements prior to an employee starting work. If the agreement is with a current employee, we recommend that you give the employee something of value over and above normal salary and benefits. Because HR employees have access to sensitive and confidential information, the company must be assured that HR staff won't disclose it and that discussions about the information are confined only to those who need to know it. Some HR confidentiality agreements discourage HR staff from developing friendships with workers outside the HR department. However, that's difficult to control, and it presumes that HR staff can't be trusted to separate their professional duties from their personal relationships.
In any employment relationship, it is common for employees to come into contact with confidential and proprietary information. In most cases, this information will be necessary for them to do their jobs. This information may include employee, customer, or client personal information, technical data, records, processes, plans, reports, software, prototypes, or inventions and ideas. A Confidentiality Agreement, therefore, serves to explain how to appropriately handle and treat confidential information both during and after their employment with your company.