Employment Agreement / Job Offer Letter
Job offers and employment contracts are among the most important documents in your HR recruiting toolkit. Use this employment offer package to avoid misunderstandings and start your new hire off on the right foot.
What to include in the employment contract
Under common law, three elements are necessary to make an employment contract a contract: (1) an offer; (2) acceptance of the offer; (3) considerationâsomething given or promised in exchange by both parties. For example, an exchange of wages for work performed.
The common contents and terms of an employment contract include:
- An invitation to begin employment at your company
- Job title and employment status
- Job responsibilities and expectations (i.e. a job description)
- Start date
- End date, if it is a fixed-term contract
- Name of manager, supervisor, or other reporting relationships
- Work hours
- Probationary period
- Travel requirements, allowances, and/or relocation
- Compensation, including commission, bonuses, and stock options
- Employee benefits
- Retirement benefits (RRSP or pension contributions)
- Vacation time
- Salary increasesâ¨Intellectual property rights
- Restrictive covenants, including non-disclosure clauses, non-solicitation clauses, and non-competition clauses
- A termination clause
- An Entire Agreement clause (a clause that states that the signed contract constitutes the entire agreement between the parties, and that previous conversations, negotiations, and promises are not binding on either party.)
- A clause stating the employerâs right to amend certain parts of the contract
- The date by which the employment contract must be signed and returned
Learn more about hiring document do's and don'ts in our Job Offer Letters vs. Employment Contracts article.
