The rights and responsibilities of the Employer and Employee throughout the Employment Period are outlined in an Employment Agreement. An employment agreement is necessary to plan and organize the employment. It clarifies for Employees a variety of things, including their pay scale, bonuses, leaves, working hours, and job descriptions. The only legal document an employee possesses that can assist him in protecting his rights as an employee is an employment agreement. An employment agreement can simplify the Employees for the Employer. In case a dispute arises, this Agreement considered as a proof and a reference for the laws to which both parties are subject.
What is an Employment Contract?
A legal document known as an employment contract or employment agreement establishes worker expectations. At the same time, they are employed by a firm and lower the risk of employment responsibility for the Employer. Both the Employer and the Employee must sign it, which details the rights, obligations, and promises of each Party during the working relationship. The contract shows the terms that were settled upon when the Employee opted to accept a position.
What key provisions and terms should be included in an Employment Contract?
We’ve outlined the key terms and provisions that the Agreement has to contain. Even though this list is thorough, an employer or organization can always add additional terms and conditions to protect their employer-related interests.
The paper must be signed by both the parties to the contract i.e. Employer and the Employee.
- Date of Effect:
The Agreement’s “effective date” is the day it becomes enforceable; in this situation, the “effective date” will be the Employee’s day of hire.
- Place of Employment:
In the Agreement, it should be stated where the Employee will conduct business.
- Working Hours:
The Agreement must be very explicit about the working hours and the times when the work will be done.
- Duty allocation
The Agreement must specify the primary duty that the Employee would bear and must also include the job description that was included in the offer letter that was given to the Employee. Along with the information regarding the unit the Employee will work in, further details about the Employee’s trainer and reporting head should be given.
- Probation Period
During the hiring process, a probationary term may be agreed upon. Probationary periods are only allowed to last for a maximum of six months. When an employee is hired on a fixed-term basis, the probationary period cannot go more than 48 weeks. Employees receive standard compensation throughout this time.
- Leave provision-
The policy regarding leaves should be outlined in the contract. The specific public holidays and paid leave to which an employee is entitled each year must be mentioned.
- Notice Period
Both the Employer and the Employee are required to give notice. Except for a breach of the Agreement and fair conditions, The Agreement shall not be subject to termination by any Party immediately. In such an instance, the non-terminated Party shall be entitled to compensation.
The Agreement must include a provision stating the gross wage being given to the Employee. The contract must include a description of all salary deductions, including tax, insurance, and others. The parties should mutually agree upon the mode of salary payment.
Every Agreement must have a term, especially if it involves employment. Employers typically give their employees set conditions. It is typically for a year, although it may be renewed.
Both parties have the right to end the Agreement. The grounds for terminating the Agreement should be made very explicit.
To prevent misunderstanding, parties should clarify whether or not arbitration will be used as a first resort in any disputes arising out of Employment Agreement or in the course of the employment in general. An amicable resolution requires the consent of both parties, which may be achieved by having a well-constructed arbitration provision.
A jurisdiction provision allows the parties to a contract to expressly choose the court or other legal forum that will have the authority to decide any legal disputes between the Employer and Employee over the Employment Agreement. An Employment Agreement’s governing law provision specifies the parties’ preferred legislation. Because employment regulations differ from state to state, it is advisable to include controlling rules in the contract.
- Confidentiality clause
No employer or business wants confidential information, such as trade secrets, financial information, client information, etc., to be known to the general public or shared with rival companies. The Employment Agreement must have a Non-Disclosure clause and Confidentiality clause to prevent the Employee from divulging the information.
- Intellectual Property protection clause
Every corporation invests time and money in training employees and producing valuable business data. The Agreement must contain a clause stating that any intellectual property developed at the Employer’s premises or by using the Employer’s office intend to belong to the Employer to prevent misuse of this data, which is the organization’s intellectual property and misused by anyone.
- Non-compete clause
An Employee is not permitted to join or establish a firm or business similar to the Employer’s business during the duration mentioned in the clause.
Read more about Legal Documents Drafting And Notarization
Notarization of Employment Contract
Any agreement is affected by being notarized. After a private notary has notarized a contract, the Agreement will be enforceable since substantial evidence supports the document’s validity. But when a notary public notarizes a document, some fundamental conditions must be followed.
You may want to know the process of Supplementary Agreement Drafting And Notarization
How may Dubai Notary Public assist you?
Employment contracts should be read word for word and line for line. Employers must carefully design employment contracts that are primarily written for the needs of the business. Thus they must certainly refrain from utilizing pre-made contract forms that can be purchased at office supply shops. To prevent things from being misread or misconstrued, our drafting lawyers at Dubai Notary Public Dubai assist businesses by creating employment contracts that are thorough yet simple to comprehend.
Our legal drafting services has assisted companies in the UAE in ensuring that wording in employment contracts upholds and safeguards their interests when contested in court. Decide to start protecting your company right away. Call us to schedule a consultation with one of our skilled drafting lawyers in Dubai about drafting employment contracts and notarization of employment contract.
Hassan Humaid Al Suwaidi is a UAE Citizen and the founder of the firm HHS Lawyers. He has a vast experience of 20 years of dealing with high-value and complex notary requirements. Hassan has been involved in some of the largest legal settlements in the UAE and is commended for his ability to attain the most favourable outcomes for his clients.