Legal Documents

What is an Employment Contract?

An Employment Contract is a contract by which a company hires an employee.

The Employment Contract sets out detailed provisions on various aspects of employment.

When drafting an Employment Contract, the employer should be aware of certain statutory provisions in determining the terms of employment, for example the amount of minimum wage (if applicable), rest days, paid annual leave, statutory holidays or maximum working hours (if applicable).

Key points included

  • Details of the job;
  • Duration of the employment and duration of probation period (if any);
  • Details of the remuneration and how often the employee will be paid;
  • Entitlement to annual leave and holidays;
  • Details of the work arrangements;
  • Notice required for termination; and
  • Whether post-termination restrictions apply and, if so, the duration and geographical limit for such restrictions.

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