Table of Contents
What are the steps?
- Issue a Job Offer Letter
- Create an Employment Contract
- [Optional] Generate a Flexible Working Policy
Hiring new employees requires careful planning and proper paperwork. Although hiring a new employee can differ from organization to organization, the most common hiring process is:
- Preparing job description
- Advertising the vacancy across different platforms
- Reviewing application and selecting a pool of qualified candidates
- Assessment test and In-person interview
- Background checks
- Job offers and Onboarding
What paperwork is required for a new employee?
Once the recruitment process is over, an employee should receive a job offer letter. After signing and agreeing to the terms and conditions in the job offer letter then a valid employment contract is extended to the employee for final onboarding. A flexible working policy has become particularly useful during the Covid-19 pandemic to adapt to the ever-changing circumstances of today’s workforce. Previously, flexible working policies were often used to provide supportive arrangements for employees needing to care for relatives. Now, they are frequently used to accommodate government mandates on working from home as well as flexible working times for home schooling requirements. This policy in particular can greatly aid in reducing stress and increasing productivity, which ultimately helps retain employees over time.
Need to draft one now?
Why is an employment contract important?
An Employment Contract is signed by both parties ie; employee and the employer. It binds both parties to their duties and responsibilities and helps minimize any future disputes. To expand on these points, here are the three major reasons you need an employment contract:
- Job security for the employee and labour certainty for the employer
This is the most important purpose of an employment contract. An employment contract includes the time frame for how long an employee is contracted to stay with the company. This is effectively a job guarantee for employees as long as they do not violate the terms of the contract. It also contracts the employee to the employer for a certain period of time with notice periods built in so employers are not left in the lurch if an employee decides to leave the role.
- Dispute resolution
A well-drafted employment contract sets out the working hours, benefits, holidays allowance, and sick pay for an employee thus reducing the possibility for disputes between two parties should problems arise. Employers also have a responsibility to pay their employees on time and the employment contract should clearly state the salary, bonuses, and benefits and when an employee can expect to be paid.
- A better understanding of duties
The contract should have a clear description of all the duties expected of an employee. This sets out what an employee needs to deliver and will be easily referenced in the contract if the employee is consistently underperforming and not meeting the agreed expectations.
An employment contract protects both employees and employers by stating the job expectations and salary upfront. This way if there are any discrepancies in service or payment, it can often be handled by simply referencing the contract.
Client case study
Omar Taheri from Spark Plus Pte Ltd uses Zegal to hire a new employee.