Hiring Agreement – Contractual Elements

Here’s a step-by-step guide on writing a hiring contract from scratch. 

When starting a contract, we must first provide a quick overview of the project. It should not be long, but it should outline what we want to accomplish and our project goals. Here’s a tip: You can even personalize it with the wording you used in your business proposal. 

While many overlook this section, it is essential as it provides an in-depth reflection of the project’s stage. This is when we define what the role of the employee will be in the project or company and what their duties and tasks are. Before hiring a new colleague, ensure you have discovered your needs within your company. Only then can you communicate them to your future employees so that there will not be any confusion when including these details in the contract.

This is one of the reasons we all want to enforce a contract – to ensure there’s a mutual agreement regarding how and when the payment will be transferred. Consider the payment method options, whether there will be any payment milestones, and if there is an upfront deposit requirement. 

In this section, we must specify the start and end dates for when the project will take place – if it’s a freelancer or collaborator contract. However, if it’s simply a hiring contract, we need to include when the employment will begin and if there is any probationary period. Even more so, we must include the number of revisions and when they will occur. 

Try to be careful when constructing this section, as the language used can immensely affect your stand in the event of any disagreements. You need to be as thorough as possible in order to avoid any type of dispute that can end up in a lawsuit. Any business will need its employees to have original ideas that the company owns, so the content and ideas you are provided with don’t end up in multiple places. This ensures that your employees will not go and sell anything to your competition or profit from them. 

Let’s face it – no one likes to discuss termination. But we must never forget to prepare for it anyway. Make sure you specify the termination plan: if there is any notice period, any potential fees, and other conditions that must be met so that the agreement is considered terminated. We recommend you work closely with a lawyer so that your clause will hold up in a court of law for potential disputes. 

While working closely with someone, they might be subject to discovering potentially sensitive information that could jeopardize us or our project. So, to protect ourselves, this confidentiality agreement is a must on any other contract. 

This clause can be encountered after the signing of the contract and specifies and facilitates the transfer of the rights and responsibilities to a third party that has not been part of the initial contract signing. The party that is making the assigning is named the assignor, while the third party that participates in the process is defined as the assignee.

This type of contract is usually structured as a letter that ends the employment relationship between an employer and an employee. The purpose of this letter is to dismiss an employee from the specified job, sending them a formal notification regarding the termination of the employment contract. 

This clause is used to highlight and describe the limitations of liability that might occur for one or both parties that are involved in the contract. One of the most common clauses of this type is the limitation clause. 

A Non-disclosure Agreement (NDA) is a contract that prevents someone from disclosing confidential information. It can be straightforward or include complex clauses and provisions. For example, an NDA might only require the disclosure of confidential information to one party while allowing the other party to freely use the disclosed information.

This is the final step to finalizing the deal! Ensure you have dotted lines for when you and your client officially sign off. 

Yet, it is useful to know that these clauses might differ regarding the type of contract you need.