Speaker 1: This video will guide you through eight steps needed to write an employment contract for your business. Employment contract drafting is a frequently requested service on the Contracts Council platform, since business owners want to make sure they are legally protected when hiring employees. If you need to write an employment contract for a new hire, this video is for you. Before we start, just a brief disclaimer. The following information is provided for educational purposes and in no way constitutes legal advice. For legal advice, we encourage you to consult a licensed attorney. We will cover the purpose of employment contracts, key terms to include in your agreement, and eight steps to follow to write your employment contract. We've also added a link below with information on lawyer pricing if you want to know the cost of hiring a lawyer. Now let's get started. Purpose of employment contracts Employment contracts are legally binding written agreements between an employer and an employee. The purpose of employment contracts is to clearly define the terms of employment, protect the rights of both parties, and ensure mutual understanding of job expectations. Without using contracts, a business can open itself up to legal issues. Some reasons why using an employment contract is important are as follows. 1. They create a clear agreement of job duties and expectations. 2. They protect both the employer and employee's rights. 3. They lessen the possibility of employment disputes. 4. They ensure compliance with employment laws. And 5. They safeguard against potential liabilities and risks. What to include in your employment contract There are common terms used in employment contracts. Here are some you will find. 1. Names of the parties. The agreement includes the names of the employer and the employee. 2. Job title and description. This describes the role and responsibilities of the employee. 3. Compensation and benefits. This specifies the salary, benefits, and other compensation details. 4. Work schedule. This outlines the working hours and days. 5. Employment duration. This states whether the employment is at will for a fixed term or indefinite. 6. Confidentiality. This protects any confidential information shared during employment. 7. Termination. This sets rules on how the employment can be terminated by either party. And 8. Dispute resolution. This details the procedure the parties can take in the event of a dispute. 8 steps to writing an employment contract Here is a list of 8 steps you can follow to draft your employment contract. 1. Review the commonly used clauses discussed earlier in this video or find a template online to use as a reference. This will allow you to know what to include. 2. Identify the key information you want to include in your agreement. This may include details about job responsibilities, compensation, and work schedule. 3. It is critical to use clear and concise language that all users can understand. 4. Once you've written your clauses, organize them so that they are logical. For example, you likely want to have the job title and description section come before the compensation and benefits section. 5. Be sure to incorporate any applicable laws and regulations that may be specific to your state or industry. Note this may require research. 6. If you are unsure about anything, consider using Contracts Council's platform to seek advice from an experienced employment lawyer. 7. Review and revise the agreement to make the language clearer and confirm you have included everything needed. And 8. Create a single document to serve as your employment contract and ensure both parties have access to it. Drafting an employment contract for your company is a vital step in protecting both the employer and employee in a working relationship. If you need help from an experienced lawyer, feel free to search Contracts Council or visit ContractsCouncil.com and post a job to get quotes from lawyers to help you. Thanks for watching.