Employment contract

An employment contract is a legally binding agreement between an employer and employee, in which the employee agrees to work for the employer. Such an agreement records the agreements made between the parties. Often, employment contracts are important only when a contract is terminated or a conflict exists. Therefore, before entering into a contract, have the terms thoroughly checked. Would you rather have an employment contract drawn up by a specialist? We can help you with that too!

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Types of employment contracts

Employment contract

When hiring staff, there are different employment contracts you can offer a new employee. For a start, you can choose between permanent contracts and flexible contracts. 

As an employer, it is advisable to be aware of all conditions and options. This will help you decide which type of employment contract is best suited to your company's situation and the position in question. For example, you can choose between only permanent or flexible staff, or a combination of these. 

You can choose from the following employment contracts:

  • Permanent employment contract
  • Fixed-term employment contract
  • On-call employment contract
  • Agency work employment contract
  • Agency contract
  • Model agreement (freelance)

An employment contract contains important details, such as position, duties, scope of work and salary. It is also advisable to pay attention to other terms and conditions of employment, also known as clauses. This can help tackle undesirable behaviour or potentially conflicting situations in advance, both during and after the employment contract. Agreements that have an after-effect are also called "post-contractual clauses". Below, we have listed the most common clauses.

Terms of employment in employment contract

A probationary period clause is a commonly used clause in employment contracts. It is intended to give both employers and employees the opportunity to decide during a certain period whether the cooperation is satisfactory. During this trial period, the employer can dismiss the employee without giving any reason. As an employee, during this period, you can also decide yourself to terminate the contract with immediate effect. The duration can vary between one day to a maximum of two months. 

A non-competition clause is a provision in an employment contract stating that, after the end of his employment, an employee may not work for a competitor or start his own business that is competitive with the former employer. The purpose of a non-competition clause is to protect the employer's business interests and prevent the employee from using his acquired knowledge and experience in competition. A non-competition clause may only be included if there is a compelling business or service interest and it must be reasonable in terms of duration, geographical scope and the nature of the work. Employers often use non-competition clauses, but courts look critically at their legality.

A non-solicitation clause is a clause that sets out agreements on the contact between the employee and the employer's customers or relations after the end of employment. The purpose of a relation clause is to prevent an employee from contacting the employer's customers or relations directly after leaving the employer, thus enabling competition or disclosing confidential information. Case law has shown that a non-solicitation clause is often allowed, provided it is agreed in writing and specifies the interests the employer wants to protect.

The confidentiality clause is a clause stipulating that certain information must be kept secret. This may include, for example, trade secrets, personal information or confidential data. The purpose of a confidentiality clause is to ensure that confidential information is not disseminated or leaked to third parties. It is an important measure that companies and organisations take to protect their information and ensure people's privacy. In some cases, breaching a confidentiality clause can even lead to legal action. So it is very important to take a confidentiality clause seriously and handle it carefully.

The unilateral amendment clause gives the employer the right to unilaterally change the terms of employment. This means that the employer can change working hours, salary or position, for example, without consulting the employee. This can be disadvantageous for employees, as they have no say in the changes and so they may come unexpectedly. A unilateral change clause may not just be included in a contract and must meet certain conditions to be valid. Employers should therefore handle unilateral changes carefully and employees should be alert to the presence of such clauses in their contracts.

An intellectual property clause is a contractual clause that defines the rights and obligations relating to intellectual property. This involves protecting creative and innovative products that originate from the mind of a person or organisation. Examples include inventions, texts, photos and software. The clause regulates who owns these products and who gets the rights to use or distribute them. This is important to prevent others from making unauthorised use of your intellectual property or you yourself from unintentionally infringing the rights of others. A properly drafted intellectual property clause is therefore an important agreement for many companies and creatives that ensures protection and clarity.

A probationary period clause is a commonly used clause in employment contracts. It is intended to give both employers and employees the opportunity to decide during a certain period whether the cooperation is satisfactory. During this trial period, the employer can dismiss the employee without giving any reason. As an employee, you can decide to terminate the contract yourself during this period. The duration of the probationary period varies by sector and can vary between one day to a maximum of two months. It is important to know that agreements on a probationary period clause should always be made by mutual agreement and recorded in writing.

A non-competition clause is a provision in an employment contract stating that, after the end of his employment, an employee may not work for a competitor or start his own business that is competitive with the former employer. The purpose of a non-competition clause is to protect the employer's business interests and prevent the employee from using his acquired knowledge and experience in competition. A non-competition clause may only be included if there is a compelling business or service interest and it must be reasonable in terms of duration, geographical scope and the nature of the work. Employers often use non-competition clauses, but courts look critically at their legality.

A non-solicitation clause is a clause that sets out agreements on the contact between the employee and the employer's customers or relations after the end of employment. The purpose of a relation clause is to prevent an employee from contacting the employer's customers or relations directly after leaving the employer, thus enabling competition or disclosing confidential information. Case law has shown that a non-solicitation clause is often allowed, provided it is agreed in writing and specifies the interests the employer wants to protect.

The confidentiality clause is a clause stipulating that certain information must be kept secret. This may include, for example, trade secrets, personal information or confidential data. The purpose of a confidentiality clause is to ensure that confidential information is not disseminated or leaked to third parties. It is an important measure that companies and organisations take to protect their information and ensure people's privacy. In some cases, breaching a confidentiality clause can even lead to legal action. So it is very important to take a confidentiality clause seriously and handle it carefully.

The unilateral amendment clause gives the employer the right to unilaterally change the terms of employment. This means that the employer can change working hours, salary or position, for example, without consulting the employee. This can be disadvantageous for employees, as they have no say in the changes and so they may come unexpectedly. A unilateral change clause may not just be included in a contract and must meet certain conditions to be valid. Employers should therefore handle unilateral changes carefully and employees should be alert to the presence of such clauses in their contracts.

An intellectual property clause is a contractual clause that defines the rights and obligations relating to intellectual property. This involves protecting creative and innovative products that originate from the mind of a person or organisation. Examples include inventions, texts, photos and software. The clause regulates who owns these products and who gets the rights to use or distribute them. This is important to prevent others from making unauthorised use of your intellectual property or you yourself from unintentionally infringing the rights of others. A properly drafted intellectual property clause is therefore an important agreement for many companies and creatives that ensures protection and clarity.

An ancillary activities clause is a clause that stipulates that an employee may not engage in ancillary activities during his contractual obligations that conflict with the employer's interest. The purpose of this provision is to protect the employer from competition or conflicts of interest that may arise when an employee works for several companies at the same time. The ancillary employment clause should be clearly and comprehensibly worded and should not unnecessarily restrict the employee's personal and professional development away from the employer. It is therefore important that both employer and employee are aware of the content and consequences of this clause before signing an employment contract.

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Do you have questions about the content or drafting of an employment contract? We advise both employees and employers. We help draft and review employment contracts for employers. Also for employees, we take a critical look at whether the proposed contract is legally conclusive and what possible consequences it may have. 

Frequently asked questions about employment contracts

Find answers to frequently asked questions by employees and employers about employment contracts here.

An employment agreement, also known as an employment contract, is a legal document that sets out the arrangements between employer and employee. The main difference between an employment contract and an employment agreement is that the employment contract is a written document that must be signed by both parties. It is official proof of the working relationship between employer and employee and defines the mutual rights and obligations. An employment contract includes agreements on working hours, salary, holidays and the number of contract hours. It is therefore very important that both parties carefully discuss and understand the content of the employment contract before signing it.

An employment contract is an important document. This is because it defines the conditions under which you will work and your employer's obligations. It is therefore very important that you fully understand what it says before you sign it. First of all, it is important to know what type of employment contract you have. There are different types, such as a temporary or permanent contract. Also note the working hours and the number of working hours per week, the salary and fringe benefits, such as holidays and pension schemes. Make sure all agreements and promises made verbally or in writing are actually reflected in the employment contract. Take the time to read and understand this document carefully so that there are no surprises during your work.

Yes definitely, we can help you draft an employment contract and also check existing employment contracts. Would you like help? Then get in touch with us.

A good employment contract should contain some essentials to protect both parties. First of all, the contract should provide information about the employee's position, such as the duties and responsibilities associated with the job. In addition, working hours should be specified and there should be clarity on any overtime. Remuneration and fringe benefits, such as holidays, should also be specified. Furthermore, the contract should provide information on the notice period and the duration of the agreement. Finally, laws and regulations must be taken into account, such as the Work and Care Act, which prescribes how many days an employee is entitled to leave in case of illness or pregnancy, for example. So a good employment contract is a complex document, but it ensures a transparent and sustainable working relationship between employer and employee.

In most cases, it is the employer who drafts the employment contract and offers it to the employee. However, it is important to note that both parties must agree to the contents of the contract before it is valid. It is advisable to seek legal advice when drafting the employment contract to ensure that the agreements are in line with applicable laws and regulations. 

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