What is Important Clauses in an Employment Contract Template?

May 8, 2024    Employment Lawyers
What is Important Clauses in an Employment Contract Template?

Employees are the heart of every business organization. It is due to their painstaking contributions that help run a business. Therefore, one must focus on the recruitment process before starting a new business venture. One must ensure that strict rules and policies are set up with the help of an employment contract lawyer within the organization to avoid conflicts and protect the employer and employee’s interests.


An employment contract is vital to any business as it helps list the several terms and conditions to be followed within the organization. Important clauses are included to avoid future disagreements and conflicts among employees.


This website blog will discuss the important clauses of an employment contract:


  • Employee’s roles and responsibilities

The employment contract should include the roles and responsibilities that the employees must follow strictly in its clauses. It helps the employees understand their clear roles and strive to achieve them with confidence and high- morale, as it will determine their salary at the end of the month. Also, it avoids conflicts and protects both staff members and employers in case of discrepancies in the future.


  • Non-solicitation and non-compete

Every organization must emphasise the non-solicitation and non-compete clause with the help of the best employment lawyers in Perth. This clause is introduced to protect the interest of the employer by ensuring that employees are not publicizing their products and working with their competitors, which can lead to a leak of the company’s trade secrets, which might negatively impact their business.


  • Probation

Most companies offer a probation period of 3 to 6 months to the new employees joining them. During this period, you have yet to truly be an official member of the organization, but your performance will determine whether you are the right person for the job. However, as an employee, you have the right to terminate the contract with a written notice if you are unsatisfied before the probation period ends. The exact time of the probation depends on the company.


  • CTC as a part of the employment contract

Before deciding to join an organization, every employee verifies the CTC and requests changes if required. This is the first clause employees look at as the remuneration they will receive at the end of the month after calculation. Also, the clause must clarify several benefits and deductions to the fixed remuneration if included.


  • Leave Policy

Employment contracts heavily focus on leave policies. Every company has their own HR policies regarding leave policies. However, every employment contract mentions the basic structure of paid and unpaid leaves, yearly leaves, sickly leaves, and many more. One can hire employment lawyers in Perth WA, to help them decide the framework of the leave policy for the employees.


  • Confidentiality

A confidentiality clause, also known as a non-disclosure agreement, is introduced to protect the personal or sensitive information of the company as well as of the employees during their term with the organization.


This clause is made to protect the company’s trade secrets and avoid a failure of their business. It is to be noted that every state has its laws regarding trade secrets and must follow the Uniform Trade Secret Act. One can hire an employment contract lawyer in Perth to help them with the process to ensure everything is by the law.


  • Termination of employment contract

Every employment contract discusses the roles and responsibilities of employees and how they should be followed strictly. Similarly, penalties or consequences are included if one fails to adhere.


A termination clause is introduced, which discusses the cases that can lead to the termination of employment by either the employee or the employer. Before passing the clause, one must confirm with the employment contract law lawyer in Perth.


  • Employee benefits

An employee benefit clause lists all the benefits and perks an employee will receive during their tenure in the company. Also, it discusses the time by which they can access the benefits. However, one should know that only the deserving receive bonuses or perks.



Hence, formulating an employment contract that includes the important clauses is time-consuming. However, with the help of an employment lawyer in Perth, you can create the perfect employment contract template that will benefit both you and the employees.

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