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WHAT IS AN EMPLOYEE FULL-TIME AGREEMENT

An employee full-time agreement or contract is a legally binding contract that provides protection and benefits to both parties. It should be noted that not all full-time employees receive employee contracts even if they work full time and even over time. Most hourly wage employees do not have to sign employment contracts. Also, if a full-time employment contract is conditional and if the employee or employer does not meet the conditional requirements of the contract then the contract may not be enforced. For example, if an accountant signed a contract with a firm that said his or her employment would be contingent upon proof that the accountant had passed the exam and was a certified public accountant but if in fact the candidate did have  the certification as a  public accountant, then any contract between the accountant and the firm that would have been the prospective employer would not be binding.

WHEN DO YOU NEED AN EMPLOYEE FULL-TIME AGREEMENT?

An Employee Full-time Agreement is needed when an employer plans to hire a full-time employee that will not be considered as an “at will” employee. The full-time employment contract will provide the employee with a level of assurance that he or she will not be terminated without adequate cause.

As an employer, you will need an employee agreement if you have provided a lot of training and other services in your new full-time employee. For example, if an employer has paid for relocation expenses, educational and job training expenses, license and certification fees for a new employee the employer would need assurance that the employee will remain in his or her position after such a large expenditure of time and money by the employer.

You as the employer would need an employee full-time agreement if your company has a lot of trade secrets and produces a lot of products considered intellectual property. The agreement will help to protect confidentiality and to explain the consequences of a breach of confidential information.

You would also need an employment agreement to help limit the duties of an employee. The agreement will clear up any grey areas and provide guidance as to what duties and services are expected from the employee.

WHAT ARE THE MAIN ELEMENTS OF A FULL-TIME EMPLOYEE AGREEMENT

There are a lot of terms that can be included in a full-time employment contract and they differ from industry to industry and locale to locale; however, there are certain elements that must be included in virtually all full-time employee agreement.

The required elements are as follows:

  • Names and essential contact information of the employer and the prospective full-time employee: :
    This information is required for educational, credit and background checks as well as for tax forms, insurance coverage forms, and employee savings deductions plans, and in case of emergencies.
  • The effective date of the employment:
    This date is critical because the length of service is based upon this date. Health and insurance coverage and most employee benefits are based on the employee’s start date.
  • The type of employment:
    Even though this agreement is for a full-time employee there are distinctions that must be made. For example, whether the not the employee is a full time exempt or nonexempt employee and whether he or she is going to be classified as a flextime or remote full-time employee.
  • Benefits that will be provided to the employee:
    The agreement should list health benefits, savings plans, parking or transportation reimbursements, defined benefit pension plans if applicable, cafeteria plans, and work-related education and training assistance.
  • Duties of the employee along with the locale in which the work will be performed:
    This information must be expressly articulated in the agreement especially in cases where the employee is interviewed and hired in one local but is expected to work in another location. There should be no ambiguity as to where the employee is expected to report for work and at what time he or she is expected to show up for work.
  • Termination, Layoffs, Severance, and Retirement information:
    Employee contracts should clearly list grounds for termination, requirements for retirement and what to expect in terms of severance in the event of a layoff or resignation of the employee, as well as how long, an employee must work before he or she is entitled to a severance package. 

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