The legal forms in this chapter cover a variety of situations that arise in the area of employment. From hiring an employee to subcontracting work on a job, written doc¬uments that outline each person’s responsibilities and duties are important for keeping an employment situation on an even keel. The employment contract contained in this chapter may be used and adapted for virtually any employment situation. Of course, it is perfectly legal to hire an employee without a contract at all. In many businesses, this is common practice. However, as job skills and salaries rise and employees are allowed access to sensitive and confidential business information, written employment contracts are often a prudent business practice. An independent contractor may also be hired to perform a particular task. As opposed to an employee, this type of worker is defined as one who maintains his or her own independent business, uses his or her own tools, and does not work under the direct supervision of the person who has hired him or her. A contract for hiring an independent contractor is provided in this chapter.
General Employment Contract: This form may be used for any situation in which an employee is hired for a specific job. The issues addressed by this contract are as follows:
• That the employee will perform a certain job and any incidental further duties
• That the employee will be hired for a certain period and for a certain salary
• That the employee will be given certain job benefits (for example: sick pay, vacations, etc.)
• That the employee agrees to abide by the employer’s rules and regulations
• That the employee agrees to sign agreements regarding confidentiality and inventions
• That the employee agrees to submit any employment disputes to mediation and arbitration
The information necessary to complete this form is as follows:
• The names and addresses of the employer and employee
• A complete description of the job
• The date the job is to begin and the length of time that the job will last
• The amount of compensation and benefits for the employee (salary, sick pay, vacation, bonuses, and retirement and insurance benefits)
• Any additional documents to be signed
• Any additional terms
• The state whose laws will govern the contract
• Signatures of employer and employee
Independent Contractor Agreement: This form should be used when hiring an in¬dependent contractor. It provides a standard form for the hiring out of specific work to be performed within a set time period for a particular payment. It also provides a method for authorizing extra work under the contract. Finally, this document provides that the contractor agrees to indemnify (reimburse or compensate) the owner against any claims or liabilities arising from the performance of the work. To complete this form, fill in a detailed description of the work; dates by which certain portions of the job are to be completed; the pay for the job; the terms and dates of payment; and the state whose laws will govern the contract.
Contractor/Subcontractor Agreement: This form is intended to be used by an in¬dependent contractor to hire a subcontractor to perform certain work on a job that the contractor has agreed to perform. It provides for the “farming out” of specific work to be performed by the subcontractor within a set time period for a particular payment. It also provides a method for authorizing extra work under the contract. Finally, this document provides that the subcontractor agrees to indemnify the contractor against any claims or liabilities arising from the performance of the work. To complete this form, fill in a detailed description of the work; dates by which portions of the job are to be completed; the pay for the job; the terms and dates of payment; and the state whose laws will govern the contract.
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