The content of an employment contract determines how the mutual relationships between employee and employer are arranged. If you have been offered a job after an application round, it is of course necessary that you are critical of the contract. Does a collective labor agreement apply, for what period are you entering into the contract, what is the salary and what is the content of the employment contract composed of?
Contents of employment contract
- Employment relationship
- The term
- Reimbursements
- collective labor agreement
- Trial period and notice period
- Non-competition and non-solicitation clause
- Duty of confidentiality as content of employment contract
Employment relationship
A working relationship is defined between the employee and employer through the contract, whereby the employee must listen to the employer. This is a relationship of authority, whereby instructions or assignments must be carried out by you in such a way that the expected level of quality is met. Naturally, this must also be carried out within a limited time frame. The employer sets tasks for you in accordance with the job description on the basis of which you must perform the tasks. A refusal to perform this is in principle a breach of the contract unless it prevents a dangerous situation.
The term
There are several types of employment contracts. The following subdivision can be indicated:
Fixed-term employment contracts
These contracts are entered into with a term or when an objective has been achieved. The employee is employed until that moment, after which the contract is automatically terminated. If an employer is satisfied with the performance of tasks within a specific contract, it may be considered to switch to a contract for an indefinite period.
Employment contracts for an indefinite period
These are entered into for the long term, whereby the employee is employed permanently. It is renewed every year and the terms of the contract can be slightly adjusted. For example, consider extra wages or other compensation.
Reimbursements
Compensation must be paid for the tasks performed within a position. This compensation usually consists of:
- a gross monthly wage. The employer withholds part of the tax and premiums from this, so that these have already been paid. So you receive a net salary. Have you calculate exactly how much it will amount to;
- any surcharges in the form of a thirteenth month;
- eight percent holiday pay, which is paid out once a year;
- vacation days: per year you are entitled to at least four times the number of days worked per week. If you work full time, you are entitled to twenty days’ holiday. Please note that many professional groups include additional days, so that you can take extra vacation time. If you work part-time, it is at least four times the number of hours worked per week. If you take vacation, your wages will continue to be paid during that period.
collective labor agreement
Many fields have made agreements with employers regarding what compensation employees must have, but also what their rights are. Secondary conditions are often included within a collective labor agreement, so that everything is properly arranged. Sometimes it may happen that a certain professional group does not have a collective labor agreement, but follows a comparable collective labor agreement. Consider, for example, whether constructors follow the architects’ collective labor agreement.
Trial period and notice period
An important element of the contract is the trial period and the notice period. The trial period applies so that the employee as provider can assess whether the work suits the employee. Not everyone is suitable for every position and therefore competencies must match the tasks. If this is not the case, this may be the reason why the employee or provider believes that the contract should be terminated. A minimum of one month is used for this, but it is often four months for a standard position. Terminating a job is also subject to a statutory notice period. This is often at least one month, but the notice period for employers can be up to four months, depending on the employment history. Please note that the notice period starts on the first of the following month.
Non-competition and non-solicitation clause
An important aspect of the contract is the non-competition clause. This prescribes that you may not apply knowledge from the old employer to a new employer. There is one exception to that rule, namely if you are dismissed for business reasons, the non-competition clause will never be in force again. The employer no longer wants you to work. So pay attention to the termination agreement. Another aspect is the non-solicitation clause, which always remains in force. You may not transfer relationships related to the old employer to a new employer. That would encourage unfair competition. Always respect the non-solicitation clause as high compensation must be paid if it is violated.
Duty of confidentiality as content of employment contract
Some professional groups apply a duty of confidentiality. Everything done within the duties of the job must remain confidential. This often concerns professional and advisory professional groups that are obliged to do this. Normally you are forced to sign this and in principle it remains in force even if you are no longer employed by the company.
If you have any doubts about the included paragraphs within an employment contract, it is wise to have it checked with a quick legal check. This means you can be sure that your interests are optimally represented.
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