After a successful recruitment, it is time to draft an employment agreement. You should always have a written agreement about an employment relationship. We help to ensure that this agreement is drafted correctly.
An employment agreement is an agreement between an employee and an employer regarding the key terms of the employment relationship. The employment agreement specifies, among other things, the scope of work, the compensation provided, and the schedule for the work. A good employment agreement is created when the drafter:
- makes it in writing
- considers the applicable terms of the collective labor agreement,
- adheres to statutory minimum requirements, and
- it identifies and documents other matters required to be agreed upon between its parties.
An employment agreement has to meet certain minimum requirements
Open source on lisensointimalli, jossa ohjelmiston tekijänoikeuden haltija antaa oA framework can be created for an employment agreement that suits various situations. However, the framework should be updated and modified as needed. A good standard framework includes the following minimum information and terms:
- Signatures and printed names
- Company name, Business ID, and registered office
- Employee’s name, personal ID, and address
- Start date of the employment relationship
- Type of employment: permanent or fixed-term
- Trial period and its duration
- Employee’s usual place of work
- Employee’s job title
- Employee’s job duties
- Applicable collective labor agreement (if relevant)
- Salary, payday, payment period, and possible bonuses and commissions
- Fringe benefits
- Working hours
- Annual leave and its determination
- Notice period
What else should be agreed upon?
In addition to the mandatory minimum requirements, in many cases there are certain other matters that should also be agreed upon.
For example, confidentiality should be addressed if the employee has access to sensitive information. Sensitive information may include, for instance, the company’s business plans or customers’ personal data. It is often justified to agree with the employee on the handling, confidentiality, and non-disclosure of such information. Confidentiality can be addressed through a confidentiality clause or a separate confidentiality agreement.
Non-competition agreements are also important for many employers. A non-compete clause prevents the employee from engaging in competing activities with the company or directly moving to work for a competing company. Since a non-compete clause restricts the employee’s rights, the employer must pay compensation to the employee after their employment with the company ends. The use of this clause should therefore be considered on a case-by-case basis.
As a third distinct element, intellectual property rights created by the employee during the employment relationship should be addressed. It is advisable to agree on intellectual property rights and their transfer with the employee to prevent potential disputes between the employer and the employee.
It is also important to agree on remote work. To ensure remote work proceeds in a manner satisfactory to both parties, the employer and the employee should draft a separate remote work agreement.
