Recruiting is often performed under tight time constraints, leading HR and hiring teams to overlook crucial elements in employment agreements (intentionally or not) to close a new hire. While it may be tempting to expedite recruitment by making exceptions in employment terms, such actions can have legal consequences if the employment agreement is not properly managed.
A crucial tool for ensuring compliance in these situations is the employment agreement checklist. This checklist serves as a comprehensive guide for HR professionals, aiding in the creation of effective employment contracts. It provides a systematic approach to address key aspects of the employer-employee relationship. In this article, we will explore the significance of an employment contract checklist and outline the essential elements it should contain.
What is an employment contract checklist?
An employment contract checklist is a compliance tool designed to assist HR professionals in creating thorough and legally sound employment agreements. The employment contract checklist serves as a roadmap to ensure no crucial details are overlooked when formalizing the terms and conditions of employment.
The employment agreement checklist can be used in digital or paper format. The checklist shall be filled by the HR person in charge of the recruitment and validated by the team leader.
Why an employment contract checklist?
The implementation of an employment contract checklist is essential for several reasons. It helps your organization to :
- Streamline the employment process in the organization to ensure consistency and fairness: Any special privileges granted to a new hire can be monitored and require upper management approval.
- Clarify expectations, responsibilities, and rights to protect both the organization and the new hire: In case of a dispute, a comprehensive checklist serves as a valuable reference, facilitating resolution and potentially minimizing legal challenges.
- Demonstrate the organization's dedication to professionalism and ethical employment practices.
The employment agreement checklist acts as a safeguard by addressing various elements, reducing the risk of disputes, and promoting transparent, mutually beneficial employer-employee relationships.
Which items are mandatory on the employment contract checklist?
Title and Duties
- Position classification
- Job title
- Job description
The items listed above must be aligned with the organization’s personnel policy and approved by management.
General employment terms and conditions
- Probation period
- Termination before/after probation (notice and process)
- Resignation (notice and process)
The items above must strictly comply with local regulations in place (and updated accordingly) and your company personnel policy. The agreement is written as per the local governing law.
Remuneration and benefits
- Base salary
- Bonus provided Health Insurance must be in line with local regulations and personnel policy
- Allowance
- Provident fund
- Annual leaves
- Other benefits provided by the company
The items listed above must be aligned with the employee’s classification and the organization’s personnel policy.
Important: the compensation provided to the employee must fit within a defined budget and be relevant to both local and internal benchmarks to ensure fairness across the employees.
