employment contract

Employment Contracts Every Business Should Know About

Your workforce is the lifeblood of your operations and is arguably more important than any tool or equipment used for your operations as without a workforce; there’d be no one to use them in the first place. As important as the workforce is, it’s equally as challenging to find the right employees to fit the demands of your operations. It’s essential to know the different types of employment contracts to properly and accurately post job openings.

Importance of Knowing Types of Contracts

Not every part of your operation needs a full-time employee. Sometimes, market trends, projects, and other factors may affect both the duration, quantity, and skills of the workforce required. For example, if Halloween is coming up, and you need more staff for your candy and sweets production company to fill in the demand, then you’d only need to hire a certain number of staff for a specified duration — employing them full-time would end up with you having and paying more employees than you need to, and it would be much more of a trouble laying them off when you no longer need them. Additionally, posting the exact type of contract and duration in your job postings would attract fitting applicants — posting that you need only part-time workers would deter those who want full-time contracts from applying, and vice-versa. As such, let’s take a look at the many types of employment contracts your company or business can take advantage of:

Full-Time Contracts

This is among the most common types of contracts available. As such, full-time contracts offer permanent positions and hourly wages, wherein the employee is also entitled to other benefits such as vacation days, leave allowances, sick pay, and pensions. Full-time contracts generally require 35 or more hours of work per week.

Part-Time Contracts

part time worker

Part-time jobs have considerably fewer hours, and generally less pay, than full-time employees. However, the position is also often permanent and may or may not include employment benefits. Their required minimum number of hours is often stated in the contract, but some businesses may offer options of working overtime depending on the demand as well as the willingness of the employee. Most part-time employees either work another part-time job or focus on other activities outside of work such as schooling or taking care of a household.

Fixed-Term Contracts

These contracts which last for a stipulated (or “fixed”) amount of time which is agreed upon by the employer and the employee in advance. Often, fixed contract employees also enjoy similar benefits to their full-time counterparts but with few exceptions. And those working in fixed-term contracts may have their contracts extended or become full-time employees depending on their performance.

Agency Hiring Contract

You do have the option to hire your employee or workforce through an agency. Hiring through an agency is generally done for a certain period, and agency contracts’ length depends upon the specifications of the hiring company. Your company will be paying the agency for providing you with the skilled workforce, and the agency will be in charge of paying the workers and ensuring that the employees’ rights are protected. Regardless of which industry you are, whether it’s in construction or waste industry, there are many available recruiters across different industries that your company or business can partner and form a contract with.

Conclusion

Hiring can be quite a tricky and sometimes difficult process for any company or business, regardless of size and industry. Luckily, there are many types of employment contracts for you to choose from to suit the needs of your operations. So, the next time you’re hiring, try to ensure that you’re posting the right type of contract to avoid any disputes and confusions or perhaps go for a recruitment agency to help you out.