If we are to take a poll on what job applicants often use, which would you find to be the most used term: employment contract or employment agreement? Today’s post is set out to unravel and clarify what an employment contract means as well as employment agreement.
What is an Employment Contract?
An employment contract is a legally binding agreement between an employer and an employee outlining the terms and conditions of employment. Let’s say Mr A has just been employed by ABC Automobiles, he’s expected to have an employment contract which states terms and conditions of his employment.
Not only is Mr A given this, other employees of ABC Automobiles are also issued a copy of their employment contract.The employment contract is meant to contain details such as the job description, salary, benefits, working hours, leave entitlements, etc.
The contract written by the company serves as a framework for employment relationships, which gives employees clarity on their job roles, expectations, and how to approach and resolve issues should they arise.
What is an Employment Agreement?
An employment agreement is also written. It is defined as a written contract that is between an employer and an employee outlining the terms and conditions of employment, compensation and termination procedures. An employment agreement is considered a mutually binding agreement by both parties, serving as a framework for the employment rely. It is a bit extended to include provisions for confidentiality, non-disclosure, and intellectual property protection.
Differences Between Employment Contract and Employment Agreement
From the definitions of employment contract and employment agreement, we can identify the differences between them as follows:
Though used interchangeably, employment contract and employment agreement hold different meanings and responsibilities.
An employment contract is considered to be more formal and legally binding which focuses on the employer’s obligations and the duties of employees. On the other hand, employment agreement is broader in context as it encompasses contractual terms, mutual understanding, and expectations between the employer and employee, focusing on the overall employment relationship.
Sample of a Letter of Agreement for Employment
This is a sample of a letter of agreement for employment for an Office Administrator
Dear Cynthia Good works,
We are pleased to offer you the position of Office Administrator at Delightful Publishers, as discussed during your interview.
Below are the terms and conditions of your employment:
Terms of Employment:
Job Title: Office Administrator
Reports to: Supervisor Dele Akinrole
Start Date: Monday, December 2, 2024
Salary: N150,000.00
Benefits: Health, dental, and vision insurance
Responsibilities:
As the Office Administrator, you will be responsible for:
Managing the front desk
Answering phone calls and responding to emails
Providing administrative support to the team
Coordinating travel arrangements and meetings
Maintaining accurate and up-to-date records and files
Confidentiality and Non-Disclosure
You agree to maintain the confidentiality of all company information and trade secrets.
Termination:
Either party may terminate this agreement with 30 days’ written notice.
By signing below, you acknowledge that you have read, understand, and agree to the terms and conditions outlined above.
Signature:……………..
Date:………………
