A Century Of Legal Service

  1. Home
  2.  • 
  3. Business Law
  4.  • 6 types of employment contracts

6 types of employment contracts

On Behalf of | Mar 1, 2023 | Business Law |

When hiring workers for your business, you may consider creating an employment contract for them to read and sign. Employment contracts are agreements that define the relationship between workers and employers.

An employment contract comes in written, inferred or oral forms. In addition, they outline general responsibilities, salary/wage amounts, any benefits/incentives and other important information. Below are six types of employment contracts many companies offer.

1. Casual contracts

A casual contract states that an employer cannot promise specific work hours each week. When work becomes available, the employee can accept or reject the task. 

2. Part-time contracts

Employees who sign a part-time contract agree to work less than 35 hours per week. Part-time contracts typically don’t include any wording related to benefits since part-time employees usually aren’t eligible for them.

3. Full-time contracts 

A full-time contract targets employees working 35+ hours per week. It outlines information associated with paid time off, 401k plan, health insurance and other components of full-time employment.

4. At-will employment agreements

An at-will employment agreement grants an employer the right to terminate an employee at any moment for any reason. Every state except Montana has at-will employment laws in place. 

5. Freelance contracts

Workers — specifically independent contractors — engaging in fields like graphic design, photography and article writing sign these types of contracts. Freelance contracts contain information regarding payment terms and project details. Since independent contractors are self-employed, freelance contracts wouldn’t contain anything about retirement plans or health insurance.

6. Fixed-term contracts

A fixed-term contract spells out a specific start and end date. It applies to both full- and part-time employees. Employers can even extend fixed-term contracts depending on their individual business needs.

As a business owner, it’s good for you to know about the contract options available. If you have questions relating to employment contracts, go ahead and reach out to experience legal assistance.