Today, many people sign an employment contract with their employer when they start a job. Before signing, it is important to ensure that the clauses are correctly included and that the conditions are appropriate. In this article we will examine what to pay attention to in employment contracts.
First, let us define what an employment contract means. According to Labor Law No. 4857, an employment contract is defined as the agreement in which one party, the employee, undertakes to perform work dependent on the employer, and the other party, the employer, undertakes to pay wages.
At its core, a contract reflects the mutual expression of will by both parties to achieve a legal outcome. Employment contracts are a type of agreement that imposes obligations on both sides.
Employment contracts are important for both employers and employees. They also serve as a roadmap: initially, both parties discuss the main aspects of the job. At the start, they clarify which tasks the employee will perform, how many hours or days they will work weekly or monthly, the salary level, and other terms; these details are then included in the contract.
Because these items are included in the contract, employment agreements carry significant weight for both parties. In practice, many disputes between employers and employees arise from unclear or contested contract terms. For this reason, both sides should be well informed before concluding a contract.
One primary rule to note is that employment contracts should be in writing. While employment agreements can be made orally in general, labor law requires that contracts with a duration of one year or longer be written. Contracts shorter than one year may be verbal, but it is advisable to document them in writing for security and clarity.
Parties may draft employment contracts to reflect their mutual preferences within legal limits. During contract preparation, both employer and employee may include clauses that suit their needs, provided they are lawful. There is no undue restriction preventing either side from proposing reasonable terms.
Certain elements should appear in every employment contract. These typically include:
- Details of the employee and the employer.
- The duration or effective period of the contract.
- The employee’s probationary period, if any.
- The employee’s salary and payment terms.
- Overtime and related compensation rules.
- Termination provisions and compensation rules.
Pay is another area that requires particular attention. The salary must be clearly stated as either net or gross. If the contract does not specify this, wage matters remain ambiguous and can lead to disputes.
Dates in the contract are also important. Merely indicating the contract signing date is not sufficient, because the signing date does not automatically equal the employment start date. Therefore, the exact start date of work should be explicitly stated.
Including a probationary period in the contract is a common practice and generally favors the employer. Probationary periods are typically limited to a maximum of two months, although employers may choose a shorter period if appropriate.
The contract should also address working hours and overtime. If employees are expected to work overtime, this must be specified in the agreement. Without such a clause, the employer cannot compel the employee to perform overtime work beyond legal limits.
In addition to the contract itself, the employee’s personnel file is important. Documents and information that should be included in the personnel file prepared by the employer are:
- The signed employment contract.
- Residence or address information.
- Contact details.
- Identification information.
- Health or medical reports, if required for the job.
- Criminal record, if legally requested for the position.
- Documents showing educational qualifications.
- The employee’s résumé or CV.
- References, if provided.
- The bank account number for salary payment.
As noted above, employment contracts are crucial for both parties. Contracts should ideally be prepared with legal guidance. Dates must be clear, clauses should be written in an understandable way, and responsibilities must be accurately defined. The contract should state clearly what will happen upon termination and how any compensation will be handled. Finally, employment contracts must not contain provisions that conflict with the law.