What is Individual employment agreement?

Definition and examples of Individual employment agreement
By Abhishek Kathpal Updated 25 July, 2022

Just as in personal relationships, there is a need for clarity in professional associations. These are brought about by employment agreements, of which there are two types; individual and collective employment agreements. Every legally employed employee should have such an agreement before accepting a role with an employer, company, or organization.

What is Individual employment agreement

Individual employment agreement meaning and definition

An Individual Employment Agreement is a written contract between an employer and employee specifying the legal terms of their working relationship. Such agreements come into play when employees do not have a collective employment agreement or are not part of the relevant union represented in such an agreement.

What is in an Individual Employment Agreement?

  1. Names: of both employer/organization and employee

  2. Job description: a detailed description of the work an employee would be doing, the roles they would be performing, and the job title they would be holding, among others

  3. Nature of the agreement: whether or not it is an at-will employment contract.

  4. Duration of employment: the employment agreement should indicate whether the employment is ongoing or has a set duration after which a new deal could be renegotiated.

  5. Working hours: the number of days employees are required to work per week and the hours they should log.

  6. Pay and payment structure: the agreement should detail remuneration for an employee. This could be in the form of wages/salary/commission and bonuses. The remuneration system should also be agreed upon along with potential compensation for overtime.

  7. Clauses: this also includes the type of clauses present in an employment agreement, such as a non-compete. A non-compete clause prevents employees from leaving their job for a position in another company that would put them in competition with their employer. Another popular clause-like provision is confidentiality agreements.

  8. Benefits: such as health insurance, retirement plans, leave duration, holidays, etc.

Note that there might be other details present in an individual employment agreement.

About the Author

Abhishek Kathpal

Abhi is the co-founder at Longlist.io. Funded by US based OnDeck, Longlist is currently enabling 50+ businesses to increase their candidate and client reach outs, automating the workflow across stages.

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