Nine Tips For Employee Contract Management
Contract management can be a complicated part of any organisation. If you’re looking for an easier way to handle an employee contract and lay out employment terms, there are a few simple tips to manage contracts.
Use a template.
Start with a basic template with a standard employment agreement. If you have several offices, using a template creates consistency with every office taking on staff with the same basic terms. Make sure the template includes basic terms that comply with industry requirements, legislation, and internal corporate policies.
Put in place proper controls.
Many companies have structured control at Head Office, with only minimal control locally. If you have to report to headquarters, having controls and processes in place helps your contracts integrate into Head Office as needed.
Be aware of customary practice.
It’s important to know the differences in contracts that may come from industry or company policy.
For example, you should know whether your employer allows a fixed term contract or only an indefinite employment agreement.
Keep up to date with employer legislation so you make sure everything is covered.
If you’re employing contract workers, make sure their contracts clearly describe the job.
The easiest way to ensure a contractor does the work you want them to, is to clearly lay out exactly what is expected of them. Include job details, timelines, schedules and methods of feedback. Be as specific as your can, and if you think, you’ll need it, build in something that says you can revise later as the project progresses.
Simplify contract creation and review process.
A lot of time in HR is spent creating contracts. Consider using a contract management system or eContracts to simplify the process and assist the HR team to create contracts with company policies and special clauses that match the job role.
With the right solution, you can easily track contractual changes during review and get easy approvals with an automated workflow.
Any change in employment law or company policy require all contracts to be updated. Moving contracts to a system that makes making these amends simpler will make it easier to keep to date.
Store contracts on the cloud.
This will save you from having to download, email or print contracts, making it much harder to accidentally send the wrong one. All parties involved with the contract will be able to see it and keep an eye on its status.
Changes can be tracked easily, with both parties easily able to see what edits have been made and by who. You can even allow staff to sign their contract in the cloud too, with electronic signatures.
Build contracts with a clause library.
Contracts can be put together much faster, using pre-approved templates and clauses. Merge the pre-approved information with the unique terms for the individual employee.
Set up automatic renewals.
If you use electronic contracts, set up reminders for when the contract is due to be renewed. This can be used to alert you of probation periods or temporary contracts nearing an end.
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