Steps for Developing an Employee Contract


Following are the steps for developing a contract for a newly hired employee in an organization

  1. The issuance of contract is centralized at the organization and CEO/ competent authority signs all employment contracts.
  2. Upon the receipt of a completed/signed of the contract preparation request, HR unit will prepare all contracts
  3. The contract becomes a binding document only after the CEO affixes his/her signature.
  4. Employee’s contract supersedes all prior verbal or written understanding and specifies his/her initial department/unit of work, Terms of Reference (TOR), starting salary, and reference to the policy manual for permissible allowances, and benefits.
  5. The contract is a confidential document. Each contract should be made out in two original sets, one for the employee, and the other for Human Resource Unit (HRU) record.
  6. All the new employees falling under the category of permanent and fixed term basis will be given an offer letter before joining the organization.
  7. On joining, a Contract Letter will be issued, which would specify his/her category of employment.
  8. An employee on fixed-term contract can be extended, or changed to the status of permanent employee contract depending on performance, organizational needs, and available resources. Such employee may not require completing three months probationary period unless specified by the HOD.
  9. Since HRU maintains a depository of all contracts, his/her personal file will be maintained by HRU. A record of any subsequent changes in designation, salary, TOR, or performance appraisals etc. will be updated by HRU.
  10. He/she is encouraged to maintain close contact with HRU concerning contract as well as career plans at the organization.
  11. Employees are also required to inform the HRU if there are any subsequent changes in individual’s coordinates by filling in.