BlogContracts & TransactionsLegal ResourcesEmployment Agreement: If You Can Hire, You Should Contract

June 10, 20220
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“When you can’t create, you can work.”

– Henry Miller, Novelist

If you can work, you’ll need an employment agreement.

Everytime? Yes, everytime, in any case. An employment agreement is a ‘sine qua non’ (from Latin: condition without which it cannot be done).

 

Then why do some people work without an employment agreement?

 

It is true, there are employees who actually work without an employment agreement. Data from the latest report of the State Inspectorate of Labor and Social Services (SISI) show that the lack of an employment agreement is observed even when the employee is registered in the social insurance scheme.

Lack of a written employment agreement indicates informality. According to the same report, 0.8% of the employees of the 1570 private entities observed hadn’t signed an employment agreement. This phenomenon is more common in the hotel industry (2.8%) and construction industry (1.5%).

 

This might result from:

 

Let’s get straight to the topic: This is the third article of the series “For every problem law gives a solution, whereas Legit gives you two.”

For the new readers: Congratulations, you just became #LEGIT! Thank you for joining us! 🙂

Read here the first article of the series: Registration, Statute and Legit Platform
Read here the second article of the series: The Employee Left Today. What do I do?

This time we will answer the questions:

  1. When do I need an employment agreement?
  2. How to draft an employment agreement?

#Legit advice: Read the following paragraphs having this in mind: 

“The employment agreement should be drafted in a written form.”

– Article 21, Labor Code

When do I need an employment agreement?

 

An employment agreement should be drafted whenever you are hiring someone in the employer’s capacity.

The employment agreement is a contract between the employee and the employer, which regulates the employment relationship and contains the rights and obligations of the parties.

In the employment agreement, the employee undertakes to offer his work or service for a certain or indefinite period of time, within the organization and orders of another person, called the employer, who undertakes to pay a reward.”

Article 12, Labor Code

From Labor’s Code definitions for the employment agreement consider drafting one whenever:

 

  • You have reached an agreement
  • You want to hire someone for a long / short time or indefinitely
  • Work is payable
  • The employee will provide his work / service
  • The employer will organize the employment relationship 
Can one start to work without a written employment agreement? 

 

In principle, yes. However, the employment agreement should be drafted within 7 days from the start of the employment relationship

What elements should an employment agreement contain? 

 

The employment agreement should be in a written form, with the following elements:

  • Identity of the parties
  • Workplace
  • A general job description
  • The day when the work starts
  • Duration, when the contract is concluded for a certain period
  • Deadline for notification for termination of the contract
  • The constituent elements of the salary and the date of its award
  • Normal weekly working time
  • Reference to the collective agreement in force (if any)
  • Probation period
  • Types and procedures of disciplinary measures (if there is no collective agreement)
Do I have to draft an employment agreement for seasonal employees?

 

Seasonal employment has different requirements than regular employment. Business needs for employees might be different, too.

Read here on seasonal employment.

Employer’s responsibility to draft a written employment agreement for seasonal employees remains unchanged. 

Following this scenario, the employer should specify in the duration of employment clause, the reason why the agreement is being drafted for a specific period, as the Labor Code in the Article 140 requires that “the conclusion of an employment agreement for a certain period should be justified by objective reasons, related to the temporary nature of the job in which the employee will be employed.”

How to draft an employment agreement?

Comply with legal requirements and identify your business needs! Once you have done the second, you can draft the employment agreement using Legit’s Platform!

If you have 5 people to interview tomorrow, 3 subcontractors to meet, consider spending 5 minutes drafting Henry’s agreement – the engineer who joined your team yesterday, who hasn’t formally expressed his consent with a signature.

Legit Employment Agreement

 

In 5 minutes, you can draft an employment agreement tailored to the employment relationship needs, using Legit’s Platform. 

Just follow these steps:

For #legit entrepreneurs: Subscribing a 1-year plan, you can draft as many legal documents as you want, anytime!

#Legit library:

 

Henry Miller was right! When you can’t create, you can work. If you can hire, you should contract.

Until next time! 🙂

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