7 Common Employment Contracts You Might Be Offered

Before taking on a position, companies will typically require new employees to sign a contract that outlines the terms of their employment. 

Generally, all contacts of employment will detail the specifics of an employment relationship; however, there are different types of contracts an employer can offer, too. 

The type of contract offered is typically determined by the organization's requirements, employee status, and other contributing factors. 

With this in mind, we have outlined 7 of the most common employment contracts you may get offered when applying for a new job. 

Also read: 5 Valid Reasons For Reporting A Line Manager

What Are Employment Contracts?

An employment contract consists of an agreement between employer and employee that is provided during the hiring or renewal process. 

Typically, when an employment contract is written, it will require both parties to sign the form which signifies an agreement. 

Here, you’ll usually find the responsibilities and rights of both employers and employees, and they are usually established to ensure all parties in a contract understand their obligations. 

Below, you will find a few key pieces of information outlined in a contract. 

• Employment duration 

• Salary information

• Medical insurance 

• Schedule 

• Paid time off (PTO) policy 

• Dental Insurance 

• Protections

• Sick leave policy

• Non-compete clauses

• Limitations

• Employment conclusion details

• Conflict resolution protocol

• Retirement plans

Also read: 5 Fair Reasons To Dismiss An Employee 

7 Types of Employment Contracts

1. Full-Time Contract

Full-time contracts are generally offered for taking on permanent employment. This generally requires a full week’s work with 35 hours or more.  

In these contracts, you’ll find information regarding paid holidays, benefits, sick time, retirement plans, and vacation periods. 

In addition to this, some full-time contracts provide new employees with further benefits, this includes workplace perks or professional development opportunities. 

In most cases, full-time contracts are usually written as they consist of many different components. Plus, employers want to be thorough and clear when offering extensive agreements. 

Also read: When Is Employee Appreciation Day?

 

2. Part-Time Contract

Part-time contracts are offered to those who work a reduced amount of hours when compared to full-time employees. 

Generally, these are provided to those working less than 35 hours per week. Like a full-time contract, they will usually include the same protections and stipulations. 

In this contract, you’ll usually find details regarding the employee’s weekly schedule, flexibilities, and rate of pay. 

However, you should keep in mind that these contracts don’t typically include information regarding PTO, insurance, or salary – these are reserved for full-time contracts. 

 

3. Casual Contract

Casual contracts are offered to employees working on a temporary or seasonal basis. With a casual contract, employers will only outline that workers are paid for the work they complete. 

Here, employers don’t have to offer a minimum amount of work hours or shifts. Additionally, sometimes, they will also detail that employees aren’t required to take shifts or hours offered, either.  

These types of contracts will usually offer both employer and employee more flexibility. However, they are usually reserved for short-time employment. 

Also read: 5 Reasons You Need To Perfect A Job Description 

 

4. Zero-Hour Contract

Zero-hour contracts are offered to those who are only employed when work is available or work irregular hours. 

In zero-hour agreements, an employer has to agree, whether this is verbally or in writing, that they will provide work when it is available. Likewise, an employee will also agree to remain on call for available work or will work such shifts. 

In these contracts, there will usually be information specifying that an employee has to work a minimum amount of shifts or hours per month – this number is usually set by the employer. 

Moreover, an employee has the right to refuse any work offered that may be inopportune. 

Zero-hour contracts are typically reserved for hiring temporary employees, including babysitters or day laborers. 

Unlike part-time or full-time contracts, with zero-hour contracts, you won’t be provided with information regarding regular scheduling, benefits, or standard rate of pay, since this type of contract isn’t offered these types of protections. 

Also read: Full Time Vs Part Time Hours

 

5. Union Contract

Union contracts are a form of standardized legal agreements that are offered to those joining a nationwide or local union of workers. 

These types of contracts are typically reserved for particular trades that work directly with the union or are contracted to work for a private company. 

While a private company may provide you with a salary and take control of the hiring process, the union is the one providing the contract items. 

Here, you’ll find duties, job descriptions, PTO, vacation time, pension details, and benefits. These types of contracts are beneficial to employees since they protect and advocate employee rights. 

 

6. Freelance Contract

Freelance contracts are usually offered to those workers hired to complete a particular project, they could include writing an article, designing a website, doing home renovations, or taking photos. 

The contract outlines the limitations of hours, salary, project details, and payment notices. A contract is required to protect freelancers from receiving late payments, as well as project-related challenges that may arise. 

However, freelance contracts won’t typically include information regarding benefits, such as PTO and insurance, since freelance work is considered closer to self-employment than full-time work. 

7. Executive Contract

Executive contracts are usually reserved for when companies hire high-profile executives to work in upper management positions. 

These types of contracts are similar to full-time contracts since they detail all the typical protections, benefits, and perks offered to executive employees. 

However, what makes them unique is that they also include special incentives designed to attract high-quality candidates. This could include anything from severance packages and higher salaries to even a company car. 

Moreover, it is also common to find very specific clauses in an executive contract regarding confidentiality and working in similar competitor roles.

 

Final Thoughts

When you’re offered a job, you’re usually provided with an employment contract. 

The type of contract you receive can vary depending on the role and the employer's/employees' requirements. 

Hopefully, this guide has informed you about the 7 most common employment contracts. 

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