However, not all employers are aware of the obligations they assume by entering into an employment contract and, not least, the risks that may lie in it. The risks are most often related to conditions that should have been described, but which may go beyond the 13 requirements in the legislation.
When using a template for such agreements, it is still important to make sure that the template is suitable for the employment in question. A typical pitfall in this respect is when using a template for permanent employment for a temporary employment. Even if you manage to include the basis for the temporary nature and duration of the employment relationship, it is easy to not update the standard text regarding, for example, probationary periods and notice periods or holiday entitlements.
By risk, I primarily mean the risk that discrepancies and doubts may arise about what has actually been agreed and what obligations and rights apply in the employment relationship. Two examples of this:
- Have we agreed that overtime pay should be included in the salary? If so, there must be consistency between the specification of ordinary working hours, the salary provisions and, if applicable, whether the position is to be defined as managerial or particularly independent. A position does not have to be managerial or particularly independent to have overtime included in the salary, but it must be clear in the agreement what applies in this case. It is also possible to agree that the salary includes payment for some overtime, and that the excess will be paid separately.
- Do we have good descriptions of the expectations placed on employees in terms of loyalty, confidentiality and non-disclosure, the possibility of taking on work or positions for others while employed, or rights to patents, inventions and intellectual property developed in the course of work? The need to describe such matters will naturally vary depending on the type of company, but it is often sensible to be clear about expectations and thus avoid doubts and disagreements later.
It is also sensible to create good interaction between the various documents that constitute the formal framework for employment. In addition to the employment contract, this often consists of work regulations, job descriptions and the personnel handbook, and often also of procedures and job descriptions. In many companies, there is also a collective agreement system that is established through collective agreements and local agreements.
It is also smart to be aware of the legal status of these different documents. The employment contract is an individual agreement between two parties and there are clear rules for how it can be changed or terminated. The work regulations are usually a collective agreement between the company and the employees and, together with the other collective agreements, can only be changed when agreed upon. The personnel manual and internal procedures are the company's own documents that can be changed by the company when necessary, but of course within the other framework.
