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What is an employment contract?
An employment contract is a legally binding agreement between the employer and the employee that sets out the terms and conditions of employment. It can be verbal or written, but a written employment contract is always recommended to avoid misunderstandings and to protect both parties.
The contract typically covers:
- Job duties and responsibilities
- Type of employment (e.g. permanent or hourly)
- Salary and other compensation
- Working hours
- Notice period
A clear, well-written contract that both parties understand and accept is essential for a healthy working relationship.
When is an employment contract needed?
An employment contract should always be put in place when someone is hired, regardless of the type of employment.
This includes:
- Permanent employment (open-ended contract)
- Hourly or on-call employment
- Fixed-term employment
- Internships and summer jobs
Even for digital employment contracts, it is important to use a reliable template that both parties sign.
Get the employment contract template for free
Download full versionTypes of employment contracts
An employment contract might look slightly different depending on type of employment. Here are the most common:
Permanent employment contract
The most common form. Provides strong protection for the employee and is open-ended in duration.
Hourly / On-call employment contract
A flexible arrangement where the employee is called in when needed. Hours and pay vary week to week.
Fixed-term employment contract
Used for temporary projects, seasonal work, or parental leave cover. The contract has a defined end date.
What should an employment contract include?
A complete employment contract should always contain the following:
- Full names and contact details of both parties
- Type of employment and start date
- Salary and other benefits (e.g. pension, holiday pay, bonuses)
- Working hours and holiday entitlement
- Notice period for both employer and employee
- Reference to any applicable collective agreement
- Relevant legal references and governing jurisdiction
- Signatures of both parties – ideally via a digital signing solution
How to write an employment contract
You can hire a lawyer to draft an employment contract, or use a professionally prepared template as your starting point. Together with Bird & Bird, we have developed a free employment contract template suitable for businesses and individuals alike.
Please note that these documents are templates only and cannot replace tailored legal advice for your specific situation. When using these documents, ensure that the instructions are read carefully and that any uncertainties or questions are discussed with a qualified lawyer in the relevant field. Neither Bird & Bird nor Scrive AB can be held liable for the content of the documents or any consequences arising from their use.
Want a smoother workflow?
Use a digital solution like Scrive to:
- Sign employment contracts electronically
- Sign with electronic ID verification (e.g. BankID or other eID methods)
- Eliminate paper and postal delays
- Full audit trail and logging for every signature
- GDPR-compliant document storage on European servers
- Legally valid across the EU under the eIDAS regulation
With Scrive eSign, both employer and employee can sign from anywhere – no printing, scanning, or postal delays. The signed document is stored in Scrive’s e-archive on European servers and can be exported to systems such as SharePoint or Google Drive.
Frequently asked questions about employment contracts
What is an employment contract?
An employment contract is a legally binding agreement that governs the relationship between an employer and an employee. It defines the rights and obligations of both parties – covering job role, pay, working hours, notice periods, and more.
Are there free templates available to download?
Yes. You can download a free employment contract template in Word Docx format directly from this page. The template was developed in collaboration with Bird & Bird and is suitable for most standard employment arrangements.
What does the law say about employment contracts?
Employment law governs what must be included in a contract. Requirements vary by jurisdiction. In Sweden, for example, the Employment Protection Act (LAS — Lagen om anställningsskydd) sets out minimum requirements. Always ensure your contract complies with local employment legislation.
Can I write an employment contract myself?
Yes. Using a professionally drafted template as your foundation, you can create a legally sound employment contract on your own. For complex situations such as senior executive agreements, cross-border employment, or highly bespoke arrangements it is advisable to consult an employment lawyer.
Does an employment contract need to be in writing?
Technically, an employment contract can be verbal in many jurisdictions, but a written contract provides far stronger legal protection for both parties. Without a written agreement, it becomes very difficult to resolve disputes over agreed terms.
What is the difference between a permanent and a fixed-term employment contract?
A permanent (open-ended) contract has no defined end date and continues until either party gives notice. A fixed-term contract covers a specific project or period and ends automatically on the agreed date. Both types should be documented in writing.
When should both parties sign the employment contract?
Ideally before the employee starts work. Signing in advance ensures both parties have agreed to the terms and provides a clear record from day one. With Scrive, contracts can be signed digitally in minutes.
Explore more templates
We offer ready-made templates that save time, reduce risk and increase quality. We have contract templates in most industries, find your contract template for download in our selection below.
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