Temporary Employment Agreement

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A temporary employment agreement is signed to oversee the conditions of an employment relationship that is supposed to last for a short period of time. This form of contract is made between a company with its potential individual employee or two different companies. It is also known as an interim employment agreement. By drafting an effective temporary employment agreement, a smooth and successful relationship between the two parties is ensured during the course of employment. This blog will discuss all the details concerning a temporary employment agreement. So, let's get started!

Essential Elements of a Temporary Employment Agreement

For an effective temporary employment agreement, the most important clauses or key elements are as follows:

• Job Title: It provides details regarding the nature of the work you ought to do by the temporary employment agreement. Specifically, it ensures that both the employee and the employer are clear about the duties and responsibilities of the employee. The agreement also includes a consensus ad idem, which means 'meeting of minds.'
• Salary, Bonuses & Benefits: This outlines the stipend that the employee would receive from the employer during the course of employment. This clause allows negotiation for both parties before entering the agreement. Also, it entails bonuses and certain benefits packages that the employee would receive as per their desire. This mainly includes the annual salary of hourly salary, bonuses, raises, health benefits, incentives, health benefits, retirement plans, signing bonuses, and other benefits.
• Length of Employment: Specifying the course of employment is very important before entering the agreement. It also includes the provisions for renewal of employment, if necessary, in the future. This section in the agreement sometimes is referred to as 'schedule.' If the employee can only work for certain days a week, such conditions must be specified in the contract.
• Holidays and Leaves: Specifying the leaves, time-offs, and holidays is an important element of an employment agreement. The agreement also includes a comprehensive time-off policy. It entails how the time off will be accrued on its use and what advantage the employee can take. The company policies specify these and also include details regarding the paid leaves granted to the employee.
• Intellectual Property Clause: This defines to whom the intellectual property would belong during employment. The ownership of the intellectual property usually belongs to the company. This clause is added to prevent any future ambiguities.
• Communication Channels: This clause specifies to whom the employee would report by creating communication channels that oversee efficiency and transparency. Creating such a line of communication is extremely important to establish a hassle-free work environment.
• Confidentiality and Privacy: This specifies the circumstances where the employees must have anonymity. It ensures no company privacy violation since the employee can access all the trade secrets while working with the company. It usually includes the legal consequences if the employee is found to be revealing any confidential information.
• Termination and Severance: This specifies the criteria based on which the employee's termination can occur. Ensuring that the company is not negatively affected or has tarnished reputation by the termination is important. It also includes severance packages.
• Restrictive Clauses: This clause mainly comes into function after the termination. It includes non-compete, non-dealing, non-poaching, and non-solicitation clauses. It has an effect on the future jobs of the employee.

Types of Temporary Employment Agreements

When it comes to temporary employment agreements, there is a broad category. We have listed down the most prevalent ones:

• Internships: In an internship, companies offer students or graduates to work with them, comprehend the hands-on work, and gain experience in their respective fields. They work for a short period or temporarily before joining the organization as a full-time employee. Employers get an extra hand of work at a low cost in this type of employment. This also forms a recruitment process that promotes interns to convert their temporary position into a full-time position with the company.
• Part-Time Employees: This type of employment is where an employee comes under a contract of service to work less than 35 hours a week. This contract pays employees hourly, including break times or fixed monthly sums. This allows the employers to hide those individuals which they need for a certain time only. A part-time employee helps take a burden off the workload and provides extra support to full-time employees.
• Freelancers/Contractors: These individuals are self-employed personnel and take on freelance or contract work from organizations and companies. They are mostly responsible for all the work that the full-time employees are not. These responsibilities include specifying their work hours, tracking their time on various projects, etc. This works wonders for some projects, as freelancers are known to be experts in their domains. Moreover, companies are free to hire potential personnel across the globe as the nature of this employment is remote, which gives flexibility to work.

Large businesses, rather than small businesses, mainly use contractual and temporary employment. For short-term periods or seasonal increases in business, an employer hires temporary employees who can work as a helping hand in the company's project.

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Benefits of Temporary Employment Agreements

Many advantages come with signing a temporary employment agreement, some of which are:

• With temporary employees, companies gain access to an array of professional, skilled individuals who are pre-screened beforehand. It also helps save the employers valuable time from the hiring process.
• It helps reduce employment costs as temporary employees are considered cheaper labor for companies. This is because they are not provided with the same employment benefits as full-time staff.
• Temporary employees provide a trial period to their company before recruitment. This helps the employer specify and assess employees' performance before hiring them full-time.

Key Terms for Temporary Employment Agreements

• Negotiation: It is a strategic discussion between the two parties entering the contract to settle an issue with the details of remuneration in a way acceptable to both.
• Consensus Ad Idem: A Latin term used in a contract refers to a meeting of the minds.
• Anonymity: It means the employee does not have to be an individual identity to ensure the confidentiality and privacy of the employer.
• Non-Solicitation Clause: It is a clause included in a contract where the employee stops working for the company and starts working for another. Then, it abstains the employee from summoning or soliciting any business clients or confidential information of the previous employer.
• Severance: The financial term on which an employee would end their employment with a company after the termination of the contract.

Final Thoughts on Temporary Employment Agreements

A temporary employment agreement outlines the conditions based on which employment will be held temporarily. The terms of this form of contract serve as the primary distinction between a temporary employment contract and a regular employment contract. The former is the most cost-efficient and effective for the employer for a particular project. Hence, instead of hiring a full-time employee, they hire one for a short-term or temporary period. Many circumstances require the need for a temporary contract. Moreover, its duration can vary as per the company's policies.

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ContractsCounsel is not a law firm, and this post should not be considered and does not contain legal advice. To ensure the information and advice in this post are correct, sufficient, and appropriate for your situation, please consult a licensed attorney. Also, using or accessing ContractsCounsel's site does not create an attorney-client relationship between you and ContractsCounsel.

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Albert M.

Albert M.

I am a New Jersey licensed attorney and I have been in practice for over nineteen years. My practice mainly consists of representing public entities (municipalities, school boards, etc) and businesses, both small and large. In that capacity, much of work consists of drafting, reviewing and revising contracts.

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Michael S.

I began my career at "big law" firms, worked in-house for 14 years, and now have my own practice, providing big law quality at small firm rates. My practice focuses on strategic and commercial transactions, including M&A, preferred stock and common stock offerings, asset purchases and sales, joint ventures and strategic partnerships, stock option plans, master services agreements and SOWs, software development and license agreements, SaaS agreements, NDAs, employment and consulting agreements. I also manage corporate governance, advise boards and executives, and act as outside general counsel. I represent clients across the country and around the world.

Mark D.

Mark D.

Partnering with business clients to keep their greatest asset - their employees - from becoming their biggest liability. Mark accomplishes this by working with in-house counsel and human resource professionals of several Fortune 50 companies, as well as many smaller public and privately held profit and not for profit organizations, to provide advice and counsel on the day to day employment and workforce practice issues encountered by those organizations. For over fifteen years Mark has been Board Certified in Labor and Employment Law by the Texas Board of Legal Specialization. He is licensed and practices in both Texas and Colorado and has focused his practice for the last 20 plus years on defending companies in employment and labor related matters. During this time Mark has had extensive experience in handling and responding to a wide range of local, state and federal employment issues that impact the management and operations of businesses in a wide range of industries. Mark's experience includes appearances before state and federal agencies and regulatory boards, litigation in both state and federal courts, defense of class actions and appearances before courts of appeal. While Mark regularly handles matters in litigation, he has a high regard for handling every issue with the best interest of the client’s business. Mark is a published author and regular speaks on labor, employment and workplace practice topics. Whether it be an investigation by the Occupational Safety and Health Administration (OSHA), the Wage & Hour division of the U.S. Department of Labor, or other state agency; an Equal Employment Opportunity Commission (EEOC) or state agency charge claiming a violation of local, state or federal employment or labor laws; or the need for direction on a hiring, termination or business operational issue involving employees, Mark has extensive experience in handling these and many other employment and labor issues.

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Tabetha H.

I am a startup veteran with a demonstrated history of execution with companies from formation through growth stage and acquisition. A collaborative and data-driven manager, I love to build and lead successful teams, and enjoy working full-stack across all aspects of the business.

Elbert T.

Elbert T.

Elbert Thomas is the founder of the Thomas Law Group, LLC. Elbert is proficient in contract creation, drafting, reviewing, and negotiating various business contracts and demand letters in industries such as construction, personal, professional services, non-profits, and real estate. Elbert typically represents small and large companies in drafting and negotiating countless agreements such as purchase sale agreements, interconnection agreements, lease agreements, demand letters, cease & desist letters, transfer of deeds in real property, and merger/acquisition agreements. In addition, Elbert is also experienced in start-ups, small business formation, drafting operating agreements, and estate planning.

Jonathan K.

Jonathan K.

Pico & Kooker provides hands on legal advice in structuring, drafting, negotiating, interpreting, managing and enforcing complex high value commercial transactions. Adept at navigating complex environments, Jonathan has extensive expertise advising clients on a wide range of long- and medium-term cross border and financial engagements, including public tender participation, PPPs, export sales agreements as well as policy and regulatory formulation. Jonathan and his co-founder, Eva Pico have represented and acted on behalf of lenders, global corporations and other market participants across a range of industries including financial services, infrastructure and transportation. As outside counsel, Pico & Kooker, has developed a strong rapport and working relationship with their clients and appropriately work with their in-house teams to increase consistency, processes and procedures. The company employs a unique approach as practical, business minded outside legal counsel who believe in proactively partnering with their clients to achieve desired results while managing and engaging key stakeholders. They listen to their clients to develop customized solutions that best meet their needs while aligning with their objectives, vision and values. Some representative transactions include advising the World Bank on project finance and portfolio options to address the costs and risks associated with integrating renewable power sources. Also advising them as legal counsel, Jonathan developed policies, regulation and models for emerging market governments entering into public-private partnerships. In addition to his work with the World Bank, Jonathan has worked with some of the world’s largest consulting firms, financial institutions and governmental organizations, including the United Nations, the governments of the US, UK and select African countries. Through out his career, he has worked with large, multinational corporations both by consulting in-house and acting as outside counsel on large cross-border transactions. He graduated from Georgetown University’s law school and was admitted practice as a lawyer in New York, England and Wales and, as a foreign lawyer, in Germany. He has written several articles for trade journals and has been cited by several business publications in worldwide. Jonathan is a native English speaker and has high proficiency in German and a functional understanding of Spanish.