How to write an employee contract

This sets the figures in an employment contract before anyone writes a clause. It takes the annual salary, contracted hours, paid time off, holidays, the introductory period, the notice period, the target bonus and the pay frequency, and returns the numbers the contract states: the gross pay per pay period, the hourly equivalent, PTO in hours and per-period accrual, pay in lieu of notice, the target bonus and the total target package. A contract is mostly terms that refer to these figures, and getting the figures right first is how the clauses stay consistent with payroll.

Write the salary as the payroll will pay it

An annual figure is what the offer says and a per-period figure is what the bank statement shows, and a contract that states only the first invites the question in the first month. The page divides the salary by the pay periods in your schedule, weekly, biweekly, twice monthly or monthly, so the contract can state both and they agree. The hourly equivalent is there for the same reason: it is what an overtime or a part-period calculation will use.

Notice periods cost money, so price them

A two-week notice period is a fortnight's pay if either side chooses to pay in lieu, and a contract that promises it should know the figure. The page works pay in lieu of notice from the salary and the weeks, which is also the number a manager needs before a conversation about ending an introductory period early.

Probation and bonus are terms, not decoration

An introductory period only protects anyone if its length and its end are written down; the page converts the days to weeks so a calendar reminder can be set from it. A target bonus stated as a percentage should also be stated as a dollar figure and folded into a total target package, because that is the number the candidate is comparing against another offer.