Before having started a new job, most of you have probably signed a contract with your company or organization. It is highly recommended that you do the same with your employee when you hire someone for a full time employment at your residence.
When are you in a situation like that?
People move overseas for a job assignment. If they move to a foreign country where labor is cheap, they may be able to afford a full time domestic helper or a driver. If you hire someone to work for you in a foreign country, creating a contract for your employee becomes a necessity.
It’s very important to have a contract between you and your employee while living overseas so that you can protect yourself. I know that some people do it without one. I’d say it’s better to be safer than sorry.
Having a contract can prevent you from getting into a sticky situation with your employees. It will also help you in case any questions arise. Creating a contract may feel like a hassle, but you only have to do it once at the beginning. Once it’s done, it will give you a peace of mind.
Writing A Contract
Unless you have a legal background, many of you have no idea where to even start when it comes to writing a contract. I was there once and I’m no expert in the field, either. However, I have always had a contract with my employees from the first time because I was advised to do so. The first contract I prepared was 17 years ago.
I was able to copy a sample contract which someone I knew provided me. I was lucky enough to have it because internet was not as resourceful back then. It was simple, but it did the job. Later I’ve faced situations where I wished I knew how to prepare myself for certain situations. Based on my experiences, I have created my own version of terms in the contract. I have learned some lessons in a hard way.
Hopefully providing you with this sample contract with explanations will help you prepare your contract in the future. If you would like to go straight to the sample contract, please scroll down to the end.
Once it’s ready, it is recommended that you go through the contract with your employees and have them agree and sign it for your record.
*I was told that in some countries, it would be better to have it notarized or have a witness so that it proves that your employees were not under pressure to sign it. It is understandable, but I’ve never done it myself.
DISCLAIMER
As I mentioned above, I do not have any legal expertise in the field. This is just to help who need a basic contract with their domestic employees. If you need a contract that is legally binding in your assigned country, please seek consultation with a local lawyer who can help you with it.
CONTENT OF EMPLOYMENT TERMS & CONTRACT
Below is the content of employment terms and contract with my explanations.
If you would rather skip this and access a file, please scroll down to the end for the PDF document.
PROBATION / TRIAL PERIOD
Start Date & End Date of Trial Period
It’s important to write down these dates in case you need to terminate the employment during the period. In some countries, once the probation period has passed, it becomes very difficult to terminate an employment.
*Probation period depends on each country. In the past I have given between 1 month to 2 months for a probation period. As an expat, I recommend that you don’t rush into the decision and give yourself as much time as possible to get to know your employees.
SAMPLE
After the trial period if either party is unhappy, unsatisfied or on a disagreement, the employment agreement will be terminated with no further obligation. If both parties are satisfied, the outlined terms will apply to a one-year contract.
CONTRACT STARTING DATE
Indicate the contract starting date. This is important for some countries if you have to register yourself as an employer for social welfare programs for your employees. The starting date becomes the day the employee responsible payment becomes active.
SALARY TERMS
Base Pay:
Mobile Phone Allowance:
Food Allowance: (If live-in, this could be part of live-in benefits.)
Benefits: i.e.) Employer contribution of Social Welfare System
Live-in Benefits: i.e.) beddings, food, water, toileteries, etc.
PAY PERIOD / SCHEDULE
A pay schedule depends on a country. In Senegal, Indonesia and India, we paid monthly on the last day of each month. In the Philippines, the norm is to pay biweekly. For domestic workers, expat employers in general pay a half-month salary on the 15th and the other half on the 30/31st of each month.
13TH MONTH BONUS
In all the countries we have lived, Senegal, Indonesia, India, and the Philippines, the 13th month bonus was required. In the Philippines, a Christmas bonus is commonly paid. Bonus can be pro-rated by the number of months worked if an employee has worked shorter than 10 months. You should mention it at the time of employment.
BENEFITS
If national social benefits are available and you intend to enroll and pay for the employer’s responsible amount, you may want to indicate that. If you don’t and employees are on their own for their benefits, then you can indicate as such.
Sample
Employer provides additional funds to pay the employer contribution for the social benefits.
If you live in the Philippines and you select to let your employees be on their own, you can add the following.
Sample
All receipts for employer payments are to be given to employer if the employee is responsible to pay.
HOURS
6 Days A Week
__________ to ______________
DAYS OFF
_________________ are day(s) off every week.
HOLIDAYS & VACATIONS
Employee will be given the ________ Regular Holidays published by the local government. See the list below.
*In India, there are national holidays, public holidays and bank holidays. If you agree to give bank holidays, you may not see your employees much.
In many countries, there are holidays when everyone takes time off of work and other optional holidays when some offices close, but others don’t. You may want to find out those optional holidays.
Example:
10 REGULAR HOLIDAYS IN THE PHILIPPINES
New Year’s Day
Bataan Day (Araw ng Kagitingan/Corregidor Day)
Maundy Thursday
Good Friday
Labor Day
Independence Day
National Hero Holiday
Bonifacio Day
Christmas Day
Rizal Day
Sample
There will be a paid vacation leave during the summer while the employer and the family leave for vacation.
*You may want to ask your employee to check on your residence in case you are away for an extended period of time. It is better to clarify what the expectations are for the long holidays at the beginning of employment.
LEAVE
Sample
Request for additional time off for family matter will be considered on as needed basis. However, leave taken within the last 3 months before the end of employer’s time in the country prior to relocation will be leave without pay. (Due to the need for a replacement.)
ADVANCE PAYMENT
We have considered salary advance on as needed basis. We have allowed advance payment if the employee has worked for at least 6 months. You can set a limit as to how much advance payment can be requested at a time. In our case, loan has to be paid back in full before terminating employment or requesting another loan. If the loan is not paid back before the termination of employment, the amount owed will be deducted from the last salary.
SEVERANCE PAY
This only applies if the employer terminates the contract due to relocation or change in household needs. Separation pay is usually not applicable if an employee quits to take another job or if an employee is fired due to the theft or misconduct.
OTHER TERMS
Following are just examples. If you have no other terms, you should remove this part.
Sample
Children are not to be removed from the residence without parent or parent approval.
Employee will maintain load balance on cell phone at all time when working to ensure consistent communication via text messaging with employers. Employer will provide 300 pesos for cell phone load each month for usage for work.
TERMINATION
This is important to list. However, in some countries, labor is protected and employers of domestic helps and drivers may not be able to terminate employment very easily. I recommend you check with other long-term expats on this.
I recommend that you list the following in your contract.
If employee requests to leave before one-year contract has been completed, repayment of any loans/salary advances and pro-rated reimbursement of social benefits paid in advance is required.
I had an experience where someone quit suddenly. The length of employment was a couple of months. I didn’t owe any severance pay, but I provided it as the reason for quitting was serious disease. It turned out it was not true and my old employee moved on to work for another employer.
Employer has the right to break the contract with just cause and under reasonable circumstances (relocation/unacceptable behavior of employee).
You may want to indicate how long of a notice you need before your employee resigns from the job. I think one-month in advance is reasonable.
SAMPLE CONTRACT
If you click on the document, it will open the sample document in PDF format.
FOR LATER
Leave a Reply