Drafting employment contracts: what you should review
Hiring a new employee is an important decision for any company. Finding the right profile is not enough. It is also essential to formalise the employment relationship correctly in order to avoid legal issues, misunderstandings, or future conflicts.
Drafting employment contracts requires attention and knowledge of the applicable regulations. A well-drafted contract protects both the company and the employee and provides certainty from the first day.
The employment contract
The employment contract is the document that regulates the rights and obligations of both parties. Reviewing the contract before hiring makes it possible to detect errors, adapt the conditions to the actual position, and ensure that everything complies with current legislation.
Good contract management also helps to:
● Avoid labour penalties.
● Reduce the risk of claims.
● Improve internal organisation.
● Build trust with the employee.
● Make the conditions clear from the outset.
Key aspects when drafting the contract
Choosing the right type of contract
One of the most important points is selecting the correct contractual modality according to the needs of the company and the job position.
The most common types of contracts include:
● Permanent contract.
● Temporary contract.
● Fijo discontinuo contract.
● Training contract.
● Part-time contract.
Choosing the wrong type of contract can lead to penalties or legal issues later on. For this reason, it is important to properly analyse the expected duration of the activity, the employee’s duties, and the characteristics of the position.
Checking personal and tax details
Many mistakes arise from incorrect basic information in the contract. Before signing, it is advisable to carefully check:
● Full name.
● DNI or NIE.
● Address.
● Company tax details.
● Social Security affiliation number.
Clearly defining the job position
The contract must clearly explain the employee’s role within the company.
This includes:
● Professional category.
● Main duties.
● Working hours.
● Workplace.
● Department.
The more detailed this information is, the lower the risk of confusion or disagreements in the future.
Clauses that should be reviewed carefully
Salary and financial conditions
Salary is one of the most sensitive aspects of any employment contract. It must be clearly specified to avoid future problems.
It is important to indicate:
● Base salary.
● Extra payments.
● Salary supplements.
● Variable pay or incentives.
● Method and date of payment.
Probationary period
The probationary period allows both parties to assess whether the employment relationship works properly. It is advisable to review both its duration and the conditions applicable during this period.
Working schedule and working hours
Another key point is the distribution of working time.
The contract should specify:
● Working schedule.
● Number of weekly hours.
● Shifts.
● Rest periods.
● Possibility of overtime.
In part-time contracts, this information is even more important in order to avoid breaches or conflicts related to hours actually worked.
Confidentiality and data protection
In many sectors, confidentiality clauses are commonly included to protect sensitive company information.
These clauses may refer to:
● Client data.
● Financial information.
● Internal processes.
● Business strategies.
Common mistakes when drafting employment contracts
Using generic templates
Many companies use standard templates downloaded from the internet without adapting them to their actual needs.
The problem is that each hire has its own specific characteristics. A generic contract may leave legal gaps or include conditions that do not match the position.
Customising each document helps avoid errors and improves legal certainty.
Not updating contracts according to current regulations
Labour legislation changes regularly. Using outdated contracts may lead to non-compliance and penalties.
For this reason, it is advisable to periodically review all employment documentation and adapt it to the latest legal updates.
Drafting ambiguous clauses
Unclear conditions are often one of the main causes of conflict between the company and the employee.
A contract should be direct, understandable, and specific. The clearer the wording, the easier it is to avoid incorrect interpretations.
When professional advice is recommended
Although basic contract templates exist, many situations require professional analysis.
Specialists in drafting employment contracts can help you to:
● Comply correctly with regulations.
● Adapt the contract to the applicable collective agreement.
● Include specific clauses according to the sector.
● Detect potential legal risks.
● Resolve doubts before formalising the hiring process.
In addition, preventing mistakes from the beginning is usually much more cost-effective than dealing with claims or inspections later.
Greater security with Personal Business Advisory
Transparent hiring improves the employment relationship from the outset and provides peace of mind for both the company and the employee. At PBA, we help you draft clear, complete employment contracts tailored to each situation. We review every detail with you so that you can hire with confidence and focus on what matters most: bringing talent into your company with certainty.