What Employment Documents does an Employer Need to Hire an Employee?

Last revision: Last revision:April 19, 2024

Employers can safeguard themselves through contracts and policies, thus mitigating potential disputes or legal issues in the future. Written contracts and policies serve to clarify expectations for employees, providing essential documentation for easy reference in case of disputes or infractions.

As such, employers should establish employment contracts and policies to govern their relationship with their employees. This legal guide will outline key employment documents necessary for employers and elucidate their significance.


1. Offer of Employment

The Offer Letter is issued to a job candidate to confirm that they have been given employment. The letter describes the following: the employee's name and address; the employee's position; the employee's scope of employment; duration of employment (if any); the employee's remuneration; and other employment benefits.

Please note that this document may be used alone since it covers the important terms of employment. However, some employers prefer to send this letter along with the Employment Agreement, which is a more elaborate document that provides more detailed information.

Once the job applicant receives this letter, they are required to either accept or reject the offer, either orally or in writing.

After an Offer of Employment is made, a job candidate may either accept or refuse the offer by sending a Letter of Acceptance or Rejection to the employer. Once the offer has been accepted, the job candidate becomes an employee and is bound by the Employment Contract and policy documents that apply to employees of that organization.


2. Employment Contract

An Employment Contract is a document that outlines the terms and conditions of employment. It sets out specific rights, duties, and obligations of the employer and employee.

In Nigeria, the agreement must be given to the worker within three months of commencement of work.


Form and Content of an Employment Contract

The employment agreement may be made orally or in writing. However, for proper documentation and the avoidance of imminent or future disputes, it should be made in writing.

The document should contain the following details:

I. Particulars of the parties. The contract should include the full names and addresses of the employer and employee. If the employee is a company, firm, or other organization, the full name and business address of the organization should be provided in the document. Also, the name and role of the officer (who will sign the document) should be stated clearly.

II. Position or title of the employee. This describes the specific role of the employee.

III. Duties and obligations of the employee. The document should describe the specific duties and obligations of the employee.

IV. Type of employment. This explains whether it is full-time or part-time employment and whether the employment is permanent or temporary.

V. Duration of employment. Some employment lasts for a particular period, while others are indefinite.

VI. Remuneration. This is the money given to the employee as compensation for work done.

VII. Employment benefits. This includes bonuses, pension or retirement plans, annual leaves, sick or medical leave, maternity or paternity leave, study leaves, and other leave of absence. Under the Labour Act, employees are entitled to annual leaves or holidays, medical leave, and maternity leave. In Lagos state, civil servants are entitled to up to 10 days of paternity leave.

The pension scheme is a retirement account where employers and employees contribute. For example, under the Pension Reform Act, the employer is required to contribute 10% of the employee's remuneration and the employee to contribute 8% of their monthly wages to the account. However, both the employee and the employer may contribute more. It all depends on what the parties agreed to in the Employment Contract.

VIII. Intellectual property ownership. This clause grants any work of intellectual property created by the employee during employment to the employer.

IX. Confidentiality provision. This provision or clause requires an employee to maintain the confidentiality of certain information the employee has access to during employment. An employee may come across certain non-public or trade secret information that should not be disclosed to a third party.


3. Remote Work Policy

A Remote Work Policy outlines a set of guidelines and procedures established by organizations to regulate employees' remote work arrangements. It is crucial for employers who have employees working from home or a hybrid work arrangement (both remote and in-person work).

This policy outlines eligibility criteria, defines who can work remotely, and sets clear expectations regarding work hours, communication channels, and availability. Additionally, the policy outlines the provision of necessary equipment and technology for remote work, along with protocols for data security and confidentiality. It addresses procedures for virtual collaboration and meetings, and requirements for reporting work hours and completed tasks. In the same vein, the policy ensures compliance with company policies, legal obligations, and health and safety considerations while working remotely.

An employer may allow their employees to work remotely due to certain circumstances, such as if the employee's close relative is sick or injured and the employee needs to work from home to care for the sick relative, or if an employee prefers to work remotely due to distractions at the work premises.


4. Workplace Policies

Other policies that are crucial in a workplace include, but are not limited to the following:


A. Employee Handbook

The Employee Handbook also known as Staff Manual, outlines information about the organization an employee works for, employment-related information, the organization's policies and procedures, and the employees' code of conduct in the organization. Additionally, it outlines crucial information regarding disciplinary procedures, benefits, leave policies, and other pertinent details.

Every organization needs to have an Employee Handbook to avoid litigation in the future. It enhances consistency, transparency, and compliance throughout the organization, while also offering employees a clear comprehension of the company's expectations and values.


B. Leave of Absence Policy or Agreement

The Leave of Absence Agreement is an agreement between the employer and employee where the employer permits the employee to take some time off from work. An employee may take a temporary leave of absence from work to complete an educational program or a project, or for personal reasons. During such leave periods, the employee typically retains their status as an employee of the organization and remains bound by the terms of their Employment Contract, including any relevant policies and regulations. In many cases, employees are entitled to return to their former position or a similar role within the organization once the leave period is over, provided they meet any applicable conditions or requirements specified in the Employment Contract or company policies.


C. Code of Conduct Policy

The Code of Conduct Policy outlines the employer's expectations for their employees' conduct within the workplace. This covers their relationship with coworkers and management of the company, their job performance, and general work ethics. The document also spells out unacceptable conduct and stipulates disciplinary measures for every infraction.


D. Employee Privacy Policy

The Employee Privacy Policy describes the type of information employers collect from their staff, how the information is processed and stored, the rights of employees regarding their data, and how the organization protects its employees' data.

When a person is hired, the employer collects certain private non-public information about the employee. This information identifies the employee, which includes the employee's contact details, date of birth, marital status, gender, and account details. On the other hand, sensitive information is information about an employee's criminal record, religious or political beliefs and ideology, medical record, certificate, and so on.

The employer is required by law to protect all private and sensitive data collected from their employees.


E. Anti-Harassment and Non-Discrimination Policy

This document prohibits harassment and discrimination in the workplace. The Anti-Harassment and Non-Discrimination Policy is governed by federal laws in Nigeria. It ensures equal employment between all employees and prohibits the discrimination and harassment of an employee on account of their race, age, gender, ethnicity, tribe, sexual orientation, political views, place of origin, nationality, marital status, or other qualities or characteristics.


F. Social Media Policy

The Social Media Policy outlines guidelines for an organization's use of social media. It outlines the employer's expectations regarding the appropriate use of social media platforms to maintain a positive digital presence for the business. This policy also governs the type of content permissible for sharing online and establishes guidelines for the timing of content posting.


Summary

Employers can safeguard their interests by implementing contracts and policies to manage potential disputes and legal issues effectively. These documents, such as Employment Contracts and Workplace Policies, clarify expectations for employees and provide essential documentation for reference in case of conflicts.

Key employment documents, including Offer Letters, Employment Contracts, and Workplace Policies like the Employee Handbook, are crucial for governing the employer-employee relationship. These documents outline rights, responsibilities, and expectations, providing clarity and transparency. Furthermore, specialized policies such as those addressing leave, conduct, privacy, and social media usage contribute to maintaining a positive workplace culture while ensuring legal compliance and safeguarding both employer and employee interests.


About the Author

Vivian Umelue is an attorney and legal templates programmer at Wonder.Legal and is based in Nigeria.


Templates and examples to download in Word and PDF formats

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