Discover these 6 types of Employment Contracts

Discover the 6 types of employment contracts: permanent, independent, part-time, temporary, acceptance letter, and Vermont employee transformation.


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The foundation of any successful business relationship is a clear and well-defined agreement. This is especially true when it comes to the employer-employee dynamic. Employment contracts establish the rights and responsibilities of both parties, ensuring a smooth working relationship and protecting everyone involved.

In this blog, we'll delve into six key employment contract templates that are crucial for any business:

  1. Employee Contract
  2. Permanent Employment Contract
  3. Temporary Employment Contract
  4. Independent Employment Contract
  5. Employment Acceptance Letter Template
  6. Vermont Employee Transformation Agreement Template
6 types of Employment Contracts

By understanding the purpose and key elements of each contract, you can choose the most appropriate one for your specific needs. Additionally, we'll guide you through the effortless download process on the BoloForms Signature platform, making it easier than ever to manage your employment contracts.

1. Employment Contract

An employment contract is an agreement between you (the employer) and someone you hire (the employee). It outlines the important details of the working relationship, like:

  • Job duties: What the employee will be doing for the company.
  • Pay and benefits: How much the employee will get paid and any other perks they get, like health insurance or vacation time.
  • Work schedule: When and where the employee will be working (full-time, part-time, remote work, etc.).
  • Rules and expectations: Things like company policies, confidentiality (keeping things secret), and what happens if someone breaks the rules.

Having an employment contract in place is good for both you and the employee. It helps:

  • Avoid confusion: Everyone knows what's expected of them.
  • Protect everyone's rights: The contract spells out what the employee can expect from you and what you can expect from them.
  • Make things smoother: If there are any problems, the contract can help you figure them out fairly.

There are different types of employment contracts, depending on the situation. Some common ones are:

  • Permanent contracts: For full-time or part-time jobs that are expected to last a long time.
  • Temporary contracts: For jobs that only need to be filled for a short period, like covering for someone on leave.
  • Independent contractor agreements: For people you hire to do a specific project, but they're not considered an employee (like a freelancer).

Check out our Employment contract template at BoloForms Signature! Make contract management easy with BoloForms Signature.


Sample Employment Contract

2. Permanent Employee Contract

A Permanent Employee Contract, also known as an indefinite-term employment contract, is a legally binding agreement between an employer and an employee that outlines the terms and conditions for a long-term employment relationship. There's no set end date for this type of contract, and it remains in effect until either the employer or the employee chooses to terminate it.

Here's a breakdown of some key elements typically included in a Permanent Employee Contract:

  • Job Title and Description: This section clearly defines the employee's role within the company, specifying their responsibilities and expected duties.
  • Start Date and Compensation: This details the official starting date of employment and outlines the employee's compensation package, including salary, benefits, bonuses, and any other forms of compensation.
  • Work Schedule and Location: The contract specifies the expected work hours, location (on-site or remote), and any potential flexibility arrangements that might be offered.
  • Confidentiality and Intellectual Property: This section protects the company's confidential information, such as trade secrets or proprietary data. It also clarifies ownership of any intellectual property (like inventions or creative works) created by the employee during their employment.
  • Termination Clause: This clause defines the grounds and procedures for termination for both the employer and the employee. It outlines reasons for termination by the employer (like redundancy or misconduct) and establishes the employee's notice period if they choose to resign. Additionally, it might specify potential severance agreements in case of termination.
  • Dispute Resolution: This section outlines the process for addressing any disagreements that may arise during employment. It might involve internal mediation or arbitration before resorting to legal action.

By utilizing a well-crafted Permanent Employee Contract, you can establish a strong foundation for a successful and long-lasting employment relationship.

Check out our Permanent Employment contract template at BoloForms Signature!


Sample Permanent Employee Agreement

3. Temporary Employment Contract

A Temporary Employment Contract, also known as a fixed-term contract, is a legal agreement between an employer and an employee for a predetermined period. Unlike a permanent contract, it has a specific start and end date, making it ideal for situations where you need to fill a position for a limited duration.

Here are some key characteristics of a Temporary Employment Contract:

  • Defined Project or Need: This type of contract is typically used for specific needs like project completion, maternity leave coverage, seasonal spikes in workload, or short-term replacements for absent employees.
  • Start and End Date: The contract clearly outlines the exact timeframe for the temporary employment, ensuring both parties are aware of the duration.
  • Compensation: Details the pay rate, benefits (if any), and payment schedule for the temporary employee. Benefits like health insurance or paid time off are less common in temporary contracts compared to permanent ones.
  • Termination Clause: This clause defines the terms for early termination by either party. It might include notice periods or potential severance agreements depending on the circumstances. For example, the employer might have the right to terminate early if the project is completed sooner than anticipated.

Check out our Temporary Employment contract template at BoloForms Signature!


Sample Temporary Agreement

4. Independent Employment Contract

An Independent Employment Contract, also known as a freelancer agreement or contractor agreement, is a legal document that outlines the terms of service between a company (the client) and an independent contractor (the freelancer or contractor). Unlike an employee, an independent contractor is not considered part of the company's workforce and is responsible for their taxes and benefits.

Here's a breakdown of some key elements typically included in an Independent Employment Contract:

  • Project Scope and Deliverables: This section clearly defines the specific services or deliverables expected from the independent contractor. It outlines the project goals, deadlines, and the specific tasks or outcomes required.
  • Payment Terms: The contract details the payment schedule, milestones for completion (if applicable), and the method of compensation for the independent contractor. This could be a fixed fee for the entire project, an hourly rate, or a combination depending on the nature of the work.
  • Term and Termination: The contract specifies the duration of the project or engagement, along with termination clauses for both parties. It might include notice periods for early termination and define any potential consequences in such scenarios.
  • Intellectual Property Ownership: This section clarifies ownership of any intellectual property (like inventions, creative works, or copyrighted material) created by the contractor during the project. The client might choose to purchase ownership of the intellectual property for an additional fee.
  • Confidentiality: The contract protects the client's confidential information, such as trade secrets or proprietary data, by prohibiting the contractor from sharing it with unauthorized parties.

Check out our Independent Employment Contract template at BoloForms Signature!


Sample Independent Contract

5. Employment Acceptance Letter Template

An Employment Acceptance Letter Template is a formal document used by a candidate to confirm their acceptance of a job offer. It serves as a record of the agreed-upon terms and initiates the next steps in the onboarding process.

Here's a breakdown of the key elements typically included in an Employment Acceptance Letter Template:

  • Your Information: This includes your full name and contact information (phone number and email address).
  • Date: The date you write and submit the letter.
  • Employer Information: The name and contact information of the hiring manager or company representative who extended the offer.
  • Job Title: Clearly state the specific job title you are accepting.
  • Start Date: Reiterate the agreed-upon starting date for your employment.
  • Acceptance: This is the core of the letter. Express your enthusiasm and formally accept the job offer by stating something like "I am pleased to accept your offer for the position of [Job Title] at [Company Name].
  • Next Steps: (Optional) You can inquire about any next steps or pre-employment paperwork you need to complete before your start date.
  • Signature: Include your physical or electronic signature to finalize the document.

Check out our Employment Acceptance Letter Template at BoloForms Signature!

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Sample Employment Acceptance Letter Template

6. Vermont Employee Transformation Agreement Template

The Vermont Employee Transformation Agreement Template is a specialized legal document used specifically within the state of Vermont. It facilitates a smooth and legal transition for an employee when their role or department undergoes significant changes within the company.

Here's a breakdown of the key elements typically included in a Vermont Employee Transformation Agreement Template:

  • Statement of Job Changes: Clearly outlines the specific modifications to the employee's position or department.
  • Revised Job Description: Provides a detailed description of the employee's new responsibilities following the transformation.
  • Compensation and Benefits: Specify any adjustments to salary, benefits package, or working hours.
  • Employee Consent: Obtains the employee's written agreement to the new employment terms.
  • Dispute Resolution: Defines the process for addressing any disagreements regarding the transformation agreement.

Check out our Vermont Employee Transformation Agreement Template at BoloForms Signature!


Sample Temporary Agreement

Effortlessly Downloading Employment Contract Templates with BoloForms Signature

Now that you're familiar with these essential employment contracts, obtaining the necessary templates is a breeze with BoloForms Signature. BoloForms Signature you can streamline every step of the process, from accessing templates to finalizing agreements. Here's a detailed guide on how our platform can enhance your contract workflow:

  1. Explore the Extensive Library: BoloForms Signature offers a vast collection of meticulously crafted employment contract templates. Whether you need a standard employment agreement, a non-compete clause, or a confidentiality agreement, our library has you covered.
BoloForms Signature offers a vast Employment Contract Library
  1. Customization Made Simple: Our pre-drafted templates are designed to be easily customizable. While they come with comprehensive content that covers essential clauses and provisions, you have the flexibility to tailor them to your company's unique needs. Make adjustments seamlessly to ensure that the contract aligns perfectly with your requirements.
  2. Download and Personalization Options: Once you've found the ideal template and made any necessary modifications, download it in your preferred format, whether it's Microsoft Word or PDF. This allows you to further personalize the document, add company logos, or make minor tweaks to suit your branding and style.
  3. Effortless Electronic Signatures: BoloForms Signature simplifies the signing process by offering secure electronic signatures. Both you and the employee can sign the contract digitally, eliminating the need for printing, scanning, or mailing documents.
E-Signature at BoloForms Signature
  1. Secure Document Storage and Accessibility: Once the contract is signed, BoloForms Signature offers convenient document storage. Your agreements are securely stored in the cloud, accessible anytime, anywhere.

Ready to stop wasting time and start building a solid foundation for your team? Sign up for BoloForms Signature today and experience the effortless path to secure and successful employment relationships!

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What are the different types of employment contracts?

There are several main types of employment contracts, each suited to different situations:

  • Permanent Employment Contract: Offers long-term employment with no set end date.
  • Temporary Employment Contract: For a predetermined period to fill a specific need.
  • Independent Employment Contract: Engages a freelancer or contractor for a specific project.
  • Part-Time Employment Contract: Defines the terms for a position with less than full-time hours.

What are the key elements of a good employment contract?

A well-drafted employment contract should typically include:

  • Job title and description
  • Start date and compensation details
  • Work schedule and location
  • Confidentiality and intellectual property clauses
  • Termination clause outlining grounds and procedures
  • Dispute resolution process

Why are employment contracts important?

Employment contracts benefit both employers and employees by:

  • Clarity and Security: Establishing clear expectations and rights for both parties.
  • Reduced Risk: Minimizing legal disputes by outlining terms and conditions.
  • Improved Working Relationship: Fostering trust and transparency through clear communication.

What are some common mistakes to avoid in employment contracts?

  • Lack of Clarity: Unclear or ambiguous language can lead to misunderstandings.
  • Missing Key Elements: Omitting important details like termination clauses or dispute resolution.
  • Non-Compliance with Laws: Failing to adhere to relevant labor laws can result in legal issues.

When should I consult with a lawyer about an employment contract?

It's always advisable to consult with an employment lawyer for situations like:

  • Reviewing a contract before signing
  • Addressing complex legal issues
  • Ensuring compliance with specific state or federal regulations.


Employment contracts are vital for protecting both employers and employees. By understanding the different types of contracts and utilizing adaptable templates like those offered by BoloForms Signature, you can establish clear expectations, maintain compliance with regulations, and foster a positive working environment. Remember, consulting with a lawyer is always advisable for specific legal guidance.

So, utilize the power of BoloForms Signature to streamline your employment contract management and ensure a smooth and successful working relationship with all your employees.


Paresh Deshmukh

Co-Founder, BoloForms

7 May, 2024

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