Society For Human Resource Management (SHRM) Certified Professional Practice Exam

What should be reviewed in an employment contract?

1. Performance requirements

2. Lengths of the agreement

3. Job description

4. All of the above

The correct answer is: All of the above

An employment contract serves as a foundational document that outlines the terms and conditions of employment between an employer and employee. Reviewing all aspects, including performance requirements, lengths of the agreement, and job descriptions, is crucial for several reasons. Performance requirements clarify what is expected from the employee and establish metrics for evaluation, which can help in managing employee performance and goal alignment with the organization’s objectives. The length of the agreement is essential to define the period during which the employee will be bound to the terms of the contract. This could include a fixed-term contract or an indefinite duration, which helps both parties understand their commitments and conditions for renewal or termination. A job description provides details on the roles and responsibilities of the employee, ensuring clarity on what the job entails and aiding in the recruitment process as well as performance evaluations. Together, these components ensure that both parties have a clear understanding of their rights and obligations, which can foster a more positive work environment and mitigate potential disputes. Thus, a comprehensive review of all these elements is necessary to create a well-rounded employment contract.