Contract-to-Hire Agreements

In today’s ever-changing job market, many companies are starting to embrace contract-to-hire or temporary-to-hire agreements. You can find contact-to-hire workers in many roles such as marketing, sales, public relations, information technology, accounting, and project management.

Definition of a Contract-to-Hire Agreement

A contract-to-hire agreement is a short-term work relationship that may vary from six months to one year with an option to become a full-time staff member at the end of the contract. Companies like these agreements because they do not have to make a permanent commitment to the temporary employees until they have proven themselves to be a right fit for the company.

A contract-to-hire agreement will last only for a certain amount of time. At the end of the agreement, the employer can decide to hire or part ways with the contractor.

Contract-to-hire employees are different from temporary workers and direct hires. Temporary workers satisfy short-term needs, such as seasonal help or hired when regular workers go on vacation or maternity leave. Direct hires are often hired immediately as full-time permanent staffers.

Creating a Contract-to-Hire Agreement

You should make sure the contract is detailed and explains the working relationship between the company and the contractor. The agreement should be understandable to the contractor and satisfy the goals of the company. A contract-to-hire agreement may include the following:

  • The hourly rate or method of pay to the contractor
  • The length of time of the contract (usually six months to one year)
  • Outline the specific duties of the contract worker
  • Explain employee performance evaluation methods

If the contractor is handling sensitive and confidential information, you may want to include a confidentiality clause in the agreement that requires the contractor not to disclose sensitive information about the company.

An employment law attorney can help you create a contract-to-hire agreement that will address your needs and the interests of the contract-to-hire employee.

Benefits of a Contract-to-Hire Agreement to Employers

A contract-to-hire agreement gives hiring managers a sufficient amount of time to assess a worker’s technical, oral, and written communication skills prior to making a long-term commitment. Simply stated, you will learn if the worker can do the job. Furthermore, a contract-to-hire agreement will give you adequate time to acquire the budget needed to hire the contract employee full time.

Benefits of a Contract-to-Hire Agreement to Employees

A contract-to-hire agreement offers many benefits to the employee. The agreement allows contractors to be flexible and not committed to one company. Contract-to-hire jobs give candidates the opportunity to career network and expand their contacts in the job market.

Contractors often are experts in their field and the work arrangement can be less structured as compared with being a full-time member of a company. Moreover, contract-to-hire workers have the right to refuse an offer to go full time when they are no longer interested in working for a firm.

Contact an Employment Law Attorney For Legal Advice

A contract-to-hire job may fit the employment needs of your company. If you are considering exploring the options and benefits of hiring a contract-to-hire employee, contact an employment law attorney who can help you develop an effective contract-to-hire agreement that will protect you and your company.