When recruiting an employee, you and the employee must conclude an employment contract that states the details of the employment relationship. The employment contract may also state the fringe and employee benefits. Ensure that the employment relationship complies with the labour legislation and the applicable collective agreements.
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Contract of employment
A contract of employment is concluded when you and your employee agree on the performance of work. Concluding the contract in writing is advisable.
Collective agreements specify the terms and conditions with which your company’s employment contracts and employment relationships must comply.
Employer’s labour costs
Employer’s labour costs consist of salaries, indirect wages, employer contributions and other labour costs.
Fringe benefits are non-monetary benefits that your company provides to its employees. They can be any goods, services or other benefits of value.