Per Diem Employee Agreement: What You Need to Know
Per diem employees, also known as freelance or contract workers, are hired on an as-needed basis. They are not considered full-time employees and do not receive the same benefits such as health insurance, paid time off, or retirement plans. Instead, they are paid a fixed rate based on the number of hours worked or the project completed.
If you are an employer who needs a per diem employee, it is essential to have a per diem employee agreement in place. This agreement outlines the terms and conditions of the employment relationship, including compensation, work responsibilities, and expectations. Here`s what you need to know about per diem employee agreements.
1. Define the Scope of Work
The per diem employee agreement should clearly define the scope of work. It should outline the duties and responsibilities of the employee, including the expected outcomes, deadlines, and deliverables. The agreement should also state whether the employee is expected to work on-site or remotely.
2. Set the Hourly Rate or Project Fee
The per diem employee agreement should specify the hourly rate or project fee to be paid to the employee. It should also define the payment terms, such as when the employee will be paid and how often. Be sure to include any expenses the employee may be responsible for, such as travel or equipment costs.
3. Address Confidentiality and Intellectual Property
If the per diem employee will have access to sensitive information or will be creating intellectual property, the agreement should include a confidentiality and intellectual property clause. This clause will protect the employer`s trade secrets and prevent the employee from sharing confidential information or using the intellectual property in any way without permission.
4. Include a Termination Clause
The per diem employee agreement should include a termination clause that outlines the circumstances under which the employment relationship may be terminated. This may include situations such as non-performance, breach of contract, or changes in business needs. It should also specify the notice period required for termination.
5. Comply with Employment Laws
Finally, make sure your per diem employee agreement complies with relevant employment laws. Many states have specific laws related to freelance or contract workers. These laws may include requirements for written contracts, minimum wage, or worker`s compensation insurance.
In conclusion, a per diem employee agreement is a vital document that protects both the employer and the employee. It ensures that both parties understand their rights and responsibilities and that the terms of the employment relationship are clear. If you are an employer or a per diem employee, make sure you have a written agreement in place before beginning any work.