What is confusing when hiring an executive driver is what kind of employment contract should be prepared. In addition, when hiring workers, a notification of working conditions is also required. In this article, we will explain in detail the differences between an employment contract and a notice of working conditions, matters to be written, points to note, etc. It will be helpful for those who do not know how to draft an employment contract.
1. What is an employment contract?
When a company hires full-time employees, contract employees, part-time workers, etc., an employment contract is concluded between the two parties. An employment contract is a contract under which an employer gives a certain amount of remuneration in exchange for the work done by the worker. In the case of temporary workers, the employment contract is with the temporary agency, not with the company that provides the labor force. An “employment contract” is a document that clarifies the contents of an employment contract. Issuing an employment contract has the advantage of making it clear that the content has been confirmed and agreed between the employer and the worker. However, the law does not require the issuance of an employment contract. With verbal confirmation, the company will not be penalized even if it is not issued in writing. However, verbal confirmation alone can lead to misunderstandings later between employers and workers, such as ``this is how the contract should have been'' and ``I didn't hear that.'' In order to avoid such troubles, it is common to exchange an employment contract. In addition, there is a notice of working conditions in a document that is very similar to the employment contract, and it is obligatory to issue it. Employment contracts require both parties to sign and affix their seals to indicate that they have agreed to the terms of the contract. There is none. The employment contract and the notice of working conditions may be issued separately, and it is also possible to add necessary items to the notice of working conditions and make it serve as an employment contract.
2. What is a notice of working conditions?
A notice of working conditions is a document issued by an employer to notify workers of working conditions such as working hours and place of work. The form is free, but the following matters to be specified (absolutely specified items) are stipulated.
・Period of labor contract
・Where you work and what you should do
・Start/finish time, break time, holidays/vacations
・How to determine, calculate, and pay wages, closing dates, timing of payments, pay raises
・Matters related to retirement, including reasons for dismissal
The notice of working conditions does not necessarily include only the above items. In the notice issued to the executive driver, it is a good idea to include a confidentiality obligation so that even if there is an opportunity to learn confidential information related to the executive, it will not be leaked to the outside.
It is common to issue notices of working conditions in paper form, but if the consent of the worker is obtained, there is no problem even if they are issued in an electronic format such as PDF. Please note that if you do not notify your working conditions, you may be fined up to 300,000 yen. Please note that the notification of working conditions will not be signed or stamped. For this reason, it may be difficult to prove that you have notified the employer in the event of trouble with working conditions. Therefore, it is a good idea to issue a “Notification of Working Conditions and Employment Contract” that also serves as an employment contract. Two copies shall be prepared, which shall be signed and sealed by both the employer and the worker, and one copy shall be kept.
3. Difference between employment contract and outsourcing contract
When a company hires a driver, in addition to an employment contract, there is also a method of consignment contract. A brief explanation of this difference is as follows.
・Employment contract: A contract in which the worker provides labor according to the employer's instructions, and the employer provides remuneration in return.
・Business consignment contract: A contract that does not involve an employment relationship and that one party performs a specific business and the other party pays remuneration for the results.
When a company signs an employment contract with a driver, it is necessary to give compensation such as a salary for working. They are covered by social insurance such as industrial accident insurance and employment insurance. On the other hand, if you sign a business outsourcing contract, you will be paid for the completed work and deliverables. There is no employer-employee relationship, and there is no need to enroll in social insurance. The advantages of outsourcing a driver to a company include:
・You can request overtime and work on holidays under the contract
・Complicated labor management, cost calculation, payment, etc. are entrusted to the outsourcing company.
4. What is a business consignment contract?
When concluding a business consignment contract, it is not required by law to prepare a business consignment contract. There is no problem with verbal confirmation, but in order to prevent misunderstandings and troubles, it is desirable to prepare a document that can prove the contract contents. Since there is no fixed format, it is a good idea to clarify the items that are likely to cause trouble, and have both parties sign and seal. Items that should be included include the details of the work to be outsourced, the period of outsourcing, the outsourcing fee and payment method, and the reason for canceling the contract. A confidentiality agreement is also required.
Working conditions notification is mandatory!
When hiring an executive driver, it is not mandatory to create an employment contract, but it is necessary to issue a labor notification. However, if you do not have an employment contract, you may later have troubles such as "It is different from the contract content". Therefore, it is a good idea to add items to the labor notice and create a document that also serves as an employment contract. By signing and affixing seals, both parties can prove that they have agreed to the terms of the contract and that they have notified the working conditions. There is also a way to outsource the work of executive drivers.
【 TransACT Group 】