MG Legal Consulting (Lao)

5 precautions when drafting labor contracts to reduce conflicts in the organization

An unclear labor contract is a time bomb that can lead to lawsuits and damage to the company’s image. To prevent such problems, employers should pay attention to the following details:

Points to be clearly stated:

  • Job Description: Must be clearly stated for use in performance evaluation.
  • Probationary Period: Clearly state the duration and conditions for passing or failing the probationary period in accordance with labor laws
  • Welfare and Allowances: In addition to the basic salary, overtime pay, bonuses, and social security must be written correctly.
  • Internal Rules: Referencing the company’s internal rules in the contract will help simplify management.
  • Termination Conditions: Must specify the reason and the procedure for prior notice to avoid being sued for unfair dismissal.

Having a consultant review the contract will help fill in any gaps and create comfort for both parties.