Employment Contracts | Plane Hire Resources

When you’re hiring in new countries, having clear and comprehensive employment contracts is essential. These contracts help protect your company, your employees, and the legal entity that hires them. They lay the foundation for a positive working relationship by outlining everyone’s rights, responsibilities, and expectations right from the start.As a general rule, most countries require certain key details in an employment contract. When you add an employee to the Plane platform, we’ll collect the following information to include in their contract:

Full legal name

Job title

Job description

Salary (in local currency)

Work hours

Termination terms

It’s important to customize your employment agreements to meet the specific legal requirements of each country. These factors might include local labor laws, minimum wage regulations, working hours, leave policies, and intellectual property rights. Covering these details helps avoid misunderstandings and ensures a smooth, compliant working relationship.Plane ensures all contracts are localized and compliant with the necessary labor laws. Here’s what you need to know about employment contracts created through Plane.

What Should You Consider Including?

Probationary Period Most countries allow for a probationary or trial period, usually lasting 3 to 6 months. If you’re hiring someone you haven’t worked with before, a probationary period can help ensure the arrangement is a good fit for both parties. However, keep in mind that some countries, like Chile and Belgium, don’t allow probationary periods. Check with us if you’re unsure.If you’d like to include a probationary period, just make a note in the Onboarding task when adding the employee to Plane or email us at support@plane.com.Additional Incentives Compensation often includes more than just a base salary. If you’d like to offer additional incentives as part of the compensation package, you can specify these in the "Additional Incentives" section during onboarding.Here are some common incentives that can be added to the employment contract:

Signing bonus (one-time)

One-time or recurring allowances/stipends (e.g., healthcare, home office setup, internet, work-from-home equipment, education)

Guaranteed annual bonus

Some countries even require mandatory work-from-home allowances for remote employees. We’ll let you know if that applies.Please note that we can’t include variable compensation, such as bonuses or commissions, in the employment contract, as we don’t manage employee performance directly. Instead, you can create a separate agreement that outlines these terms.13th and 14th Month Bonuses In some countries (particularly in Europe and Latin America), employees are entitled to a mandatory 13th month bonus, typically paid in December as a Christmas bonus. Some countries also have a 14th month bonus, paid when employees take paid time off.When hiring in these countries, we’ll ask whether these bonuses should be included in the employee’s base salary or paid as additional payments. We’ll confirm your preference during onboarding.Mandatory Payments In some countries, Collective Bargaining Agreements (CBAs) may require employers to provide certain benefits, such as guaranteed raises, supplemental healthcare, or life insurance. If any of these apply, we’ll communicate the requirements to you during the onboarding process.Vacation & Sick Time Different countries have varying laws regarding paid time off (PTO) and sick leave. If you want to offer a more generous policy than what is legally required, let us know during the onboarding process. We can include additional PTO and sick leave in the contract as long as it meets or exceeds the legal minimum.Statutory Benefits Statutory benefits vary from country to country and may include things like maternity/paternity leave, healthcare, and pension contributions. You’re welcome to offer more generous benefits, but they must at least meet the local legal requirements.

Timeline

Once the employee completes their profile, we aim to provide a first draft of the contract within five business days for your review.

Frequently Asked Questions

Check out our answers to the most frequently asked questions below.

I have a template contract we use for U.S. hires. Can you adapt it for international employees?

Can I add a reference to our IP agreement?

Can I make changes to the employment contract?

I included the employee’s stock options during onboarding, but they’re not in the contract. Did you forget?

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Employment ContractsEmployment Contracts

What Should You Consider Including?

Timeline