Employment contract with hourly wage: sample design

Hourly pay is a special pay system that allows the employer to pay employees only for the hours actually worked. Let us consider in more detail all the nuances of compiling such documents, as well as the labor contract itself with hourly wages (sample document).

Definition

An hourly pay system is considered a form of time-based payroll with employees. Its use is relevant in cases where it is impossible to standardize the employee's labor activity. When calculating the salary, the management takes into account not only the hours worked, but also the qualifications of its employee.

The legislation does not establish a specific concept for the hourly wage system. Under this system, we can mean special accrual of funds. Hourly pay may be:

1. Plain. The cost of an hour is equal to a fixed amount, the size of which does not depend on the final result.
2. With a normalized task. An employee may receive additional remuneration if the task is exceeded.

In any case, an employee must conclude an employment contract with an hourly wage (a design sample will be presented later).

When applied

The hourly system is applicable only if it is provided for by an employment contract between the parties. Recently, this method has been quite popular. It can be suitable for teachers, tutors, nannies, waiters, cleaners.

In other words, to conclude an employment contract with hourly wages (an example is presented below) is convenient for those citizens whose workload varies on different days.

Advantages and disadvantages

The positive aspects of such a system include:

1. For the head: saving money (money is accrued only for the hours worked), the ability to track the effectiveness of hours worked, a convenient system of settlements with a part-time employee.
2. For the employee: convenience when accounting for working hours with uneven workload.

In addition, there are negative aspects:

1. For the manager: some difficulties in calculating salaries, the necessary control over working time.
2. For the employee: lack of additional bonuses or bonus accruals, possible abuse by the management of their position (a large amount of work in one hour).

System implementation

To implement an hourly payment system, the manager may have to bring in another person who will have to take into account the time worked, or do it yourself. The procedure for using such a system should be established in a special local document of the organization. It will also be necessary to issue an order that displays the tariff schedule for specific specialties with hourly pay.

Hourly pay can be used only if an agreement is concluded between the parties with hourly pay (sample provided earlier). If the organization has the relevant documents that determine the operating procedure for the hourly system, the employee must be familiar with them. Be sure to include in the employment contract with an hourly wage a sample of the employee’s working hours.

Is there a minimum

At the legislative level, a minimum for hourly pay has not yet been established. Nevertheless, calculations are underway. The basis is the hourly tariff rate and is multiplied by the hours worked.Let us give an example of an employment contract with hourly wages - a model for the university: a German teacher for 1 hour of his individual work with a student receives 300 rubles. The work is not standardized, because on one day there can be two students, and on the other - more or no one. In one month, the teacher worked 75 hours. Therefore, for this month he will receive 300 x 75 = 22 500 rubles.

In addition, it should be borne in mind that no matter what prices are provided for in the organization, if a citizen has worked out the production standard for a month, he cannot receive less than the subsistence level.

Documentation

An enterprise contract can be drawn up with hourly wages. Sample, what documents are needed for the possibility of such employment - such information should be in the personnel department.

You can record the fact of hourly payment:

1. In the employment contract. The agreement should spell out the use of the hourly pay system and rate. If a region coefficient is used in the region, then it is indicated. There is no need to indicate the amount of hours an employee must work and the length of the working week.
2. In local documents. Such documents include a regulation on remuneration, which is developed within the framework of a specific organization and is valid for each employee. This document is familiar to all employees under the signature. Only in this case does it have legal force. The provision should indicate how to calculate the length of working time, how to calculate salaries and bonuses (if any).
3. In the staff list. This document is valid in the specific organization where it was created. It reflects data on the number of employees, the structure of the organization. In the staffing table, a note is made about hourly work in the column where the tariff rate is indicated.
4. In the order. The condition for hourly work may contain an order for employment.

Consider what an employment contract with hourly wages looks like (a sample document is presented below).

Employment contract

The legislation regulates citizens with irregular working hours to conclude an employment contract with hourly wages. Paperwork may also include an additional agreement instead of a contract. However, the document should contain:

• hourly rate (salary);
• cash accrual procedure;
• terms of payment of bonuses and deprivation;
• payment terms on holidays, weekends and night shifts;
• payroll days;
• preconditions (if provided: test, social guarantees, etc.).

When drawing up an employment contract, it is necessary to include in it all conditions that relate to hourly work, as well as those that are standard. It:

• subject of agreement;
• key points;
• validity;
• terms of payment;
• rights and obligations of both parties;
• warranties and compensation;
• a responsibility;
• assumptions;
• details of the parties.

An hourly-paid labor contract, a sample of which was submitted earlier, can be drawn up in the established form of organization.

Transfer

You can transfer an employee to hourly pay only with his consent. An employment contract or an additional agreement is concluded with him. Also, the employee must familiarize himself with local acts prescribing the rules of work according to an irregular schedule, as well as regulate the calculation of salaries.

Payroll is calculated according to the hours worked. This time must be multiplied by the tariff rate.

There are special counting methods that are also established by regulatory documents. For example, this may be a bonus system, which depends on the results obtained and the effectiveness of the given employee.

You can calculate the salary with hourly pay using the following formula:

• RFP = PM x HF, where
  ЗП - salary;
  PM - tariff for a specific employee;
  HF - actually worked time.

Important points

Particular nuances are associated with the terms of payment of holidays, non-working holidays, etc. Similar issues are regulated by labor law. Nevertheless, the solution of some issues remains at the discretion of both parties to labor relations. And such nuances should be spelled out, firstly, in the labor agreement, and secondly, in regulatory documents. For these reasons, the employee needs to carefully familiarize themselves with all the documents that are offered for signature.

A special procedure for remuneration is established for employees of budgetary organizations. First of all, we are talking about teaching staff. Calculation of cash payments does not occur according to the usual scheme that was presented earlier, but according to a special one. When calculating wages, work experience and tariff factors are taken into account.

Foreign nationals working on an hourly basis need to be guided by the same principles as other workers. All relations are regulated by an employment contract.

Of particular interest is the payment of non-working holidays. According to legislative norms, each employee who has signed an employment contract with hourly wages will receive compensation from the salary for the days worked. But again, they will pay after the time worked. And the established norm should be spelled out in the local document of the organization.

How to calculate vacation pay? As a general principle, based on average monthly earnings. It is necessary to add up the funds received in fact for the last year and divide the result into twelve.

So, for those employees who think whether to switch to an hourly schedule or not, you need to weigh all the pros and cons. In addition, there are professions where hourly work is more acceptable. An important point in all cases is a thorough study of all documentation: from employment contracts and additional agreements to local and regulatory acts of the organization.