# Employment Contract Generator

> Source: https://bryter.com/de/use-cases/employment-contract-generator/

The tool enables HR departments to automatically generate an employment contract, fully compliant with all applicable laws and the company’s internal policies.

#### Background

A distributed workforce is becoming popular, as HR departments source the best talent across borders. At the same time, the pandemic has forced companies to pivot and take their work fully remote. 

Despite the potential to match a company’s hiring needs with the global talent pool, HR and legal teams are struggling to stay on budget and make the necessary hiring, as they face a number of issues in bringing on the new hires.  

#### Challenges of employee contract creation

Each new remote employee brings along local specificities that need to be considered when hiring them. Potential employee misclassification, compliance with local labor laws, employment contract creation, payroll and taxes become a significant burden. And that’s only one part of the issue. 

On the other hand, HR and legal teams need to draw up offer letters and contracts that cover a range of cooperation arrangements, from full-time employment to hiring independent contractors, and often need to manually align with local regulations and update these records continuously in order to reflect the latest regulatory changes. To do this efficiently, they need to rely on existing cases, which translates to time spent searching for previous similar scenarios. 

#### Adverse impact of manual employee contract creation

This not only takes up time that could be spent on value-added work, but as legal requirements for employment agreements vary based on location and type of employment, manually drafted contracts are prone to human error. Searching for documents becomes a burden when individuals create and save the documents on their desktops and have to manually upload these to a centralized database. 

#### Automating employee contract generation

With BRYTER, HR departments can draft agreements in a fully automated process. The user is guided through a series of questions and based on these inputs, the modular logic selects the correct template and adjusts the document to comply with local laws and internal guidelines for the specific job level and role.  

This means that if a company wants to hire employees in a new market, the legal team will simply determine the “logic” behind the hiring. Then once the hiring kicks off, the legal team would not have to check each individual contract. Instead, the new employee would fill in the information about the role and their residence. The mechanism would then produce the contracts in line with local regulations, have them signed by employees through integrations with the group, and then have them securely stored in the employee records folder. 

To keep templates up to date, companies can store and update clauses and templates within the tool itself and adjust the underlying logic where needed. To create one source of truth, our [**HR automation**](https://bryter.com/team/hr-automation/) tool can be integrated with the existing infrastructure so that documents are always stored in the right place.