What are conditions of employment?

Conditions of employment are the requirements a person must meet to get or keep a job, such as passing a background check, holding a license or following a uniform policy.

In shortConditions of employment are the requirements an employer sets for starting or continuing in a job. Some apply before day one (an offer that is contingent on a reference or background check, proof of work eligibility, a valid driver’s license). Others apply for as long as the person works there (keeping a certification current, following safety rules, being available for the agreed shifts). They are different from terms of employment, which describe what the employer provides, such as pay, hours and benefits.

Conditions vs. terms

Two halves of the employment deal
Conditions of employment Terms of employment
What they describe What the employee must meet or do What the employer provides and how the job is structured
Examples Pass a background check, keep a forklift certification, wear safety boots, work weekends as agreed Hourly rate, pay frequency, schedule type, PTO, benefits
Where they are written Offer letter (contingencies), handbook, job description Offer letter, employment contract, handbook

Keeping the two apart makes offer letters clearer. A sentence like “This offer is contingent on a satisfactory background check and proof of eligibility to work in the US” is a condition. “You will be paid $19 an hour, every other Friday” is a term.

Before day oneBackground checkProof of eligibilityDriving recordFor as long as the job lastsDriver licenseCPR cardSafety rulesexp. Mar 3
Pre-hire conditions are checked once. Ongoing ones expire, so they need a date and a reminder.

Pre-hire and ongoing conditions

Worked example: a home care agency

Conditions that expire

A home care agency hires an aide with three conditions: a clear background check before the first visit, a valid driver’s license and car insurance because the job includes driving between clients, and a CPR certificate kept current. The background check is done once. The other two expire.

Six months in, the aide’s CPR card expires on March 3. Nobody notices until a client’s family asks in April. For a month the aide did not meet a condition of employment, and the agency has to decide what to do about visits already made. The fix is to store expiry dates in the employee file with reminders. EZTime’s digital employee file can send expiry reminders, so the card is renewed before March 3 instead of after.

Mistakes that are specific to conditions of employment

Tracking conditions that expire

Apply conditions the same way to everyone in the role. A condition that is enforced for some employees and quietly waived for others is hard to defend later.

Second example: a forklift certification

A distribution center requires forklift operators to keep their company forklift certification current, with an evaluation at least every three years. The center records each operator’s evaluation date in their digital employee file.

Reminders go out 60 days before each due date, and evaluations are scheduled during paid shifts. When one operator is on leave on his due date, he is assigned to non-driving tasks on his return until the evaluation is done the same week.

Put the expiry date in the offerWhen a job needs a license or certificate, ask for its expiry date on the first day and set the renewal reminder then. It takes one minute and prevents the month where nobody knew the card had lapsed.

Questions people ask

What is a conditional offer of employment?

An offer that becomes final only when stated conditions are met, such as a background check, references or proof of work eligibility. The offer letter should list each condition.

Can conditions of employment change?

Generally, an at-will employer can change ongoing conditions going forward, but changes should be communicated clearly and in advance, and they must still follow the law and any contract or union agreement.

What is the difference between conditions and terms of employment?

Conditions are what the employee must meet or do. Terms are what the employer provides, such as pay, hours and benefits. Both usually appear in the offer letter and handbook.

Is drug testing a condition of employment?

It can be, where the law allows it. Rules vary a lot by state and by job, especially for marijuana, so check the law where the employee works before writing it into an offer.

Can a background check be a condition of employment?

Yes, many offers are contingent on one. If a screening company runs it, the employer must follow the FCRA steps, and some states and cities limit when and how checks can be done.

What should happen when an employee stops meeting a condition?

Follow the written rule, such as reassigning the person or giving time to renew, and apply it the same way to everyone in the role.

Related on EZTime

Related reading

Keep HR paperwork and updates in one place

Digital HR forms, e-signatures and a digital employee file with expiry reminders, plus announcements by location, department or role.

Disclaimer: This explanation of conditions of employment is general information, not legal, payroll or tax advice; rules differ by state and city and change over time, and the examples are fictional.