In this article examines the application of the principle of «effective contract», the contracting institution to be introduced into the system of labor relations. Purpose of the article is to offer an effective method of the contract for the design of incentives to domestic enterprises of different ownership forms, including the budget. Distinctive features of the work, reflecting its novelty is the use of a set of methods and techniques for building an effective motivational model, as well as practical experience in implementation of the proposed instruments in the activities of Russian enterprises. At the heart of the functioning of this institution are techniques improve the fairness of the forms and payroll systems. With the proposed program can be measured by the individual results of specific employees. Using the «effective contract» to be used in schools to improve the motivation of the teaching staff.