Employment contracts outline the terms of an employer-employee relationship. Written employment agreements may not be necessary for every employment relationship; however, it is advisable to use employment contracts when hiring high-level professionals and executives to ensure clarity, define the scope of the relationship, and set expectations for each party.
General Terms Included in Employment Contracts
Duration of employment: Some jobs may be for a limited period. The employment contract should include the duration of employment whether it is for a period of weeks, months, or years.
Grounds for Termination: The termination clause should include grounds for termination of employment and the prohibited behaviors that may be cause for employment termination. Employers can also define separation and severance terms.
At-Will Contract: Sometimes, it may be necessary to include this term so that employees know their employment is at-will, meaning that the employee may quit at any time, and the employer may also fire the employee at any time. However, firing employees for illegal reasons is prohibited.
Salary: Employment contracts should include the stated salary and compensation to which the employee is entitled.
Benefit: This term should outline the benefits negotiated with the employee, such as health insurance coverage, retirement benefits, and life insurance benefits.
Leave: This term should define the leave policy of the company regarding vacations and sick leave, to which an employee is entitled during the scope of employment.
Duties and Responsibilities: Employers may define the various duties and responsibilities the employee is expected to perform.
Dispute Resolution: Employers can provide methods and means for resolving conflicts during employment, as well as preferred methods of dispute resolution involving employment. Many employers wish to avoid litigation and may require arbitration in cases of employment claims.
Choice of Law: Employers can also determine which state laws will govern a dispute. This can obligate the employee to only litigate and be governed by the laws of the state identified in the employment agreement. Many employers have offices in several locations but are only incorporated in one state. Employers can limit uncertainties regarding which state laws will apply to disputes.
Intellectual Property Ownership: Employers should notify employees of the intellectual property rights. Employers can define ownership rights to patents, copyrights, and trade-secrets of the company that are derived through the employee’s job performance.
Confidentiality: This term can be utilized to define confidential information of the company and the employee’s obligation not to disclose confidential information to outside parties.
Privacy: This term outlines an employer’s obligation to keep employee’s personal information private.
Noncompetition: Employers may bar employees from competing with the employer or working for a competitor.
Non-disparagement: Employers can prevent employees from defaming and disparaging comments about the company.
Written employment agreements tend to benefit the employer and employees seldom have the power to truly negotiate the terms of the agreement. When employment contracts include terms that violate public policy or considered unconscionable, they may not be upheld in a court of law.
Cherry Hill Employment Lawyers at Sidney L. Gold & Associates, P.C. Help Clients with Employment Contracts
If you or someone you know needs assistance with an employment contract, the Cherry Hill employment lawyers at Sidney L. Gold & Associates, P.C. can assist you in navigating the myriad of considerations involved in contract negotiations. Contact us online or call us at 215-569-1999 for a free consultation today. Located in Pennsauken, New Jersey, we represent clients throughout South Jersey, including Cherry Hill, Haddonfield, Marlton, Moorestown, and Mount Laurel.