An employment contract is a written agreement between an employer and an employee. Although not used in every hiring and employment situation, employment contracts help to clarify the terms of employment and can assist in resolving any disputes that may arise during the working relationship.
Once both parties sign an employment contract, it becomes legally binding. If either party violates the contract terms, they could face legal consequences for their actions.
Typically, a written employment contract includes information such as:
- Wages, salary, and benefits;
- Termination procedures;
- Duties and responsibilities of both parties;
- Job title;
- Time frame;
- Vacation and sick leave;
- Confidentiality clauses;
- Dispute resolution procedures; and
- Severance details.
The employer and employee may include any provisions they desire as long as the contract’s terms are not fraudulent, illegal, or against public policy. The agreement must not be signed under duress, coercion, misrepresentation, or undue influence.
Without an employment contract, the employee is generally considered at-will. This means that an employer can terminate an employee at any time, for any reason or no reason, as long as the reason is not illegal. However, at-will employment situations may still involve negotiations regarding employment terms.
What is the Benefit of an Employment Contract?
An employment contract’s primary advantage is its level of detail. Both parties can clearly outline the employment terms, facilitating negotiation and allowing for compromises. Additionally, the contract can serve as written evidence during a dispute, if necessary.
What Can Be Discussed During Employment Contract Negotiations?
While most state laws do not require employers to engage in employment contract negotiations, if they do occur, some commonly discussed topics include:
- Wages and benefits;
- Work hours;
- Various clauses, such as non-compete or non-disclosure clauses; and
- Length of the employment arrangement.
However, both parties may want to address more specific items when negotiating an employment contract, explored in more detail below.
Work Location
When discussing work location during employment contract negotiations, consider mentioning potential alternative locations that may be more convenient for you or ask about the possibility of remote work.
For example, if you live closer to a satellite office or have personal commitments that make working from home more feasible, bring up these points in the negotiation. Additionally, ask about job-related travel requirements, such as attending conferences, visiting clients, or participating in offsite training. Understanding the extent of travel expectations and whether the employer covers associated expenses like transportation, accommodations, and meals is crucial.
If the job may require relocation, discuss whether the employer provides financial assistance for moving expenses, temporary housing, transportation costs for shipping belongings, storage fees, and real estate agent fees, among other expenses.
Fringe Benefits
During negotiations, inquire about the availability of fringe benefits that can enhance your overall job satisfaction and work-life balance.
Examples of fringe benefits include:
- Daycare or childcare resources.
- Gym or wellness program memberships.
- Free or discounted parking.
- Flexible work schedules.
- Professional development opportunities.
- Employee assistance programs.
In some cases, these benefits might be available but only offered upon request, so express your interest in them during the negotiation process.
Advancement Opportunities
If the prospect of career growth within the company is important, clarify your expectations during negotiations. For example, you may ask about the typical career trajectory for your position and the average timeframe for promotions or raises. Additionally, inquire about opportunities for skill development, such as in-house training programs, mentorship, or support for continuing education.
By discussing advancement opportunities upfront, you can set realistic expectations for your career progression and avoid potential misunderstandings down the line.
Company Goals, Policies, and Vision
Before committing to a job, ensuring that your employer’s goals, policies, and visions align with your personal values and career aspirations is important.
During negotiations, request access to the company’s vision plan, mission statement, or any other relevant documents outlining its long-term objectives and core values. Evaluate whether the company’s commitment to diversity and inclusion, environmental sustainability, or community engagement resonates with your beliefs. Additionally, consider the company’s approach to work-life balance, employee recognition, and overall corporate culture.
By understanding these aspects, you can decide whether the company is the right fit for you.
Negotiating an employment contract is an opportunity to address concerns or issues that may not be part of a standard employment agreement, as many employers are open to negotiating terms.
What Can Be Done if I Have a Dispute Over an Employment Contract Term?
Employment contracts are crucial in documenting the agreed-upon terms and conditions between an employer and an employee, ensuring that both parties understand their responsibilities and rights.
These contracts also include a dispute resolution protocol outlining the steps to be taken if a disagreement arises. To be prepared for any future questions or disputes, it’s important to keep a copy of your signed employment contract for easy reference.
Employment disputes can take many forms, such as disagreements over wages, hours, job responsibilities, or working conditions. In most cases, disputes can be resolved internally within the company. For example, if employees believe they have been unfairly passed over for a promotion, they might approach their supervisor to discuss the matter.
If the issue isn’t resolved at this level, the employee could raise concerns with the human resources department. Human resources personnel are trained to handle such disputes and may facilitate a resolution by mediating between the employee and their supervisor or implementing new policies to address the issue.
However, in some situations, internal resolutions may not be effective in resolving the dispute. In these cases, the employee may need assistance from an external authority, such as a government agency like the Equal Employment Opportunity Commission (EEOC). The EEOC is responsible for enforcing federal laws that make it illegal to discriminate against employees based on factors such as race, color, religion, sex, national origin, age, or disability.
For example, if employees believe they have been a victim of workplace discrimination and their employer has not adequately addressed their concerns, they can file a complaint with the EEOC. The agency will then investigate the claim and determine whether sufficient evidence exists to pursue legal action against the employer.
In some circumstances, the employee may need to file a lawsuit against their employer to resolve the dispute. For example, if an employee is fired without proper cause, in violation of their employment contract, they could sue their employer for wrongful termination. In such a lawsuit, the employment contract serves as a critical piece of evidence, as it outlines the agreed-upon terms and conditions of employment, which can help establish whether the employer breached the contract.
Do I Need an Attorney for Help with Employment Contract Negotiations?
A skilled contract attorney can help you understand your rights under state and local employment laws, review employment contracts, and represent you in a civil suit if necessary. Consult with an experienced employment law attorney to ensure your interests are protected during contract negotiations.
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