What Should an Employer Include in an Employment Contract?

Employers need employment contracts for a variety of reasons.

Before delving into what an employer should include in an employment contract, it’s a good idea to first grasp what an employment contract is and why a business needs one with its workers.

An employment contract is an agreement made between an employer and an employee that specifies the conditions of their work relationship, such as salaries, obligations, and duration of employment.

One of the most important reasons why an employment contract is necessary for companies is that it may reduce legal issues between employers and employees.

For example, the parties may look back to their original employment contract rather than going to court to resolve a disagreement about how much a worker should be paid or what daily activities they are responsible for.

A job contract may be made in the following ways:

1. Written: It may be a written document that includes the essential criteria of the job as well as any additional conditions agreed upon by the parties.
2. Oral: The conditions may be agreed upon verbally rather than in writing (albeit having a written copy is considerably more dependable when it comes to disputes or legal concerns); or
3. Implied: A mix of written and oral clauses may construct the parties’ employment agreement. For example, the parties may stipulate the worker’s pay and key obligations. However, they may orally agree to small details, such as regularly carrying out the worker’s trash.

One last thing to remember about employment contracts is that the most prevalent agreement is an “at-will” one.

These agreements specify the employee’s position (i.e., “at-will“) and stand for the notion that the employee may dismiss the worker at any time without cause or quit at any time for any reason.

What Should My Employment Contract Contain?

Although both sides negotiate some employment contracts, many companies draft their basic employment agreement before interviewing or hiring any employees. This agreement guarantees they capture all required or necessary for the work and their company.

An employment contract is often tailored to the work role. In general, an employment contract will normally include the following topics:

• The job title and description;
• A start date, a regular work schedule, and, sometimes, a termination date;
• The position’s salary or hourly income, as well as the amount;
• A list of bonuses or perks included in the position’s salary package;
• Whether or whether there is a probationary term, and if so, how long it lasts (typically approximately 3 months or 90 days);
• How much vacation time is provided and what holiday breaks are available to employees;
• Policies governing sick or disability leave;
• What the employer’s disciplinary processes are in the event that an employee violates them;
• If any non-compete or non-solicitation clauses exist;
• Confidentiality agreements (particularly important when dealing with secret formulae or recipes that only the employer and business employees have access to); and
• Requirements for notice and termination processes.

This list is merely a rough outline of what is often included in an employer’s first employment contract. Other extra criteria may be worked up between the employer and the employee as they see appropriate, as well as any needs that develop when the firm expands or the person’s job changes over time.

The employment agreement may also contain additional provisions needed by both state and federal legislation, depending on the job and the kind of organization.

Hiring an employment attorney to design and evaluate the employment agreement is the best way to guarantee that it is legally enforceable and free of violations.

What Are Some of the Advantages of Creating an Employment Contract?

As previously noted, it is advantageous for an employer to have a good employment contract to prevent future legal conflicts with their employees. This agreement assures that if a legal issue arises, the employment contract may be utilized as evidence to support the employer, presuming the contract is genuine.

An employment contract may be used as evidence to support an employer in the following situations:

1. A lawsuit for breach of contract;
2. Wrongful termination claims;
3. Breach of confidentiality obligations (e.g., leaking trade secrets);
4. A variety of other separate claims may emerge on an individual basis.

What Are Some Employment Contract Negotiation Tips?

Negotiating an employment contract can be crucial in securing a job that aligns with your needs and expectations. The following are some tips to help you through the process:

1. Research and prepare: Gather information about industry standards, the company’s compensation policies, and the value of similar positions. Know your worth and understand the job requirements.
2. Prioritize your needs: Make a list of what is most important to you, such as salary, benefits, flexible hours, remote work options, or professional development opportunities. Prioritizing your needs will help you focus on the most relevant negotiation points.
3. Practice active listening: Listen carefully to the employer’s perspective and acknowledge their concerns, which helps build rapport and establishes a foundation for a more successful negotiation.
4. Be flexible and open-minded: While knowing your priorities is essential, be willing to compromise and explore alternative solutions that meet both parties’ needs.
5. Be professional and respectful: Maintain a positive and respectful tone throughout the negotiation process. Being confrontational or aggressive can harm your chances of reaching a satisfactory agreement.
6. Highlight your value: Emphasize your skills, experience, and the unique qualities you bring to the company, helping justify your requests for better compensation or improved working conditions.
7. Be patient and avoid rushing: Negotiations can take time. Allow the process to unfold and avoid pushing for immediate answers, which may lead to a less favorable outcome.
8. Don’t be afraid to ask: If you’re unsure about something or need clarification, ask questions. Understanding the terms and conditions before committing to a contract is better.
9. Know your walk-away point: Establish a minimum threshold for your terms and be prepared to walk away if the negotiation doesn’t meet your needs. This threshold helps you maintain control and avoid settling for less than what you deserve.
10. Get everything in writing: Once you reach an agreement, ensure that all negotiated terms are included in the written contract, which will protect you from potential misunderstandings or conflicts in the future.

Remember, negotiation is a skill that improves with practice. Approach the process with confidence and a willingness to collaborate, and you’re more likely to secure a contract that meets your needs and expectations.

Do I Need an Attorney to Help Me With My Employment Contract Issues?

Whether you are an employer or an employee, having a contract lawyer prepare and evaluate your employment contract is always a good idea.

Hiring an employment lawyer to design and evaluate your employment contract will guarantee that it is legally enforceable, does not violate any employment regulations, and has all elements essential to the parties’ successful working relationship.

Furthermore, a lawyer may aid you in negotiating the terms of your employment contract or renegotiating your contract if your work conditions change.

LegalMatch is an online legal service connecting you with experienced employment lawyers who handle employment contract issues. By filling out a brief online form, LegalMatch can match you with multiple qualified attorneys in your area who can provide legal guidance and representation for your employment contract issues.

The attorneys you are matched with will have knowledge of the relevant employment laws and regulations that apply to your situation and can help you negotiate or renegotiate the terms of your contract to protect your rights and interests.

Use LegalMatch to find a contract lawyer today.