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Employment Agreement

An Employment Contract is agreement which covers the working relationship of a company and an employee. It allows both the parties to understand the obligations and the terms of employment. It may include salary and wages of the employee, schedule, duration of employment, general responsibilities, confidentiality, communications, benefits, future competitions, alternate names, etc.

It basically is a document which is signed by both the employer and employee and it lays out the terms of employment relationship. It makes clear what you expect from the employee in terms of job duties and responsibilities, and what he or she can expect from you salary and benefits.

An Employment Contract May also Include:

a. The PTO/vacation policies

b. The non-disclosure and non-compete agreements

c. The ownership agreements and assignment clauses

d. The grievance procedures

e. The dispute resolution methods i.e. mediation or arbitration

f. The provisions for breach of contract


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Advantages of Employment Contracts

a. Retain valuable employees.

b. Stand out to attract top talent.

c. Reduce risk of up-front investment.

d. Protect business interests.

e. Ease employment transitions and limit disruption.

Disadvantages of Employment Contracts

a. less flexibility in adapting to change conditions.

b. limits ability to fire an employee.

c. administrative burden and costs.

d. legal ramifications of a bad faith breach

Employment contracts offer many protection and benefit but they have drawbacks and it should be considered. They are legally binding and it should always be reviewed by an experienced senior legal counsel in our team. An employment lawyer from our team will review the employment contract to determine the validity and if the provisions are enforceable on both sides.


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