Understanding the employment contract

There’s no doubt that the economy has recovered considerably since the Great Recession. With the job market growing in response and the employment rate continuing to decline, employers are often left competing for the best employees in their field. This means that the terms of one’s potential employment need to be strong, which is sometimes commemorated in a contract.

There are a number of issues that can be addressed through an employment contract. Obviously, the length of employment and salary can be detailed, but so too can vacation and other leave as well as job duties. There are other more complex matters that may be addressed, too. For example, an employee may be asked to ensure that confidentiality is maintained, which can help an employer guarantee that its secrets are maintained. Sometimes employment contracts require confidentiality to be maintained even after employment has ended.

But the types of terms don’t stop there. Non-compete clauses may prevent an employee for working for a competitor for a certain number of years after leaving employment, and an employment contract may specify who owns certain intellectual property that is created by the employee during his course of employment. Additionally, many contracts specify that an employee may not be employed by anybody else while working for the employer.

Employment contracts may seem simple on their face, but they can actually be quite complicated. This is especially true when they are extremely detailed or when a verbal promise was made to an employee. Those who believe they have suffered harm due to a breached contract should likewise consider seeking legal counsel. To avoid potential breach of contract issues, which arise when a party fails to adhere to the terms of the agreement, it is wise for businesses and potential employees alike to acquire legal assistance to ensure that the terms of the contract are fair and legally valid.