There are a variety of important goals for an employment-related contract, including that it protects the employer and the employer’s business and creates a positive work environment for the employee. Because of the importance of an employment contract, employers should understand how to structure an employment contract and the employment law resources available to help.
At its most basic level, an employment contract outlines the employer-employee relationship. As such, an employment contract should clearly outline the position and the job requirements and duties for the position so the employee has a clear understanding of the expectations. An employment contract should also outline the place and hours for the position.
In addition, the employment contract should include the length of the agreement between the parties and include provisions for extending, reducing or terminating the contract term or the contract. Performance-based expectations and requirements for the position should also be outlined in the employment contract. Compensation and how it is calculated, as well as benefits, should also be included in any employment contract. The employer may wish to include other provisions such as a non-compete clause or non-disclosure provision.
It is useful to keep in mind that employment contracts should always include clear and straightforward language. It is also important for the employment contract not to be one sided, so employers should take that into account as well. Additionally, when an employment contract dispute arises, civil litigation remedies are available. Therefore, it is helpful for employers to be familiar with employment law resources if they run into a dispute and when they are writing their employment contracts.