What Is An Employment Contract?An employment contract is a written agreement between an employer and employee that details the terms and conditions of the employment arrangement. This includes the rights and responsibilities of the employee as well as the expectations of the employer, for example. In order to be legally binding, an employment contract must be properly drafted by an experienced and reliable employment attorney.
Who Needs An Employment Contract?Anyone involved in an employment arrangement in the United States must have a formal employment contract. This includes both employers and employees. Federal and state governments in the U.S. have designed strict labor laws and employment regulations that must be abided by to the letter. An official employment contract can protect you from damaging and costly litigation. Without one, your business is left extremely vulnerable.
What Does An Employment Contract Include?It depends. There are different types of employment contracts. The most common of these include at-will employment contracts and express employment contracts. Even within these distinct types of employment agreements, there can be a wide range of variation, though. The following is a list of provisions that an employment agreement could include:
- Compensation and benefits
- Vacation pay
- Sick days
- Rest and meal breaks
- Privacy and confidentiality
- Employee dress codes
- Sexual harassment
What Is the Process for Employment Contract Formation?To draft a valid employment contract, you’ll need extensive knowledge of the labor law and employment contract law in the United States. Without this, your contract will inevitably be filled with loopholes that could leave you vulnerable to costly lawsuits. That’s why it’s best to hire a professional employment lawyer.
Even the best employment contract must have the appropriate signatures in order to become legally binding, however. Each of your employees must sign the agreement prior to the start of the employment arrangement.