Don’t Miss These Important Additions to Your Next Employment Agreement
Whether you’re on the market for a new position or looking for the next person to add to your team, it’s important that you have an Employment Agreement. Having a written agreement between employers and employees protects both in multiple ways.
Employee agreements help provide clarity to both the employee and employer regarding expectations, compensation and more. These are typically signed when the new employee is hired. In the best interest of both parties, there are important points that should be covered in these agreements.
So what is it that you need to ensure you have in your next employment agreement covers everything it should?
The 9 Things Your Next Employment Agreement Should Include
1. BRIEF JOB DESCRIPTION
The position title along with a description of the duties and responsibilities of the employee
2. TERM OF EMPLOYMENT
Not every employee agreement will include this, because there may not be a set employment period. However, when there is, it is important to note the start and end date of the employment. The end date can be a specific date, a renewal date, or simply be until the agreement is terminated.
3. SALARY OR HOURLY PAY
This section entails how much money the employee is earning. For hourly employees, it should include the pay rate and whether the employee is part-time or full-time. For salaried employees, it should include the salary amount as well as when pay periods occur.
What employee benefits does the employer offer? Things like health insurance, retirement plans, and paid leave may be offered. If benefits are only available after a certain time frame, such as a probationary period, it should be noted.
5. THE ABILITY TO TERMINATE FOR CAUSE
The employer is able to terminate employment if needed. Employees can face this if they get caught doing things such as lying, stealing, leaking confidential information, and more. If this happens, the employer is not required to give the employee notice.
6. NON-COMPETE AGREEMENT
An agreement that the employee will not seek out or engage in any work that is in direct competition with the employer, during (or after) employment. This can protect companies from employees leaving and taking other employees with them or sharing crucial information with the competition such as future plans. The duration of these agreements often lasts for a set time period after the employment is over.
7. CONFIDENTIALITY AGREEMENT
There may be information that the employee will have access to that is confidential. Here it will commonly state that the employee is not allowed to share this information with anyone who is not also employed by the same company.
Discrimination in the workplace can be caused by several different factors. Common ones are race, ethnicity, sexual orientation, gender, religion, and age. The employer may include that they are equal opportunity employers and do not tolerate discrimination. The employee will most likely have to agree that they will not engage in any form of discrimination.
9. VENUE WHERE DISPUTES WILL BE SETTLED
The “venue” refers to the court and location of court where any legal disputes will take place between the employee and employer (if any). Companies commonly use their local courts.
Protect Your Position and Insist on an Agreement. We Can Help.
If you have an Employment Agreement that doesn’t include all of these provisions, then you need to talk to an attorney who can assist you in crafting the sections in a way that protects both sides. Contact our Employment Agreement Attorneys today to ensure your next contract has everything it needs.