Essential Elements of an Employment Contract

An employee contract is a legal document between an employer and employee that outlines certain aspects of the employment relationship. Such aspects clearly define the employment terms and conditions before the employer and employee enter into a relationship. Additionally, these terms and conditions can benefit both the employer and employee.

A skilled employment attorney who specializes in areas of employment law such as contracts and handbooks can help you both write and understand an employment contract.

While these contracts can include nearly anything the employer and employee can and should expect from each other, below are some of the most common elements to any employee contract.

1. Terms of Employment: Generally, the terms of employment include how long the employee will be employed. For freelance or contract positions, this might mean for a specific amount of time or until a project is complete; for more traditional employment, this often means indefinitely or until either party terminates the employment relationship.

2. Employee Responsibilities: One of the most varying parts of an employment contract is the section detailing employee responsibilities. This is because every job is different; therefore, the expectations for each position differ. For example, a construction contractor’s employee responsibilities aren’t the same as a salesperson’s responsibilities.

3. Employee Benefits: Benefits can range from health and life insurance to disability pay and retirement plans. Sometimes, employment benefits include purchasing and/or owning stock in the business.

4. Employment Absence: Most often, employment absence includes factors such as sick days or personal leave and vacation time.

5. Dispute Resolution: Such resolutions might include methods such as mediation or arbitration to solve disputes between an employee and employer.

6. Nondisclosure Agreements: These agreements prevent employees from sharing a company’s business secrets, such as trade information or client lists.

7. Ownership Agreements: Simply put, an ownership agreement means anything produced by the employee while employed by the employer becomes property of the business.

8. Assignment Clauses: Similar to ownership agreements, assignment clauses basically means any patents obtained by the employee during his or her employment are assigned to the business.

9. Employment Opportunity Limitations: Many employee contracts include clauses that prevent the employer from limiting the employee’s potential future job prospects should the employer terminate him or her, or should he or she decide to leave the job.

10. Termination: Each employee contract should clearly define all possible grounds for termination.

Again, these are just a few of the key elements of an employee contract—all of which can benefit both the employer and employee in making sure the business relationship is as healthy and productive as possible.

Also Read: How to Properly Write an Employee Handbook

Are You Ready to Write or Sign Your Employee Contract?

Coral Gables Employment Attorneys at the Campbell Law Group, P.A., in Coral Gables, Florida specializes in guiding you through the employee contract process. Whether you need assistance writing an employee contract or are a potential employee who wants to make sure you fully understand an existing contract, you can contact us today at 305-460-0145 or info@thecampbelllawgroup.com for help.