Employment Agreement: 5 Reasons To Have One
Marie Raperto, The Hiring Hub
Employment agreements may be in your future. But what are they? They are contracts that limit an employer's right to fire an employee by setting a term of employment or by detailing the grounds for termination. Employment agreements are not offer letters or employed at will documents that employers may ask an employee to sign. So, why use an employment agreement?:
- An employer might want to keep control over an employee's ability to leave a company. The agreement can state that you are hired for a specific period of time or can ask that you give a longer notice. Not complying will come with a penalty that will be stated in the agreement.
- Confidentiality clauses can be included and they can prevent an employee from using any information against a company should they leave.
- These agreements can give a candidate job security and 'special terms' not given to regular employees.
- Depending on the grounds for termination, agreements can make it easier or harder to let an employee go.
- Employment agreements are not easy to break and must be renegotiated should either side wish to terminate the agreement.
Your employment agreement/contract should include: The duration of the job; responsibilities, all the benefits you will receive, grounds for termination, confidentiality or non-compete clauses while employed and after, ownership of the employee's work product and terms for renegotiation of the agreement.
Before signing an employee agreement/contract, it is best to have an employment attorney review the document.
