Employment contracts can be an important part of employment relationships. They can be important for protecting the interests of both employers and employees. For that reason, both employers and employees should be familiar with what should be included in an employment contract.
Nature and term of employment
The employment contract should include the job title of the employee and the job description for that employee so that the nature of their overall employment is described. The employment contract should also include the term of the contract which is how long the contract will last.
Compensation and benefits
The employment contract should outline the compensation package for the employee, including the amount of compensation they will be paid and the benefits related to their employment that they will receive.
The employment contract should also include any incentive-based or bonus compensation the employee can receive. How these payments will be structured should be specified and included in the employment contract.
Early termination provision
The employment contract should address what will happen in the event of an early termination of the contract which could occur through a resignation or termination for cause or without cause.
The employment contract should also include provisions related to disability and confidentiality and other technical legal requirements such as restrictive covenants and a provision that there are no prior agreements between the parties. Employment law can help employers navigate employment concerns they may have and develop an employment contract that protects their interests.