Employment Agreement is a contract that establish the legal relationship between an employer and an employee when they enter into an employment relationship.
An employment agreement can include, but are not limited to, provisions such as: (1) the scope of employment; (2) compensation, including equity grants and other non-monetary incentives, if applicable; (3) employee medical and retirement benefits, if any; (4) specific job responsibilities, expectations, and limitations; (4) terms of termination; (5) confidentiality; (6) post-employment limitations, such as non-compete agreements; and, (7) dispute resolution. However, an employment agreement can cover a broader scope of topics tailored uniquely to the company objectives and the employee’s specific duties.
Employment contracts can be essential tools in protecting company assets and business by establishing clear guidelines and limitations for the employee. These agreed upon provisions can be critical in the event litigation arises as a result of the employment relationship, and can play an important role in limiting the employer’s liability.
Specifically, an employment agreement can explicitly state that an employee is employed at will – that is, that an employee can quit or be fired at any time, for any reason that is not illegal. Therefore, an employment agreement can affirm the employer’s general right to fire at will without the fear of consequence of costly litigation.
Additionally, these type of contracts can be especially advantageous if a business has a unique product, or service method, that needs to be specifically protected for the business to maintain its competitive advantage in the market. Accordingly, employment agreements can include precise confidentiality and/or non-compete provisions that can be tailored to ensure that a business’ intellectual property is protected during the term of the employment relationship and after it ends.
An employment agreement can be essential tools in business planning, ensuring that clear guidelines are established for both the employee and employer allowing the business to thrive.
For more information on employment agreements, please contact Antonoplos & Associates at 202-803-5676 or on the web at www.Antonlegal.com.