Employment Agreements - Are Employment Contracts Compulsory
What You Need to Know About Employment Contracts
An employment agreement is an essential document, whether you need a work contract for an independent contractor on a small project or an executive employment agreement for a CEO of a large company. Whether or not you are self-employed, a work contract will not only protect your profits, but create a more professional work reputation. Completing a sample employment agreement can minimize the chances of a future dispute and save time and money spent on litigation in court. The following will provide an overview of key terms to include in a basic employment contract. Of course, an executive employee agreement will contain more complex details.
Basic Employment Agreement Terms
- The names of the employer and employee or independent contractor
- The date(s) of hire and date of termination or renewal of the contract. A work contract may also be stated to be an at will employment agreement, in which the person hired can be fired for any, or no reason at all, as long as the termination isn't based on illegal discrimination.
- The rate of pay. The pay may be stated as hourly or a salary. Payment terms should include how and when payments will be made.
- A job description of the duties to be performed. If applicable, the employment agreement can detail who will be responsible for supplying necessary work materials.
There can be a number of other provisions written into a work contract. For example, the contract may contain terms for perks like vacation time, health benefits, or sick days. An executive employee agreement will often offer perks like stock options or a company car. Whether hiring an executive or an independent contractor or self-employed consultant, there may be a need for a confidentiality or noncompetition clause to protect trade secrets and customer lists in the employment contract. Terms for liability in cases of nonperformance of contract duties can be covered, as well as responsibilities for obtaining work permits or insurance coverage to cover accidents. An arbitration clause or governing law in case of disputes may be added.
US Legal Forms has an affordable, professionally drafted employment agreement template to fit any situation, and the employment contract template can be easily completed from the convenience of your own computer. We also offer a vast selection of related new hire forms that often accompany an employment contract sample.