Employment Agreement

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Employment Agreement

An employee agreement is a legally enforced business contract document that the employer outlines as well as highlights all the rules, regulations, employment duties, compensation, and duration of the employment, nondisclosure agreement and the termination clauses before hiring the employee. The employment agreement is necessary for both parties (employer and the employee) to ensure that there is no confuse and legal hassle in the future. The guidelines stipulated in the agreement are identifiable and easy to follow. Generally, there is no confusion regarding the employment agreement but it is always advisable for the employee-to-be to read the fine print before signing the document. The employment agreement is structured in a certain way so that all the required rules and regulations are properly set. The important reasons for the employment agreement are:

  • Avoidance of any legal or court hassle for both employer and employee
  • Specifying all payment and working duration from the employer’s end
  • Serve as a reminder during negligence or breach of conduct by both parties

The employment agreement is rarely an oral agreement. It is always written and advisable to have the agreement in print for future convenience. There should be a certain amount of flexibility with regards to the ability to accommodate new clauses or change existing ones as the situation arises. The following are the structural guidelines that need to be followed with regards to making an employment agreement:

  • The names of both employer and the employee must be clearly. There should not be any spelling error with regards to both parties’ names as this may cause legal troubles in the future.
  • A thorough description of the employee’s duties. This section should cover all the expected duties that an employee on engagement should perform.
  • The performance level that is expected from the employee must be clearly stated. Sincerity and loyalty are two traits that are highly required for any form of employment.
  • The duration of the employment must be mentioned. And it may be subject to renewal after expiration.
  • Reimbursement and compensation guidelines on the part of the employer must be specified.
  • A nondisclosure agreement clause must be inserted so as to maintain a level of secrecy within the business. Any breach of this clause will result in termination.
  • The options to terminate on the basis of certain grounds by the employer
  • The terms of this contract must be exclusive and unique.