What Is Meant by Employment Contracts?
An employee contract is an agreement concerning the terms of employment. Some employment contracts delineate the amount of time the employee will be on the job, while others are aimed to protect the employer from certain post-employment actions.
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Fixed Term Contracts
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A fixed-term employment contract is an agreement that employee will work for employer for a specified amount of time. The employment ends once the contract period has come to a conclusion. A seasonal job, special project and filling in for a leave of absence are considered examples of fixed-term employment contracts.
Contract To Hire
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This is an employment contract with an option. The employee is hired on a contractual basis, and if employee is a good fit for the organization, the employer has the option to extend full-time employment.
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Covenant Not to Compete
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Under this type of employment contract, an employee must not compete with the employer's business and operations within a certain time frame after employment has terminated. Distance may also fall under a covenant not to compete. An employee may be prohibited from competing with employer within a specified square mileage of the employer's place of business or operations.
Trade Secrets
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Once employment has terminated, a covenant not to compete prohibits the former employee from disclosing the employer's trade practices, secrets or other information deemed proprietary to employer.
Enforcement
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Depending on each state's laws, employer may have recourse if employee's actions are considered in violation of a covenant not to compete. The employer may file a court action called an injunction to enforce the employment contract.
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